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 (though realistic) company scenario. 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 competitive prices, both in stores and online. To complete this project, youll need to use the financial information below in the prior years Balance Sheet (dated December 31, 2021) along with the current financial data provided for 2022. GeneralProducts, Inc. Balance Sheet As of December 31, 2021 ASSETS Current Assets Cash 11,980 Accounts Receivable 20,520 Merchandise Inventory 317,060 Total Current Assets 349,560 Long-Term Assets Investments 66,775 Property, Plant and Equipment (PP&E) 750,000 Less: Accumulated Depreciation (90,000) 660,000 Total Long-Term Assets 726,775 Intangible Assets Trademarks 200,000 Less: Accumulated Amortization (10,000) 190,000 Total Assets 1,266,335 LIABILITIES Accounts Payable 50,722 Total Liabilities 50,722 STOCKHOLDERS' EQUITY Common Stock (300,000 shares authorized, par value $1, 200,000 shares issued and outstanding) 200,000 Paid-in Capital in Excess of Par - Common Stock 979,278 Retained Earnings 36,335 Total Stockholders' Equity 1,215,613 Total Liabilities and Stockholders' Equity 1,266,335 GeneralProducts, Inc. provided the following financial and business-related data for 2022 below: Item # 1 All sales were on credit and totaled $940,560, with the associated COGS totaling $780,650. The sales and COGS have not yet been recorded, so a consolidated journal entry will be required. 2 Cash collected from customers totaled $906,450. These cash collections have not yet been recorded, so a consolidated journal entry will be required. 3 Purchases of merchandise inventory from suppliers totaled $689,525. All purchases were on credit. These purchases have not yet been recorded, so a consolidated journal entry will be required. 4 Cash paid to suppliers for credit purchases of merchandise inventory totaled $728,254. These payments have not yet been recorded, so a consolidated journal entry will be required. 5 Selling and Administrative Expenses (these are all cash expenses) totaling $87,345 were incurred and paid. These expenses and payments have not yet been recorded, so a consolidated journal entry will be required. 6 GeneralProducts purchased land for $30,000 in advance of construction of a building and paid the amount in full. This purchase and payment have not yet been recorded, so a consolidated journal entry will be required. 7 PP&E is depreciated using the straight-line method over 25 years of life. PP&E depreciation for 2022 has not yet been recorded, so a consolidated journal entry will be required. 8 Trademarks were previously acquired for $200,000 on January 1, 2021. Estimated useful life at the time of acquisition was 20 years. However, in early 2022, a competitor initiated litigation challenging these trademarks, but GeneralProducts successfully defended these trademarks at a total legal cost of $60,000. Moving forward, the new (updated) useful life of the trademarks is now estimated to be 25 years, spanning the current year 2022 through the end of 2046. The legal expenses have not yet been recorded, so an appropriate journal entry will be required, and Trademark amortization will also need to be recorded for 2022. 9 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 of smoothie mix. As a promotional premium offer to increase sales of this new smoothie mix, customers can download one digital coupon for every box of smoothie mix they purchase. Customers can then present 4 of these coupons to redeem them for one free "premium" item, a decorative metal sipping straw. Based on past experience, 60% of the coupons are expected to be downloaded and redeemed by customers. To support this special promotion, in 2022 GeneralProducts purchased 900 of the premium items (decorative metal sipping straws) at $1.00 each for cash. This purchase of the decorative metal sipping straws will need to be recorded in a special new account titled "Premium Inventory" to distinguish it from the company's Merchandise Inventory account. During 2022, 3,400 coupons were actually redeemed by customers. Journal entries will need to be made to Premium Expense and Premium Liability accounts, as appropriate. 10 GeneralProducts issued bonds with a face amount (total maturity value) of $100,000 at a stated annual interest rate of 5%, sold to yield an effective annual interest rate of 6%. The maturity period of these 5% bonds is 10 years and interest is paid semiannually on January 1 and June 30 of each year. 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 entry will be required to record this bond sale. The effective-interest method will be applied to amortize the discount. At the end of the year, a journal entry will be required to accrue the interest for 2022. 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!