Reference no: EM132454824
Problem - GeneralProducts Inc is incorporated in Nevada, USA on Jan 1, 2013 to takeover a local retail chain. The objective of the company is to supply goods of everyday use to customers at the most competitive prices. GeneralProducts has chain of stores throughout USA. The retial operations of the company are so designed that customers can shop seamlessly in stores and online.
Balance Sheet of GeneralProducts Inc. on Dec 31, 2015
|
Assets
|
|
|
$
|
|
Current Assets
|
|
|
|
|
Cash and cash equivalent
|
|
11,980
|
|
|
Accounts Receivables
|
|
20,520
|
|
|
Inventory
|
|
317,060
|
|
|
Inventory of Premiums (@$1.10 per premium)
|
660
|
|
|
Total Current Assets
|
|
|
350,220
|
|
Long Term Assets
|
|
|
|
|
Investments
|
|
66,775
|
|
|
Property Plant and Equipment
|
750,000
|
|
|
|
Less Accumulated Depreciation
|
90,000
|
660,000
|
|
|
Total Long Term Assets
|
|
|
726,775
|
|
Intangible Assets
|
|
|
|
|
Trade Marks
|
|
|
190,000
|
|
Total Assets
|
|
|
1,266,995
|
|
Liabilities and Shareholders' Equity
|
|
|
|
|
Current Liabilities
|
|
|
|
|
Accounts Payable
|
|
50,722
|
|
|
Liability for Premiums and Coupons
|
|
550
|
|
|
5% Short Term Notes Payable due on March 31,2016
|
8,000
|
|
|
Accrued Interest on 6% Bonds Payable
|
|
3,000
|
|
|
Total Current Liabilities
|
|
|
62,272
|
|
6% Bonds Payable due 2020
|
|
100,000
|
|
|
Unamortized Discount on Bonds Payable
|
|
6,732
|
93,268
|
|
Total Liabilities
|
|
|
155,540
|
|
Stockholder's Equity
|
|
|
|
|
Common Stock
|
|
|
|
|
125,000 shares, par value $1 authorized
|
|
|
|
|
100,000 shares issued and outstanding
|
|
130,000
|
|
|
Paid inCapital in Excess of Par
|
|
946,000
|
|
|
Retained Earnings
|
|
35,455
|
|
|
total nStockholders' Equity
|
|
|
1,111,455
|
|
|
|
|
|
Total Liabilities and Stockholders' Equity
|
|
|
1,266,995
|
GeneralProducts provides us financial and business related data for 2016 below.
1. Trades Marks were acquired for $200,000 in 2015.Estimated useful at the time of acquisition was 20 years. There was a litiagation brought out by a competitor against the Trade Mark. GeneralProduct could successfully defended this litigation at a cost of $ 45,000. New useful life of Trade Mark is estimated to be 25 years from the date of acquisition.
2. All sales are on credit and totalled $ 940,560. COGS are $780,650.
3. Included in the total sales of $940,560 are the sales of GeneralProducts brand 6000 soap powder boxes GeneralProducts includes one coupon in every soap powder box. Customers can redeem 4 coupons for one Kitchen untensil. Based on past experience 60% of the coupons are redeemed by customers. During 2016 3,400 coupons were redeemed. Purchase of premiums during 2016 totalled 1,000 premiums @ $1.10 each on credit.
4. 6% Bonds Payable are issued on Jan 1 2015 to yield 8% interest. Interest is paid semiannualy on Jan 1st and June 30th. General Products can redeem these Bonds any time after June 30,2016 @ 101.
5. To take advantage of lower interst rates and to finance the redemption of 6% Bonds, on Sept.1st 2016, GeneralProducts issued 5%Bonds in the face value of $100,000 to yield 6%. The maturity period of these 5% Bonds is 10 years and interest is paid semiannually on 1st Jan and 30th June. The proceeds from the issue of 5% Bonds are used to redeem 6% Bonds Payable @ 101 on Sept.1st 2016.
6. Selling Administrative Expenses excluding depreciation are $87,345. PP&E is depreciated on Striaght Line Method over 25 years of life.
7. Cash collected from customers totalled $906,450.
8. Cash paid to suppliers for credit purchases totalled $728,254.
9. Purcahses of inventory totalled $ 689,525.All purchases are on credit.
10. GeneralProducts purchased Land for $30,000 for construction of building
Required -
1. Record the necessary journal entries for 2016.
2. Prepare Income Statement and Retained Earnings Statement for the year 2016.
3. Prepare Balance Sheet on December 31, 2016.
4. Show full work of all the financial items reported in Income Statement and Balance Sheet.
|
Discuss about state requirements for educational facilities
: Discuss about State requirements for educational facilities(FLORIDA),Florida building code requirements,compliance with code,possible violations
|
|
Compute the price ShriverShriver paid
: S Corp. purchased 5, $1,000, 6% bonds of Simplex Corporation when the market rate of interest was 10%. Compute the price ShriverShriver paid
|
|
What is the amount of organizational expenses
: X Co was incorporated on June 1, but did not start business until September 1. What is the amount of organizational expenses and the amount deductible
|
|
How can solve the signal impulse
: Dicuss what will be the matlab code for the difference equations provided and How can you solve the following signal impulse response by doing it on matlab
|
|
Prepare Balance Sheet on December
: GeneralProducts Inc is incorporated in Nevada, USA on Jan 1, 2013 to takeover a local retail chain. Prepare Balance Sheet on December
|
|
Explain where would like to be in career in five years
: If absolutely no obstacles stood in the way of your achieving it, what would you most like to attain in your career?Where would you like to be in your career
|
|
Brief description of quality assurance
: A brief description of Quality Assurance (QA) in Systems Development and why it is important An illustration of the testing process in the Agile model
|
|
Company policies regarding attendance and punctuality
: Imagine you are supervising an employee who is "on loan" from your company's Tokyo office. She is an excellent worker but sometimes absent and often late.
|
|
Define a security testing tool configuration
: Define a security testing tool configuration that is based upon virtual machines rather than disk partitions. What are some advantages of your new architecture?
|