A. Identify sources of other comprehensive income not included in net income.
B. Explain rationale for the inclusion as comprehensive income (as opposed to net income) of nondisclosure within notes.
C. Evaluate impacts of company goals and finances for their implications on stockholder equity, using financial information to support claims.
D. Evaluate impacts of company goals and finances for their implications on retained earnings per share, using financial information to support claims.
E. Explain the impact of issuing preferred stock or debt for determining changes to equity structures.
F. Assess the impact of changes to current tax structure for articulating changes relevant to the company.
PEYTON APPROVED TRIAL BALANCE As of December 31, 2017 Adjusting entries Dr Cr Dr Cr Dr Cr Cash 1,488 999.34 1,488,999.34 Marketable Securities 5,500,000 265,000 5,235,000 Accounts Receivable 7.092.495.88 7,092,495.88 Baking Supplies 1,605.098.52 1,605,098.52 Merchandise Inventory 128,152.63 28,152.63 Prepaid Rent 71.877.07 71,877.07 Prepaid Insurance 207 834.14 207,834.14 Misc. Supplies 17.647.42 17,647.42 Land 250,000 250,000 Building 1,250,000 1.250,000 Baking Equipment 2.254,140 (4) 106,589.533 2,387.729.533 27,600 Accumulated Depreciation 328,282 328,282 Patent (8) 50,000 (8) 2,500 47.500 Accounts Payable 1.555,212.85 1.555,212.85 Wages Payable 250.203.31 250,203.31 Interest Payable 21,888.22 21,868.22 Current Portion of Bonds Payable 1,000,000 1,000,000 Income Taxes Currently Payable 1,042, 118.16 (2) 375 1.042.493.16 Accrued Pension Liability 107,041.7 107 041.7 Accrued Employees Health Insurance 43,718.91 43,718.91 Lease Liability 106 589.533 106,589,533 (5) 20,000 -20,000 Deferred Tax Liability 52,325.25 52.325.25 Bonds Payable 4,000,000 4,000,000 Preferred Stock 500,000 500,000 Common Stock 1,750,000 1,750,000 Beginning Retained earnings 2.213.122.59 2.213.122.59 Dividends - Preferred 50,000 50,000 Dividends - Common 5,250,000 5,250,000 Bakery Sales 33,881,157.15 33,681,157.15 Merchandise Sales 124.795.8 124.795.8 Cost of Goods Sold - Baked 10,954,907.36 10,954,907.36 Cost of Goods Sold - Merchandise 88,994.79 88,994.79 Rent Expense 1.576,731.95 (5) 20,000 1.556,731.95 Wages Expense 2.604.526.23 2,604,526.23 Misc. Supplies Expense 263 224.56 263,224.56 Repairs and Maintenance 47,353.05 27,000 20,353.05 Business License Expense 211.757.65 211,757.65 Misc. Expense 141.171.08 (8) 50.000 91,171.08 Depreciation Expense 634,520 634,520 Insurance Expense 112,937.69 112,937.69 Advertising Expense 160,413.49 160,413.49 Interest Expense 484.703.27 484,703.27 Telephone Expense 50.821.34 50,821.34 Pension Expense (6) 107 041.7 107,041.7 Retired Employees Health Ins. (6) 43,718.91 43,718.91 Patent Amortization 2,500 2,500 Unrealized Gain/(Loss) on Marketable Securities Held for Sale 265,000 265,000 Income Taxes 4.168,472.622 (2) 375 4,168,847.622 Deferred tax Expense 52,325.25 52,325.25 46,666,780.082 46,666,780.08 674,550.393 674,550.393 46,956,830.476 46,956,830.473 (1) To record Unrealized Loss on Marketable Securities milestone 1 (2) To adjust income taxes for correct effective rate milestone 1 $1,500 Meals permanent difference X 25%% (3) To record Deffered taxes for timing difference on book milestone 1 vs MACRS Depreciation 209,301 (4) To record assets taken on leasse 106,589.533 milestone 2 (5) To record first lease payment and interest expense and milestone 2 depreciation expense (6) To record pension Liability To record health insurance liability milestone 2 (7) To capitalize repair of packing Machine 27,000 final (8) To Record cost of patent by rectifying Miscellaneous final Expense and amortizing patent for year Cost of Patent 50,000 Amortization 2,500Peyton Approved Income Statement For Year Ended 12/31/20XX Bakery Sales 33,881,157.15 Merchandise Sales 124,795.8 Total Revenues 34,005,952.95 Cost of Goods Sold - Baked 10,954,907.36 Cost of Goods Sold - Merchandise 88,994.79 Total Cost of Goods Sold 11,043,902.15 Gross Profit 22,962,050.8 Operating Expenses: Rent Expense 1,576,731.95 Wages Expense 2,604,526.23 Misc. Supplies Expense 263,224.56 Repairs and Maintenance 47,353.05 Business License Expense 211,757.65 Misc. Expense 141, 171.08 Depreciation Expense 634,520 Insurance Expense 112,937.69 Advertising Expense 160,413.49 Interest Expense 484,703.27 Telephone Expense 50,821.34 Total Operating Expenses: 6,288,160.31 Earnings before Income Tax 16,673,890.49 16,675,390.49 Income Taxes 4,168,472.623 4,168,847.623 Net Income 12,505,417.87Peyton Approved Balance Sheet As of December 31, 20XX Assets Liabilities and Owners' Equity Current Assets: Current Liabilities Cash 1,488,999.34 Accounts Payable 1,555,212 85 Marketable Securities 5,500,000.00 Wages Payable 250,203.31 Accounts Receivable 7,092,495.86 Interest Payable 21,808 22 Baking Supplies 1,605,098.52 Current Portion of Bonds Payable 1,000,000 Merchandise Inventory 128, 152 63 Income taxes currently payable 1,042,118.16 Prepaid Rent 71,877.07 Prepaid Insurance 207,834.14 Misc. Supplies 17,647.42 Total Current Assets 16,112,105.00 Total Current Liabilities 3,869,422.54 Long Term Liabilities: Long Term/Fixed Assets: Bonds Payable 10%, 20 year 4,000,000 Land 250,000 Building 1,250,000 Baking Equipment 2,254,140.00 Total Long Term Liabilities: 4,000.000 Accumulated Depreciation -328,282.00 Net Fixed assets 3,425,858 Total Liabilities 7,869,422.54 10 authorized. 500.000 5,000 issued, 10%, $100 par value) Common Stock - (2,900,000 shares 1,750,000 authorized, 1,750,000 issued, $1 par) Retained Earnings 9,418,540.458 Total Equity 11,668,540.46 Total Assets: 19,537.963 Total Liabilities & Equity 19,537.963
