see attached file Acct project.

REQUIREMENTS

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. Please round your calculations closest to $. Ignore tax.

1. Trades Marks were acquired for $200,000 in 2015.Estimated useful at the time of acquisition was 20 years
2. There was a litigation brought out by a competitor against the Trade Mark. GeneralProducts could successfully defend 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.
3. All sales are on credit and total $ 940,560. COGS are $780,650.
4. 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 utensil. Based on past experience 60% of the coupons are redeemed by customers. During 2016 3,400 coupons were redeemed. Purchase of premiums during 2016 total 1,000 premiums @ $1.10 each on credit.
5. 6% Bonds Payable are issued on Jan 1 2015 to yield 8% interest. Interest is paid semi-annualy on Jan 1st and June 30th.
6. General Products can redeem these Bonds any time after June 30,2016 @ 101.
7. To take advantage of lower interest 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 semi-annually 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.
8. Selling Administrative Expenses excluding depreciation are $87,345. PP&E is depreciated on Striaght Line Method over 25 years of life.
9. Cash collected from customers total $906,450
10. Cash paid to suppliers for credit purchases total $728,254
11. Purcahses of inventory total $689,525.All purchases are on credit.
12. GeneralProducts purchased Land for $30,000 for construction of building

GeneralProducts Inc is incorporated in Nevada, USA on Jan 1,2013 to takeover a local retail chain. The objective of the compan suuply goods of every day use to customers at the most competitive prices. GeneralProducts has chain of stores throughout USA. The retail 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 Accounts Receivables Inventory Inventory of Premiums (@ $1.10 per premium) Total Current Assets Long Term Assets Investments Property Plant and Equipment Less Accumulated Depreciation Total Long Term Assets Intangible Assets Trademarks Total Assets Liabilities and Shareholders' Equity Current Liabilities Accounts Payable Liability for Premiums and Coupons 5% Short Term Notes Payable due on March 31,2016 Accrued Interest on 6% Bonds Payable Total Current Liabilities 6% Bonds Payable due 2020 Unamortized Discount on Bonds Payable Total Liabilities Stockholder's Equity Common Stock 125,000 shares, par value $1 authorized 100,000 shares issued and outstanding Paid inCapital in Excess of Par Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 11,980 20,520 317,060 660 66,775 750,000 90,000 660,000 50,722 550 8,000 3,000 100,000 6,732 130,000 946,000 35,455 GeneralProducts provides us financial and business related data for 2016 below. (1) Trademarks 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 defend this litigation at a cost of $45,000. New useful life of Trade Mark is estimated to be 25 years from the date o (2) All sales are on credit and totaled $940,560. COGS are $780,650. (3) Included in the total sales of $940,560 are the sales of GeneralProducts brand 6,000 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 totaled 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 semi-annually on Jan 1st and June 3 GeneralProducts can redeem these Bonds any time after June 30, 2016 @ 101. (5) To take advantage of lower interest rates and to finance the redemption of 6% Bonds, on September 1st 2016, GeneralProducts issued 5% Bonds with a face value of $100,000 to yield 6% The maturity period of these 5% Bonds is 10 years and interest is paid semi-annually on Jan 1st and June 30th. The proceeds from the issue of 5% Bonds are used to redeem 6% Bonds Payable @ 101 on September 1st 2016. (6) Selling Administrative Expenses excluding depreciation are $87,345. PP&E is depreciated on Striaght Line Method ov (7) Cash collected from customers totalled $906,450 (8) Cash paid to suppliers for credit purchases totaled $728,254 (9) Purchases of inventory totaled $689,525. All purchases are on credit. (10) GeneralProducts purchased Land for $30,000 for construction of building Requirements (1) Record the necessary journal entries for 2016. (2) Prepare the Income Statement and Retained Earnings Statement for the year 2016. (3) Prepare the Balance Sheet on December 31, 2016. (4) Show full work of all the financial items reported in Income Statement and Balance Sheet. Please round your calculations closest to $. Ignore tax. e objective of the company is to ain of stores throughout ores and online. 350,220 726,775 $ 190,000 1,266,995 62,272 93,268 155,540 $ 1,111,455 1,266,995 on was 20 years. uct could successfully e 25 years from the date of acquisition. powder boxes. 4 coupons for one ually on Jan 1st and June 30th. to yield 6% an 1st and June 30th. n September 1st 2016. on Striaght Line Method over 25 years of life. 1 (1) Amortization on Trademarks 2 (3) Inventory of Premiums 3 Estimated Liability for premiums Premium expense 4 (4) Interest Expense 5 (5) Issue Price of 5% Bonds Carrying Value of 5% Bonds Payable on 12/31/2016 6 Loss/Gain on redemption of 6% Bonds Interest payable (6) Selling and Administrative Expenses 7 Depreciation Expense 8 (7) Accounts Receivable (8) Accounts Payable 10 (9) Inventory 11 Cash Balance Beginning Cash collected from cutomers Cash proceeds from issue of 5% Bonds Total Cash Available Payments Purchase of Land Payments to suppliers Redemption of 6% Bonds Interest paid Accrued interes on 12/31 Interest from Jan to June 30, 2016 Interest from July to Aug 31,2016 Selling and Administrative expenses Repayment of Short term Notes Cost incurred to defend Trade Mark litigation Ending balance Dr. (1) Dr.Accrued Interest Cr. Cash (2) Dr. Accounts Receivables Cr.Sales Revenue (3) Dr. COGS Cr. Inventory (4) Dr. Cash Cr. Accounts Receivable (5) Dr. Inventory Cr. Accounts Payable (6) Dr. Accounts Payable Cr. Cash (7) Dr. Selling and Administrative Exp. Cr. Cash (8) Dr. Trade Marks Cr. Cash (9) Dr. Amortization Cr. Trade Marks (10) Dr. Inventory of Premiums Cr. Accounts Payable (11) Dr. Estimated Liability for Premiums Cr. Inventory of Premiums (12) Dr. Premium expense Cr. Inventory of Premiums Cr. Estimated Liability for Premiums (13) Dr. Interest Expense Cr. Cash Cr. Discount on 6% Bonds Payable (14) Dr.Interest Expense Cr. Cash Cr. Discount on 6% Bonds Payable Cr. (15) Dr. Cash Dr. Discount on 5% Bonds Payable Cr. 5%Bonds Payable Cr. Interest Expense (16) Dr. 6%Bonds Payble Dr. Loss on Redemption Cr. Discount on 6% Bonds Payable Cr. Cash (17) Dr. Interet Expense Cr. Discount 5% Bonds Payable Cr.Interest Payable (18) Dr. Depreciation-PP&E Cr. Accumulated Depreciation (19) Dr. Land Cr. Cash GeneralProducts Inc. Income Statement For the Period of January 1 - December 31, 2016 Revenues: Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Selling and Administrative Expenses Operating Income Other Revenues and Expenses Interest Expense Other Gains and Losses Loss on redemption of 6% Bonds Net Income $ - $ - GeneralProducts Inc. Statement of Retained Earnings For the Period of January 1 - December 31,2016 Beginning Balance Net Income Ending Balance $ - $ - Current Assets: Cash Accounts Receivable Inventory Inventory of Premiums Total Current Assets Long Term Investments Total Long Term Investments Property, Plant and Equipment: Less: Accumulated Depreciation Land Total Property Plant and Equipment Intangible Assets: Trademarks Less Amortization Total Intangible Assets Total Assets GeneralProducts Inc. Balance Sheet As Of December 31, 2016 $ Current Liabilibities: Accounts Payable Interest Payable Liability for Premiums and Coupons Total Current Liabilities - $ - $ - - Long-term Liabilities: 5% Bonds Payable Unamortized Discount Total Long-term Liabilities Total Liabilities $ - $ - - Stockholders' Equity Paid in Capital Common Stock APIC- Common Stock Total Paid in Capital Retained Earnings Total Stockholders' Equity $ - Total Equity and Liabilities $ $ - $ - $ - $ - $ - $ - - Total Liabilities