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, you$$ll need to use the financial information below in the prior year$$s 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.