The objective of this project is to give the students an opportunity to learn accounting for intangibles, current liabilities and long term liabilities in real world scenario and to understand how these transactions impact financial reporting. working through this project, the student will understand and learn the application,analysis and synthesis of accounting and reporting principles governing intangible assets, current liabilities and long term liabilities. This Course Project is due at the end of Week 8. Description 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 1. Trades Marks were acquired for $200,000 in 2015.Estimated useful at the time of acquisition was 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. All sales are on credit and total $ 940,560. COGS are $780,650. 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. 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
The objective of this project is to give the students an opportunity t
The objective of this project is to give the students an opportunity to learn accounting for intangibles, current liabilities and long term liabilities in real world scenario and to understand how these transactions impact financial reporting. working through this project, the student will understand and learn the application,analysis and synthesis of accounting and reporting principles governing intangible assets, current liabilities and long term liabilities. This Course Project is due at the end of Week 8. Description 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 1. Trades Marks were acquired for $200,000 in 2015.Estimated useful at the time of acquisition was 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. All sales are on credit and total $ 940,560. COGS are $780,650. 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. 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
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