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linda_us, Master's Degree
Category: Multiple Problems
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GeneralProducts Inc. is incorporated in Nevada, USA on Jan

Customer Question

GeneralProducts Inc. is incorporated in Nevada, USA on Jan 1st 2013 to take over a local retail chain. The objective of the company is to supply goods of everyday use to customers at the most competitive prices. GeneralProducts has established a chain of stores throughout USA. The retail operations of the company are so designed that customers can shop seamlessly in stores and online.
You may use the attached Balance Sheet of GeneralProducts as of Dec 2015 and the financial data for 2016.The same information is provided below.
Balance Sheet of GeneralProducts Inc. on December 31, 2015
ASSETS
Current Assets
Cash and Cash Equivalent 11,980
Accounts Receivables 20,520
Inventory 317,060
Inventory of Premiums (@0.10 per premium) 660
Total Current Assets 350,220
LONG TERM ASSETS
Investments 66,775
Property Plant and Equipment 750,000
Less Accumulated Depreciation 90,000 660,000
Total Long Term Assets 726,775
INTANGIBLE ASSETS
Trade Marks 190,000
Total Assets 1,266,995
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts Payable 50,772
Liability for Premiums and Coupons 550
5% Short Term Notes Payable due on March 31, 2016 8,000
Accrued Interest on 6% Bonds Payable 3,000
Total Current Liabilities 62,272
6% Bonds Payable due 2020 100,000
Unamortized Discount on Bonds Payable 6,732 93,268
Total Liabilities 155,540
Stockholder's Equity
Common Stock
125,000 shares, par value $1 authorized 100,000 shares issued and outstanding 130,000
Paid inCapital in Excess of Par 946,000
Retained Earnings 35,455
Total nStockholders' Equity 1,111,455
Total Liabilities and Stockholders' Equity 1,266,995
GeneralProducts provides us financial and business related data for 2016 below.
1. Trades Marks were acquired for $200,000 in 2015.Estimated useful at the time of acquisition was 20 years
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.
2. All sales are on credit and total $ 940,560. COGS are $780,650.
3. 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.
4. 6% Bonds Payable are issued on Jan 1 2015 to yield 8% interest. Interest is paid semi-annualy on Jan 1st and June 30th.
General Products 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 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.
6. Selling Administrative Expenses excluding depreciation are $87,345. PP&E is depreciated on Striaght Line Method over 25 years of life.
7. Cash collected from customers total $906,450
8. Cash paid to suppliers for credit purchases total $728,254
9. Purcahses of inventory total $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 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.
Submitted: 9 days ago.
Category: Multiple Problems
Customer: replied 9 days ago.
Here's the file if it's easier.
Expert:  F. Naz replied 9 days ago.

please mention the deadline, thanks.

Customer: replied 9 days ago.
The deadline is by tonight at 11:59 pm.
Expert:  F. Naz replied 9 days ago.

please tell me how many hours are remaining in deadline?

Customer: replied 9 days ago.
You have approximately 2 and a half hours remaining for deadline.
Expert:  F. Naz replied 9 days ago.

Sorry that is too short for me, thanks.

Customer: replied 9 days ago.
Ok, but I can do one thing though. It's fine on my side but would another 24 hours help?
Expert:  F. Naz replied 9 days ago.

yes i can provide the answer in next 24 to 36 hours, thanks.

Customer: replied 9 days ago.
Perfect. Then it's fine. Thank you.
Expert:  F. Naz replied 9 days ago.

okay, I am sending you the offer please accept it so i can start working on this, thanks.

Customer: replied 9 days ago.
Which offer? you mean the switch to a live phone call?
Customer: replied 9 days ago.
Oh you mean via email?
Expert:  F. Naz replied 9 days ago.

nopes, the offer for $250 in total

Expert:  F. Naz replied 9 days ago.

Yes on your email it will be there

Customer: replied 9 days ago.
Wait a second, I was asked to pay $78 in total before I saw you as the tutor. Is this $78 included with the $172 or is this something separate? So that means I have to pay both $78 plus $172?
Expert:  F. Naz replied 9 days ago.

total is $250 so you will have to pay both 78 and 172

Customer: replied 9 days ago.
Ok. I see what's going on. Actually I'm just going to answer this on my own. Apologies for the time waste but since I won't be accepting the offer, would the $78 be refunded back to my credit card? And how do I decline the offer? By not clicking on it right? Again, sorry about this.
Expert:  F. Naz replied 9 days ago.

Okay no problem, what are you willing to pay then let me know so i can see how much gap is there

Customer: replied 9 days ago.
Well, I can only pay in total for only $150 (78+72) but that's a $100 difference right there and I'm pretty sure you won't be able to accept that amount let along the time restraint given. So I'll just answer these questions on my own. And I appreciate the help out but I'll do it on my own.
Expert:  F. Naz replied 9 days ago.

If you could make this $200 in total then i can accept your question, thanks. just a increase of $50

Customer: replied 9 days ago.
I understand what you mean but unfortunately I won't be able to make this to $200 in total either. And I know it's only a $50 increase but even that is a lot for me hence as I've stated I'll answer this question on my own. I appreciate your time and effort but as a student, unfortunately I won't be able to pay $200. Therefore, will the $78 be refunded back to my CC?
Expert:  F. Naz replied 9 days ago.

yes it could be , contact customer service in this regard, thanks.

Customer: replied 9 days ago.
Thanks!

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