Balance Sheet of GeneralProducts Inc. on Dec 31, 2015 Assets $ Current Assets Cash and cash equivalent 11,980 Accounts Receivables 20,520 Inventory…

Balance Sheet of GeneralProducts Inc. on Dec 31, 2015
Assets $ 
Current Assets
Cash and cash equivalent 11,980
Accounts Receivables 20,520
Inventory 317,060
Inventory of Premiums ( @$1.10 per premium) 660
Total Current Assets 350,220 
Long Term Assets
Investments 66,775
Property Plant and Equipment750,000
Less Accumulated Depreciation90,000 660,000
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 50,722
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 
3Included 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 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 totalled
1,000 premiums @ $1.10 each on credit.
46% Bonds Payable are issued on Jan 1 2015 to yield 8% interest. Interest is paid semiannualy on Jan 1st and June 30th.
General Products can redeem these Bonds any time after June 30,2016 @ 101.
5To take advantage of lower interst 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 semiannually 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.
Interest Expense?
Interest payable?
Issue Price of 5% Bonds?
Loss/Gain on redemption of 6% Bonds?
Carrying Value of 5% Bonds Payable on 12/31/2016?
 
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