Current Assets Cash 1 1 , 9 8 0 ; Accounts Receivable 2 0 , 5 2
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Current Assets Cash ; Accounts Receivable ; Merchandise Inventory ; Total Current Assets
LongTerm Assets Investments Property, Plant and Equipment PP&E Less: Accumulated Depreciation Total LongTerm Assets
Intangible Assets, Trademarks Less: Accumulated Amortization
Total Assets LIABILITIES. Accounts Payable
Total Liabilities STOCKHOLDERS' EQUITY,Common Stock
shares authorized, par value $ shares issued and outstandingPaidin Capital in Excess of Par Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity
GeneralProducts, Inc. provided the following financial and businessrelated data for below:
All sales were on credit and totaled $ with the associated COGS totaling $ The sales and COGS have not yet been recorded, so a consolidated journal entry will be required.
Cash collected from customers totaled $ These cash collections have not yet been recorded, so a consolidated journal entry will be required.
Purchases of merchandise inventory from suppliers totaled $ All purchases were on credit. These purchases have not yet been recorded, so a consolidated journal entry will be required.
Cash paid to suppliers for credit purchases of merchandise inventory totaled $ These payments have not yet been recorded, so a consolidated journal entry will be required.
Selling and Administrative Expenses these are all cash expenses totaling $ were incurred and paid. These expenses and payments have not yet been recorded, so a consolidated journal entry will be required.
GeneralProducts purchased land for $ 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.
PP&E is depreciated using the straightline method over years of life. PP&E depreciation for has not yet been recorded, so a consolidated journal entry will be required.
Trademarks were previously acquired for $ on January Estimated useful life at the time of acquisition was years.
However, in early a competitor initiated litigation challenging these trademarks, but GeneralProducts successfully
defended these trademarks at a total legal cost of $ Moving forward, the new updated useful life of the trademarks is now estimated to be years, spanning the current year through the end of
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
Included in the total sales of $already noted in Item # above were the sales of 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 of these coupons
to redeem them for one free "premium" item, a decorative metal sipping straw. Based on past experience, of the coupons are expected to be downloaded and redeemed by customers.
To support this special promotion, in GeneralProducts purchased of the premium items decorative metal sipping straws at $ 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 coupons were actually redeemed by customers. Journal entries will need to be made to Premium Expense and Premium Liability accounts, as appropriate.
GeneralProducts issued bonds with a face amount total maturity value of $ at a stated annual interest rate of sold to yield an effective annual interest rate of The maturity period of these bonds is years and interest is paid semiannually on January and June of each year. he bonds were issued at a discount of $ for an initial carrying value of $$ on July A journal entry will be required to record this bond sale. The effectiveinterest 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
Record the necessary journal entries for
Prepare the Income Statement for the year
Prepare the Statement of Retained Earnings for the year
Prepare the classified Balance Sheet as of December and be sure to include all appropriate subheadings
ie Current Assets, LongTerm Assets, Intangible Assets, Current Liabilities, and LongTerm Liabilities
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Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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