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?