17 18 ITEMS TO COMPLETE FOR THIS MILESTONE: 19 20 GENERAL 21 In preparation of the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
17 18 ITEMS TO COMPLETE FOR THIS MILESTONE: 19 20 GENERAL 21 In preparation of the annual audit, make calculations (green tab) and prepare appropriate adjusting entries and 22 post to the trial balance workbook (red tab) 26 27 28 29 30 PENSION PAYOUTS Calculate pension liability 22222222 23 24 CAPITAL LEASES 25 Calculate capital lease obligations Prepare appropriate adjusting entries 31 Calculate health insurance liability 32 33 ADJUSTING ENTRIES 34 35 Prepare adjusting entries for capital lease obligations 36 Prepare adjusting entries for pension payouts 37 38 39 MANAGEMENT BRIEF-Prepare in a Word document-see the rubric for milestone 2 A. Explain the implications of capital lease based on how it relates to the company's equipment usage. B. Explain how postretirement plans will impact the company financially in the short and long term, using 40 examples from the accounting workbook to support claims. 41 42 43 FINANCIAL INFORMATION FOR THIS MILESTONE 44 45 Postretirement Benefits Peyton Approved has revised its postretirement plan. It will now provide health insurance to retired employees. 46 Management has requested that you report the short- and long-term financial implications of this. 47 48 485 The company is currently employing 60, and actuaries estimate that the company has a pension liability of $107,041.70. The estimated cost of retired employees' health insurance is $43,718.91. 49 Prepare adjusting entries for the pension liability and the health insurance liability 50 51 Leases 52 Six ovens were rented on December 31, with $20,000 charged to rent expense. The lease runs for 6 years with an implicit interest rate of 5%. At the end of the 6 years, Peyton will own them. Make any necessary adjusting entries. 53 PEYTON APPROVED TRIAL BALANCE As of December 31, 2017 Cash Marketable Securities Dr 1,488,999.34 5,500,000.00 Accounts Receivable 7,092,495.88 Baking Supplies 1,605,098.52 Adjusting entries Cr Dr Cr Dr 1,488,999.34 Cr 265,000.00 1 5,235,000.00 7,092,495.88 1,605,098.52 Merchandise Inventory Prepaid Rent Prepaid Insurance Misc. Supplies 128,152.63 71,877.07 207,834.14 17,647.42 128,152.63 71,877.07 207,834.14 17,647.42 Land 250,000.00 Building 1,250,000.00 250,000.00 1,250,000.00 Baking Equipment 2,254,140.00 6 $106,590 2,360,729.53 Accumulated Depreciation 328,282.00 328,282.00 Patent Accounts Payable 1,555,212.85 Wages Payable 250,203.31 Interest Payable 21,888.22 Current Portion of Bonds Payable 1,000,000.00 1,555,212.85 250,203.31 21,888.22 1,000,000.00 Income Taxes Currently Payable 1,042,118.16 3 52,325.25 Accrued Pension Liability 375.00 2 107,041.70 4 990,167.91 107,041.70 Accrued Employees Health Insurance 43,718.91 5 43,718.91 Lease Liability $86,590 6 86,589.53 Deferred Tax Liability 52,325.25 3 Bonds Payable 4,000,000.00 Preferred Stock 500,000.00 52,325.25 4,000,000.00 500,000.00 Common Stock 1,750,000.00 1,750,000.00 Beginning Retained earnings 2,213,122.59 2,213,122.59 Dividends - Preferred 50,000.00 Dividends - Common 5,250,000.00 Bakery Sales Merchandise Sales 33,881,157.15 124,795.80 50,000.00 5,250,000.00 33,881,157.15 124,795.80 Cost of Goods Sold - Bal 10,954,907.36 10,954,907.36 88,994.79 Cost of Goods Sold - Mer Rent Expense 1,576,731.95 Wages Expense 2,604,526.23 Misc. Supplies Expense 20,000.00 6 88,994.79 1,556,731.95 2,604,526.23 263,224.56 Repairs and Maintenanc Business License Expen Misc. Expense Depreciation Expense 263,224.56 47,353.05 211,757.65 141,171.08 47,353.05 211,757.65 634,520.00 Insurance Expense 112,937.69 Advertising Expense 160,413.49 Interest Expense 484,703.27 Telephone Expense 50,821.34 141,171.08 634,520.00 112,937.69 160,413.49 484,703.27 50,821.34 Pension Expense 4 107,041.70 Retired Employees Health Ins. 5 43,718.91 107,041.70 43,718.91 Patent Amortization - Unrealized Gain/(Loss) on Marketable Securities Held for Sale 1 265,000.00 265,000.00 Income Taxes 4,168,472.62 2 375.00 4,168,847.62 HOME Telephone Expe Pension Expense 4 107,041.70 Retired Employees Health Ins. 5 43,718.91 Patent Amortization Unrealized Gain/(Loss) on Marketable Securities Held for Sale 1 265,000.00 Income Taxes 4,168,472.62 2 375.00 46,666,780.08 46,666,780.08 107,041.70 43,718.91 265,000.00 4,168,847.62 575,050.39 575,050.39 46,904,505.23 46,904,505.22 Unrealized loss on marketable (1) securities milestone 1 Adjustment to income taxes for $1,500 meal expense at (2) 25% tax rate Recorded deferred taxes for timing difference. Book vs. MACRS (3) depreciation. Pension liability and (4) expense Health insurance liability and (5) expense Adjust incorrect entry to rent expense $20,000. Record baking equipment $106,590. Lease liability now reflects lease obligation. ($106,590- (6) $20,000) milestone 1 milestone 1 milestone 2 milestone 2 milestone 2 17 18 ITEMS TO COMPLETE FOR THIS MILESTONE: 19 20 GENERAL 21 In preparation of the annual audit, make calculations (green tab) and prepare appropriate adjusting entries and 22 post to the trial balance workbook (red tab) 26 27 28 29 30 PENSION PAYOUTS Calculate pension liability 22222222 23 24 CAPITAL LEASES 25 Calculate capital lease obligations Prepare appropriate adjusting entries 31 Calculate health insurance liability 32 33 ADJUSTING ENTRIES 34 35 Prepare adjusting entries for capital lease obligations 36 Prepare adjusting entries for pension payouts 37 38 39 MANAGEMENT BRIEF-Prepare in a Word document-see the rubric for milestone 2 A. Explain the implications of capital lease based on how it relates to the company's equipment usage. B. Explain how postretirement plans will impact the company financially in the short and long term, using 40 examples from the accounting workbook to support claims. 41 42 43 FINANCIAL INFORMATION FOR THIS MILESTONE 44 45 Postretirement Benefits Peyton Approved has revised its postretirement plan. It will now provide health insurance to retired employees. 46 Management has requested that you report the short- and long-term financial implications of this. 47 48 485 The company is currently employing 60, and actuaries estimate that the company has a pension liability of $107,041.70. The estimated cost of retired employees' health insurance is $43,718.91. 49 Prepare adjusting entries for the pension liability and the health insurance liability 50 51 Leases 52 Six ovens were rented on December 31, with $20,000 charged to rent expense. The lease runs for 6 years with an implicit interest rate of 5%. At the end of the 6 years, Peyton will own them. Make any necessary adjusting entries. 53 PEYTON APPROVED TRIAL BALANCE As of December 31, 2017 Cash Marketable Securities Dr 1,488,999.34 5,500,000.00 Accounts Receivable 7,092,495.88 Baking Supplies 1,605,098.52 Adjusting entries Cr Dr Cr Dr 1,488,999.34 Cr 265,000.00 1 5,235,000.00 7,092,495.88 1,605,098.52 Merchandise Inventory Prepaid Rent Prepaid Insurance Misc. Supplies 128,152.63 71,877.07 207,834.14 17,647.42 128,152.63 71,877.07 207,834.14 17,647.42 Land 250,000.00 Building 1,250,000.00 250,000.00 1,250,000.00 Baking Equipment 2,254,140.00 6 $106,590 2,360,729.53 Accumulated Depreciation 328,282.00 328,282.00 Patent Accounts Payable 1,555,212.85 Wages Payable 250,203.31 Interest Payable 21,888.22 Current Portion of Bonds Payable 1,000,000.00 1,555,212.85 250,203.31 21,888.22 1,000,000.00 Income Taxes Currently Payable 1,042,118.16 3 52,325.25 Accrued Pension Liability 375.00 2 107,041.70 4 990,167.91 107,041.70 Accrued Employees Health Insurance 43,718.91 5 43,718.91 Lease Liability $86,590 6 86,589.53 Deferred Tax Liability 52,325.25 3 Bonds Payable 4,000,000.00 Preferred Stock 500,000.00 52,325.25 4,000,000.00 500,000.00 Common Stock 1,750,000.00 1,750,000.00 Beginning Retained earnings 2,213,122.59 2,213,122.59 Dividends - Preferred 50,000.00 Dividends - Common 5,250,000.00 Bakery Sales Merchandise Sales 33,881,157.15 124,795.80 50,000.00 5,250,000.00 33,881,157.15 124,795.80 Cost of Goods Sold - Bal 10,954,907.36 10,954,907.36 88,994.79 Cost of Goods Sold - Mer Rent Expense 1,576,731.95 Wages Expense 2,604,526.23 Misc. Supplies Expense 20,000.00 6 88,994.79 1,556,731.95 2,604,526.23 263,224.56 Repairs and Maintenanc Business License Expen Misc. Expense Depreciation Expense 263,224.56 47,353.05 211,757.65 141,171.08 47,353.05 211,757.65 634,520.00 Insurance Expense 112,937.69 Advertising Expense 160,413.49 Interest Expense 484,703.27 Telephone Expense 50,821.34 141,171.08 634,520.00 112,937.69 160,413.49 484,703.27 50,821.34 Pension Expense 4 107,041.70 Retired Employees Health Ins. 5 43,718.91 107,041.70 43,718.91 Patent Amortization - Unrealized Gain/(Loss) on Marketable Securities Held for Sale 1 265,000.00 265,000.00 Income Taxes 4,168,472.62 2 375.00 4,168,847.62 HOME Telephone Expe Pension Expense 4 107,041.70 Retired Employees Health Ins. 5 43,718.91 Patent Amortization Unrealized Gain/(Loss) on Marketable Securities Held for Sale 1 265,000.00 Income Taxes 4,168,472.62 2 375.00 46,666,780.08 46,666,780.08 107,041.70 43,718.91 265,000.00 4,168,847.62 575,050.39 575,050.39 46,904,505.23 46,904,505.22 Unrealized loss on marketable (1) securities milestone 1 Adjustment to income taxes for $1,500 meal expense at (2) 25% tax rate Recorded deferred taxes for timing difference. Book vs. MACRS (3) depreciation. Pension liability and (4) expense Health insurance liability and (5) expense Adjust incorrect entry to rent expense $20,000. Record baking equipment $106,590. Lease liability now reflects lease obligation. ($106,590- (6) $20,000) milestone 1 milestone 1 milestone 2 milestone 2 milestone 2
Expert Answer:
Posted Date:
Students also viewed these finance questions
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-4. Ivan and Irene paid the following in 2012 (all by check or can otherwise be...
-
Gooran, Inc., has current assets of $240 million; property, plant, and equipment of $380 million; and other assets totaling $120 million. Current liabilities are $170 million and long-term...
-
The benefits of many deductions, credits, or other benefits are limited to taxpayers with Adjusted Gross Income below certain limits. a. Explain how the limitation (phaseout) process works. b. Give...
-
Use a Venn diagram to illustrate the set of all months of the year whose names do not contain the letter R in the set of all months of the year.
-
Harold Brodkey plans to apply sequential sampling to the receiving controls used by the Ozyck Corporation, a December 31, 1999 year end manufacturer and supplier of home lighting fixtures. Based on a...
-
The post-closing trial balance of Storey Corporation at December 31, 2015, contains the following stockholders equity accounts. Preferred Stock (15,000 shares issued) ............$ 750,000 Common...
-
LaFontaine Accessories makes a variety of computer bags, carrier bags, and so on. LaFontaine uses activity-based costing for its products. The production manager has identified the following cost...
-
All of these are due diligence requirements for a paid preparer who files a federal return for a taxpayer claiming one or more refundable credits EXCEPT: Complete and file Form 8867, Paid Preparer's...
-
Suppose the U.S. Treasury auctions $10 billion of 90-day bills, and the competitive bids are $6 billion at 1.670 %, $3 billion at 1.673%, and $2 billion at 1.675%. Noncompetitive bids are $1 billion...
-
What is data redundancy? What are the problems with data redundancy in file system. How is it solved/addressed in DBMS?
-
Two horizontal plates produce an electric field with a strength 6x10 3 N/C up. The two plates are 13 cm long and separated by 3cm. An electron is fired at an angle 45 degrees at a speed of 1.7x10 7...
-
At what temperature will a gas at a density of 1 g cm -3 composed of (mass fractions) 50% H I, 20% He II, and 30% C IV produce one atmosphere of pressure?
-
What is data redundancy, and which characteristics of the file system can lead to it? What can a database administrator do to avoid data redundancy? please explain everything clearly and provide...
-
How will "Generation Z" employees entering the workforce impact business communication?
-
Why is a help desk and production support critical to system implementations? Discuss its interrelationship with the problem management and reporting system.
-
A university is deciding between two meal plans. One plan charges a fixed fee of \($600\) per semester and allows students to eat as much as they want. The other plan charges a fee based on the...
-
Evaluate this statement: You are a natural athlete, an attractive person who learns easily and communicates well. Clearly, you can do everything better than your friends and acquaintances. As a...
-
You have waited 30 minutes in a line for the Star Tours ride at Disneyland. You see a sign that says, From this point on, your wait is 45 minutes. You must decide whether to remain in the line or to...
Study smarter with the SolutionInn App