Question: Record the necessary journal entries for the year 2019. Show full calculations on the work! Please round the calculations to the nearest dollar and ignore the taxes. 
Requirement 1 Record the necessary journal entries for the year 2019. Show full calculations on the work! Please round your calculated answers to the closest dollar and ignore taxes. D E F I J K L G H As of December 31, 2018 11,980 20,520 317,060 660 350,220 ASSETS Current Assets Cash Accounts Receivable Inventory Inventory of Premiums (@$1.10 per premium item) Total Current Assets Long-Term Assets Investments Property, Plant, and Equipment (PP&E) 750,000 Less: Accumulated Depreciation (90,000) Total Long-Term Assets Intangible Assets Trademarks Total Assets 66,775 660,000 726,775 190,000 1,266,995 50,722 550 3,000 LIABILITIES Current Liabilities Accounts Payable Liability for Premiums Interest Payable (on 6% Bonds) Total Current Liabilities Long-Term Liabilities 6% Bonds Payable (due 2023) Unamortized Discount on Bonds Payable Total Long-Term Liabilities Total Liabilities 54,272 100,000 (6,732) 93,268 147,540 STOCKHOLDERS' EQUITY Common Stock (150,000 shares authorized, par value $1. 130,000 shares issued and outstanding) 130,000 Paid-in Capital in Excess of Par - Common Stock 954,000 Retained Earnings 35,455 Total Stockholders' Equity 1.119,455 Total Liabilities and Stockholders' Equity 1,266,995 General Products, Inc., provided the following financial and business-related data for 2019 below. Item # 1 2 3 4 Trademarks were previously acquired for $200,000 on January 1, 2018. Estimated useful life at the time of acquisition was 20 years. In 2019, there was litigation challenging these trademarks brought by a competitor, and General Products successfully defended these trademarks at a legal cost of $45,000. The new (updated) useful life of the trademarks was estimated to be 25 years from the date of acquisition. All sales were on credit and totaled $940,560. COGS totaled $780,650. Included in the total sales of $940,560 were the sales of 6,000 soap powder boxes. As a premium offer to increase soap powder sales, General Products includes one special coupon with every soap powder box. Customers can redeem four coupons to obtain one free premium item-a kitchen utensil. Based on past experience, 60% of the coupons are expected to be redeemed by customers. During 2019, 3,400 coupons were actually redeemed. Also in 2019, General Products purchased an additional 1,000 premiums (kitchen utensil items) @ $1.10 each on credit to add to its Inventory of Premiums. Five-year 6% bonds were issued on January 1, 2018, sold to yield 8% interest. Interest is paid semiannually on January 1 and June 30 for these bonds. Maturity value of the bond issue is $100,000 and the issue was sold at a discount of $8,111 for an initial carrying value of $91,889. The bond indenture indicated that GeneralProducts may later call and redeem these bonds @101 any time after June 30, 2019. These bonds were subsequently called and redeemed on September 1, 2019, following the sale of a new 5% bond issue taking advantage of lower interest rates (see Item 5 below). The effective interest method is applied to amortize the discount. To take advantage of lower interest rates and to finance the call and redemption of the previously issued 6% bonds @ 101, on September 1, 2019, GeneralProducts issued new 5% bonds with face value of $100,000 to yield 6%. The maturity period of these new 5% bonds is 10 years and interest is paid semiannually on January 1 and June 30. The new 5% bonds were issued at a discount of $7,438 for an initial carrying value of $$92,562 on July 1, 2019. The effective interest method is applied to amortize the discount. Selling and administrative expenses excluding noncash items totaled $87,345. PP&E is depreciated using the straight-line method over 25 years of life. Cash collected from customers totaled $906,450. Cash paid to suppliers for credit purchases totaled $728,254. Purchases of inventory totaled $689,525. All purchases were on credit. General Products purchased land for $30,000 in advance of construction of a building and paid in full. 5 6 7 8 9 10
