HELP!

1. Calculate capital lease obligations for determining debt and depreciation.
2. Calculate pension payouts to determine the companys financial obligations.
3. Prepare adjusting entries for postretirement benefits and capital lease obligations.

Also,

In the trial balance worksheet, how do I reflect the below changes?

• On the worksheet adjustments, adjustment 2, it should be $1,500 x25% tax rate = $375 Debit to income taxes, credit to income tax currently payable.
• On adjustment 3, it should be a debit to income tax currently payable and a credit to deferred tax liability for $52,325.25

Thanks so much, in advance!

FINANCIAL INFORMATION FOR THIS MILESTONE Postretirement Benefits Peyton Approved has revised its postretirement plan. It will now provide health insurance to retired employees. Management has requested that you report the short- and long-term financial implications of this. - 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 Leases - 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. Peyton Approved Financial Information Comprehensive Income Items - Marketable securities on the balance sheet at a cost of $5,500,000 are available-for-sale - Market value at the balance sheet date is $5,235,000 - Prepare the adjusting entry to record the unrealized loss and include in comprehensive income. Tax Information and Implications - $1,500 in meal and entertainment expenses show as a permanent difference for tax. This item was not previously included in the income tax calculation. Prepare the necessary adjusting entry. - The company uses straight line depreciation for book and MACRS depreciation for the tax return. - MACRS depreciation was $209,301 higher than book. The tax associated with book depreciation was previously recorded to income tax expense and current income tax payable. Prepare the adjusting entry for the deferred tax. - There have been recent tax structure changes that could impact the company. Peyton Approved has been a C Corp since the beginning of these changes. Peyton provides for taxes at 25% of pretax income ( 20% Federal, 5% state). Potentially Dilutive Securities Peyton has the following potential dilutive securities: $4,000,000 in bonds payable 10%,20 year. Every $1,000 bond can convert to 5 shares of common stock. Preferred stock-Every share issued can convert to 1 share of common stock. Expansion Plans The company is adding two storefront locations and launching a new marketing campaign, which is estimated to bring in 20,000 new customers over the next six months. The company expects this expansion will require an additional $1,000,000 of capital and generate an additional $600,000 of after-tax profit. The financing options are: 1. Issuing an additional $1,000,000 of 10%,100-par convertible preferred stock (same class as is currently outstanding) 2. Issuing an additional $1,000,000 of 8% convertible bonds (same terms as the existing issue) 3. Issuing $500,000 each of preferred stock and bonds Postretirement Benefits Peyton Approved has revised its postretirement plan. It will now provide health insurance to retired employees. Management has requested that you report the short- and long-term financial implications of this. - 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. Leases - 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. Other items - On December 31, 20XX, the company repaired a packaging machine at cost of $27,000.00. It is expected that the repair will extend the life of the machine by four years. No depreciation is necessary this year. The initial entry recorded the repair to the repair and maintenance account. - The company spent $50,000 to obtain and defend a patent for its formula for dog treats. The patent took effect on 1/1/20XX and provides 20 years of protection. The $50,000 amount was incorrectly charged to Misc. Expense - Make any necessary adjusting entries. PEYTON APPAOVED TRAL BALANCE (11) miestone 1 [2] milestone 1 (3) milestone 1 (4] milestone 2 [5] milestone 2 (6) milestone 2 Pension parouts Peyton Approved Balance Sheet As of December 31, 20XX Assets Liabilities and Owners" Equity Current Assets: CashMarketableSecuritiesAccountsReceivableBakingSuppliesMerchandiselrventoryPrepaidRentPrepaidInsuranceMisc.Supples1,488,999.345,500,000.007,092,495.881,605,098.52128,152.6371,877.07207,834.1417,647.42 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 4,000,000.00 Land Building Baking Equipment 1,250,000.00 Total Long Term Liabilities: Accumulated Depreciation 328.282.00 Net Fixed assets 3,425,858,00 Total Liabilities: 7,869,422,54 Preferred Stock - (10,000 authorized, 500,000.00 5,000 issued, 10%,$100 par value) Common Stock - (2,000,000 shares 1,750,000.00 authorized, 1,750,000 issued, $1 par) Retained Earmings 9,418,540,46 Total Equity 11,668,540.46 Total Assets: 19,537,963.00 Total Liabilities \& Equity 19,537,963.00 Peyton Approved Income Statement For Year Ended 123120xX \begin{tabular}{|l|r|r|} \hline Bakery Sales & $33,881,157.15 & \\ \hline Merchandise Sales & 124,795.80 & \\ \hline Total Revenues & & 34,005,952.95 \\ \hline Cest of Gosds Sold - Baked & 10,954,907.36 & \\ \hline Cest of Gosds Sold - Merchandise & 88,994.79 & \\ \hline Total Cost of Goods Sold & & 11,043,902.15 \\ \hline Gross Protit & 22,962,050.80 \\ \hline \end{tabular} Operating Expenses: \begin{tabular}{|lr|} \hline Rent Expense & 1,576,731.95 \\ Wapes Expense & 2,604,526.23 \\ \hline Misc. Supples Expense & 263,224.56 \\ \hline Repairs and Maintenance & 47,353.05 \\ \hline Eusiness License Expense & 211,757,65 \\ \hline Misc. Expense & 141,171,08 \\ \hline Depreciaton Expense & 634,520.00 \\ \hline Insurance Expense & 112,937,69 \\ \hline Advertising Expense & 160,413.49 \\ \hline Interest Expense & 484,703.27 \\ \hline Telephone Expense & 50,821,34 \\ \hline Total Operating Expenses: & \\ \hline \end{tabular} Earnings before Income Tax 16,673,890.49 16,675,390.49 Income Taxes 4.168.472.62 4.768 .847 .62 Net lnoo=e 12.505.417.87 FINANCIAL INFORMATION FOR THIS MILESTONE Postretirement Benefits Peyton Approved has revised its postretirement plan. It will now provide health insurance to retired employees. Management has requested that you report the short- and long-term financial implications of this. - 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 Leases - 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. Peyton Approved Financial Information Comprehensive Income Items - Marketable securities on the balance sheet at a cost of $5,500,000 are available-for-sale - Market value at the balance sheet date is $5,235,000 - Prepare the adjusting entry to record the unrealized loss and include in comprehensive income. Tax Information and Implications - $1,500 in meal and entertainment expenses show as a permanent difference for tax. This item was not previously included in the income tax calculation. Prepare the necessary adjusting entry. - The company uses straight line depreciation for book and MACRS depreciation for the tax return. - MACRS depreciation was $209,301 higher than book. The tax associated with book depreciation was previously recorded to income tax expense and current income tax payable. Prepare the adjusting entry for the deferred tax. - There have been recent tax structure changes that could impact the company. Peyton Approved has been a C Corp since the beginning of these changes. Peyton provides for taxes at 25% of pretax income ( 20% Federal, 5% state). Potentially Dilutive Securities Peyton has the following potential dilutive securities: $4,000,000 in bonds payable 10%,20 year. Every $1,000 bond can convert to 5 shares of common stock. Preferred stock-Every share issued can convert to 1 share of common stock. Expansion Plans The company is adding two storefront locations and launching a new marketing campaign, which is estimated to bring in 20,000 new customers over the next six months. The company expects this expansion will require an additional $1,000,000 of capital and generate an additional $600,000 of after-tax profit. The financing options are: 1. Issuing an additional $1,000,000 of 10%,100-par convertible preferred stock (same class as is currently outstanding) 2. Issuing an additional $1,000,000 of 8% convertible bonds (same terms as the existing issue) 3. Issuing $500,000 each of preferred stock and bonds Postretirement Benefits Peyton Approved has revised its postretirement plan. It will now provide health insurance to retired employees. Management has requested that you report the short- and long-term financial implications of this. - 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. Leases - 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. Other items - On December 31, 20XX, the company repaired a packaging machine at cost of $27,000.00. It is expected that the repair will extend the life of the machine by four years. No depreciation is necessary this year. The initial entry recorded the repair to the repair and maintenance account. - The company spent $50,000 to obtain and defend a patent for its formula for dog treats. The patent took effect on 1/1/20XX and provides 20 years of protection. The $50,000 amount was incorrectly charged to Misc. Expense - Make any necessary adjusting entries. PEYTON APPAOVED TRAL BALANCE (11) miestone 1 [2] milestone 1 (3) milestone 1 (4] milestone 2 [5] milestone 2 (6) milestone 2 Pension parouts Peyton Approved Balance Sheet As of December 31, 20XX Assets Liabilities and Owners" Equity Current Assets: CashMarketableSecuritiesAccountsReceivableBakingSuppliesMerchandiselrventoryPrepaidRentPrepaidInsuranceMisc.Supples1,488,999.345,500,000.007,092,495.881,605,098.52128,152.6371,877.07207,834.1417,647.42 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 4,000,000.00 Land Building Baking Equipment 1,250,000.00 Total Long Term Liabilities: Accumulated Depreciation 328.282.00 Net Fixed assets 3,425,858,00 Total Liabilities: 7,869,422,54 Preferred Stock - (10,000 authorized, 500,000.00 5,000 issued, 10%,$100 par value) Common Stock - (2,000,000 shares 1,750,000.00 authorized, 1,750,000 issued, $1 par) Retained Earmings 9,418,540,46 Total Equity 11,668,540.46 Total Assets: 19,537,963.00 Total Liabilities \& Equity 19,537,963.00 Peyton Approved Income Statement For Year Ended 123120xX \begin{tabular}{|l|r|r|} \hline Bakery Sales & $33,881,157.15 & \\ \hline Merchandise Sales & 124,795.80 & \\ \hline Total Revenues & & 34,005,952.95 \\ \hline Cest of Gosds Sold - Baked & 10,954,907.36 & \\ \hline Cest of Gosds Sold - Merchandise & 88,994.79 & \\ \hline Total Cost of Goods Sold & & 11,043,902.15 \\ \hline Gross Protit & 22,962,050.80 \\ \hline \end{tabular} Operating Expenses: \begin{tabular}{|lr|} \hline Rent Expense & 1,576,731.95 \\ Wapes Expense & 2,604,526.23 \\ \hline Misc. Supples Expense & 263,224.56 \\ \hline Repairs and Maintenance & 47,353.05 \\ \hline Eusiness License Expense & 211,757,65 \\ \hline Misc. Expense & 141,171,08 \\ \hline Depreciaton Expense & 634,520.00 \\ \hline Insurance Expense & 112,937,69 \\ \hline Advertising Expense & 160,413.49 \\ \hline Interest Expense & 484,703.27 \\ \hline Telephone Expense & 50,821,34 \\ \hline Total Operating Expenses: & \\ \hline \end{tabular} Earnings before Income Tax 16,673,890.49 16,675,390.49 Income Taxes 4.168.472.62 4.768 .847 .62 Net lnoo=e 12.505.417.87