Project Objective: Apply financial reporting principles to a realistic company scenario.

• Project Objective: Apply financial reporting principles to a realistic company scenario.
• Company: GeneralProducts, Inc.
• Focus Areas:IntangiblesCurrent liabilitiesLong-term liabilities

ACCT551 Course Project Instructions and Data
This course project is designed to apply financial reporting principles relating to intangibles, current liabilities and long-term liabilities for a ficititious (thou
GeneralProducts, Inc. was incorporated in Nevada on January 1, 2019, to take over a local retail chain and to supply goods to customers at the most comp
To complete this project, you’ll need to use the financial information below in the prior year’s Balance Sheet (dated December 31, 2021) along with the
GeneralProducts, Inc.
Balance Sheet
As of December 31, 2021
ASSETS
Current Assets
Cash
Accounts Receivable
Merchandise Inventory
Total Current Assets
Long-Term Assets
Investments
Property, Plant and Equipment (PP&E)
Less: Accumulated Depreciation
Total Long-Term Assets
Intangible Assets
Trademarks
Less: Accumulated Amortization
Total Assets
11,980
20,520
317,060
349,560
66,775
750,000
(90,000)
660,000
726,775
200,000
(10,000)
190,000
1,266,335
LIABILITIES
Accounts Payable
Total Liabilities
50,722
50,722
STOCKHOLDERS’ EQUITY
Common Stock
(300,000 shares authorized, par value $1,
200,000 shares issued and outstanding)
Paid-in Capital in Excess of Par – Common Stock
Retained Earnings
Total Stockholders’ Equity
Total Liabilities and Stockholders’ Equity
200,000
979,278
36,335
1,215,613
1,266,335
GeneralProducts, Inc. provided the following financial and business-related data for 2022 below:
Item #
1
2
3
4
5
6
7
8
9
10
All sales were on credit and totaled $940,560, with the associated COGS totaling $780,650. The sales and COGS have no
Cash collected from customers totaled $906,450. These cash collections have not yet been recorded, so a consolidated
Purchases of merchandise inventory from suppliers totaled $689,525. All purchases were on credit. These purchases ha
Cash paid to suppliers for credit purchases of merchandise inventory totaled $728,254. These payments have not yet b
Selling and Administrative Expenses (these are all cash expenses) totaling $87,345 were incurred and paid. These expen
GeneralProducts purchased land for $30,000 in advance of construction of a building and paid the amount in full. This p
PP&E is depreciated using the straight-line method over 25 years of life. PP&E depreciation for 2022 has not yet been r
Trademarks were previously acquired for $200,000 on January 1, 2021. Estimated useful life at the time of acquisition w
However, in early 2022, a competitor initiated litigation challenging these trademarks, but GeneralProducts successfull
defended these trademarks at a total legal cost of $60,000. Moving forward, the new (updated) useful life of the tradem
The legal expenses have not yet been recorded, so an appropriate journal entry will be required, and Trademark amort
Included in the total sales of $940,560 (already noted in Item #1 above) were the sales of 6,000 boxes of a new brand o
As a promotional premium offer to increase sales of this new smoothie mix, customers can download one digital coupo
to redeem them for one free “premium” item, a decorative metal sipping straw. Based on past experience, 60% of the
To support this special promotion, in 2022 GeneralProducts purchased 900 of the premium items (decorative metal sip
This purchase of the decorative metal sipping straws will need to be recorded in a special new account titled “Premium
During 2022, 3,400 coupons were actually redeemed by customers. Journal entries will need to be made to Premium Ex
GeneralProducts issued bonds with a face amount (total maturity value) of $100,000 at a stated annual interest rate of
The maturity period of these 5% bonds is 10 years and interest is paid semiannually on January 1 and June 30 of each ye
The 5% bonds were issued at a discount of $7,439 for an initial carrying value of $$92,561 on July 1, 2022. A journal ent
The effective-interest method will be applied to amortize the discount. At the end of the year, a journal entry will be re
Requirements to be completed:
Requirement
1
Record the necessary journal entries for 2022.
2
Prepare the Income Statement for the year 2022.
3
Prepare the Statement of Retained Earnings for the year 2022.
4
Prepare the classified Balance Sheet as of December 31, 2022, and be sure to include all appropriate subheadings
(i.e., Current Assets, Long-Term Assets, Intangible Assets, Current Liabilities, and Long-Term Liabilities).
5
Show full calculation work!
Please round your calculated answers to the closest dollar and ignore taxes.
ed and paid. These expenses and payments have not yet been recorded, so a consolidated journal entry will be required.
the amount in full. This purchase and payment have not yet been recorded, so a consolidated journal entry will be required.
d) useful life of the trademarks is now estimated to be 25 years, spanning the current year 2022 through the end of 2046.
wnload one digital coupon for every box of smoothie mix they purchase. Customers can then present 4 of these coupons