Explain the implications of capital lease based on how it relates to the companys equipment usage. Explain how postretirement plans will impact the company financially in the short and long term, using examples from the accounting workbook to support claims.

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.

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. Prepare adjusting entries for the pension liability and the health insurance liability