I have errors on 2 of my adjusting entries. Can anyone help with the correct adjusting entries for this milestone? You can see my answers on the trial balance, 2 of which are incorrect. I am looking for help with the correct adjusting entries. 
ACC 309 Final Project Scenario Peyton Approved Overview Imagine that you are working as a financial accountant for Peyton Approved, and you have been charged with revising its financial information. The company has experienced tremendous growth in the past three years, and it is now a well-known bakery chain for pet products. They have become a publicly traded company and have several locations that they deliver to regionally You will find the company's financial information in the Peyton Approved Balance Sheet and Income Statement. This document will need revisions and appropriate notes added in order to prepare for the year-end audit accordingly. In addition to ensuring that the balance sheet is ready for the year-end audit, you will address other major areas of need, including: Assessing tax implications Evaluating and explaining stockholder equity Accounting for postretirement benefits [The amounts would be determined by actuaries.) Assessing impacts of leases 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 55,235,00 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. 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. Prepare the adjusting entry for the deferred tax. There have been recent tax structure changes the 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). Stockholder Equity Peyton Approved prides itself on transparency with shareholders and investors. The company has added two storefront locations and launched a new marketing campaign, which is estimated to bring in 20,000 new customers over the next 6 months. The company expects this expansion will require an additional $1,000,000 of capital and generate an additional S600,000 of after-tax profit. The options are: 1) Issuing an additional $1,000,000 of 10%, 100-par convertible preferred stock (same class as is currently outstanding) 2) Issue an additional 51,000,000 of 8% convertible bonds (same terms as the existing issue) 3) $500,000 each of preferred stock and bonds Determine the impact on earnings per share for each option. 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 520,000 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, 20XC, 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 company spent 550,000 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. Prepare adjusting entries for unrealized loss and Prepare adjusting entries for tax issues FINANCIAL INFORMATION FOR THIS MLESTONE 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 $5,235,00 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. 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. Prepare the adjusting entry for the deferred tax. There have been recent tax structure changes the 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). Stockholder Equity Peyton Approved prides itself on transparency with shareholders and investors. The company has added two storefront locations and launched a new marketing campaign, which is estimated to bring in 20,000 new customers over the next 6 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 options are: 1) Issuing an additional $1,000,000 of 10%, 100-par convertible preferred stock (same class as is currently outstanding) 2) Issue an additional $1,000,000 of 8% convertible bonds (same terms as the existing issue) 3) $500,000 each of preferred stock and bonds Formatting Clipboard table Styles . Alignment Number H I K L M N E PEYTON APPROVED TRIAL BALANCE As of December 31, 2017 HOME Adjusting entries Dr 265,000.00 Cash Marketable Securities Accounts Receivable Baking Supplies Merchandise Inventory Prepaid Rent Prepaid Insurance Misc. Supplies Land Building Baking Equipment 1,488.999.34 5,500,000.00 7,092,495.88 1,605,098.52 128,152.63 71,877.07 207.834.14 17.647.42 250,000.00 1,250,000.00 2,254,140.00 1,488,999.34 5,235,000.00 7,092,495.88 1,605,098.52 128,152.63 71.877.07 207,834.14 17,647.42 250,000.00 1,250,000.00 2,254,140.00 328,282,00 328,282.00 Accumulated Depreciation Patent Accounts Payable Wages Payable Interest Payable Current Portion of Bonds Payable Income Taxes Currently Payable Accrued Pension Liability Accrued Employees Health Insurance Lease Liability 1,555,212.85 250,203.31 21.888.22 1,000,000.00 1,042,118.16 1,555, 212.85 250,203.31 21,888.22 1,000,000.00 1,160,318.41 118,200.25 Instructions. Milestone Trial Balance 2017 Instructions Milestone Milestone calculations Instructions final Prel Balance Sheet 2017 Prel Income Statement 20 Type here to search Number HI 118,575.25 4,000,000.00 500,000.00 1,750,000.00 2,213,122.59 118,575.25 4,000,000.00 500,000.00 1.750,000.00 2,213,122.59 50,000.00 5,250,000.00 50,000.00 5,250,000.00 33,881,157.15 124,795.80 33,881,157.15 124,795.80 Deferred Tax Liability Bonds Payable Preferred Stock Common Stock Beginning Retained earnings Dividends - Preferred Dividends - Common Bakery Sales Merchandise Sales Cost of Goods Sold - Bakec Cost of Goods Sold - Merch Rent Expense Wages Expense Misc. Supplies Expense Repairs and Maintenance Business License Expense Misc. Expense Depreciation Expense Insurance Expense Advertising Expense Interest Expense Telephone Expense Pension Expense Retired Employees Health Ins Patent Amortization 10,954,907.36 88,994.79 1,576,731.95 2,604,526.23 263,224.56 47,353.05 211,757.65 141,171.08 634,520.00 112,937.69 160,413.49 484,703.27 50,821.34 10,954,907.36 88,994.79 1,576,731.95 2,604,526.23 263,224.56 47.353.05 211,757.65 141,171.08 634,520.00 112,937.69 160,413.49 484,703.27 50,821.34 Instructions - Milestone Trial Balance 2017 Instructions. Milestone 2 Milestone 2 calculations Instructions - Final Prel Balance Sheet 2017 Prel Income State Type here to search ACC 309 Final Project Student Workbook (1) - Excel MandyNe O A 2 Home Insert Page Layout Formulas Data Review View Help Search General Cut Arial Copy Format Painter BIU. 12 . A A = = .0.A. ESSE Wrap Text Merge & Center $ -% -48 Conditional Format as Cell Formatting Table Styles Insert Delete Format - Clear Alignment N Depreciation Expense Insurance Expense Advertising Expense Interest Expense Telephone Expense Pension Expense Retired Employees Health Ins. Patent Amortization D 634,520.00 112,937.69 160,413.49 484,703.27 50,821.34 634,520.00 112,937.69 160,413.49 484,703.27 50,821.34 Unrealized Gain/(Loss) on Marketable Securities Held for Sale 265,000.00 265,000.00 4,168,472.62 Income Taxes Deferred tax Expense 118,200.25 118,575.25 4,286,672.87 118,575.25 46,666,780.08 46,666,780.08 501,775.50 501,775,50 46,903,555.58 46,903,555.58 (1) $1,500 included in meal and entertainment expenses will not have an milestone 1 (2) MACRS Depreciation used for tax is higher by $209,301 so expenses milestone 1 milestone 1 milestone 2 milestone 2 milestone 2 ndalons. Milestone Trial Balance 2017 Instructions - Milestone 2 Milestone 2 calculations Instructions final Prel Balance Sheet 2017 Pret income ACC 309 Final Project Scenario Peyton Approved Overview Imagine that you are working as a financial accountant for Peyton Approved, and you have been charged with revising its financial information. The company has experienced tremendous growth in the past three years, and it is now a well-known bakery chain for pet products. They have become a publicly traded company and have several locations that they deliver to regionally You will find the company's financial information in the Peyton Approved Balance Sheet and Income Statement. This document will need revisions and appropriate notes added in order to prepare for the year-end audit accordingly. In addition to ensuring that the balance sheet is ready for the year-end audit, you will address other major areas of need, including: Assessing tax implications Evaluating and explaining stockholder equity Accounting for postretirement benefits [The amounts would be determined by actuaries.) Assessing impacts of leases 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 55,235,00 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. 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. Prepare the adjusting entry for the deferred tax. There have been recent tax structure changes the 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). Stockholder Equity Peyton Approved prides itself on transparency with shareholders and investors. The company has added two storefront locations and launched a new marketing campaign, which is estimated to bring in 20,000 new customers over the next 6 months. The company expects this expansion will require an additional $1,000,000 of capital and generate an additional S600,000 of after-tax profit. The options are: 1) Issuing an additional $1,000,000 of 10%, 100-par convertible preferred stock (same class as is currently outstanding) 2) Issue an additional 51,000,000 of 8% convertible bonds (same terms as the existing issue) 3) $500,000 each of preferred stock and bonds Determine the impact on earnings per share for each option. 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 520,000 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, 20XC, 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 company spent 550,000 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. Prepare adjusting entries for unrealized loss and Prepare adjusting entries for tax issues FINANCIAL INFORMATION FOR THIS MLESTONE 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 $5,235,00 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. 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. Prepare the adjusting entry for the deferred tax. There have been recent tax structure changes the 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). Stockholder Equity Peyton Approved prides itself on transparency with shareholders and investors. The company has added two storefront locations and launched a new marketing campaign, which is estimated to bring in 20,000 new customers over the next 6 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 options are: 1) Issuing an additional $1,000,000 of 10%, 100-par convertible preferred stock (same class as is currently outstanding) 2) Issue an additional $1,000,000 of 8% convertible bonds (same terms as the existing issue) 3) $500,000 each of preferred stock and bonds Formatting Clipboard table Styles . Alignment Number H I K L M N E PEYTON APPROVED TRIAL BALANCE As of December 31, 2017 HOME Adjusting entries Dr 265,000.00 Cash Marketable Securities Accounts Receivable Baking Supplies Merchandise Inventory Prepaid Rent Prepaid Insurance Misc. Supplies Land Building Baking Equipment 1,488.999.34 5,500,000.00 7,092,495.88 1,605,098.52 128,152.63 71,877.07 207.834.14 17.647.42 250,000.00 1,250,000.00 2,254,140.00 1,488,999.34 5,235,000.00 7,092,495.88 1,605,098.52 128,152.63 71.877.07 207,834.14 17,647.42 250,000.00 1,250,000.00 2,254,140.00 328,282,00 328,282.00 Accumulated Depreciation Patent Accounts Payable Wages Payable Interest Payable Current Portion of Bonds Payable Income Taxes Currently Payable Accrued Pension Liability Accrued Employees Health Insurance Lease Liability 1,555,212.85 250,203.31 21.888.22 1,000,000.00 1,042,118.16 1,555, 212.85 250,203.31 21,888.22 1,000,000.00 1,160,318.41 118,200.25 Instructions. Milestone Trial Balance 2017 Instructions Milestone Milestone calculations Instructions final Prel Balance Sheet 2017 Prel Income Statement 20 Type here to search Number HI 118,575.25 4,000,000.00 500,000.00 1,750,000.00 2,213,122.59 118,575.25 4,000,000.00 500,000.00 1.750,000.00 2,213,122.59 50,000.00 5,250,000.00 50,000.00 5,250,000.00 33,881,157.15 124,795.80 33,881,157.15 124,795.80 Deferred Tax Liability Bonds Payable Preferred Stock Common Stock Beginning Retained earnings Dividends - Preferred Dividends - Common Bakery Sales Merchandise Sales Cost of Goods Sold - Bakec Cost of Goods Sold - Merch Rent Expense Wages Expense Misc. Supplies Expense Repairs and Maintenance Business License Expense Misc. Expense Depreciation Expense Insurance Expense Advertising Expense Interest Expense Telephone Expense Pension Expense Retired Employees Health Ins Patent Amortization 10,954,907.36 88,994.79 1,576,731.95 2,604,526.23 263,224.56 47,353.05 211,757.65 141,171.08 634,520.00 112,937.69 160,413.49 484,703.27 50,821.34 10,954,907.36 88,994.79 1,576,731.95 2,604,526.23 263,224.56 47.353.05 211,757.65 141,171.08 634,520.00 112,937.69 160,413.49 484,703.27 50,821.34 Instructions - Milestone Trial Balance 2017 Instructions. Milestone 2 Milestone 2 calculations Instructions - Final Prel Balance Sheet 2017 Prel Income State Type here to search ACC 309 Final Project Student Workbook (1) - Excel MandyNe O A 2 Home Insert Page Layout Formulas Data Review View Help Search General Cut Arial Copy Format Painter BIU. 12 . A A = = .0.A. ESSE Wrap Text Merge & Center $ -% -48 Conditional Format as Cell Formatting Table Styles Insert Delete Format - Clear Alignment N Depreciation Expense Insurance Expense Advertising Expense Interest Expense Telephone Expense Pension Expense Retired Employees Health Ins. Patent Amortization D 634,520.00 112,937.69 160,413.49 484,703.27 50,821.34 634,520.00 112,937.69 160,413.49 484,703.27 50,821.34 Unrealized Gain/(Loss) on Marketable Securities Held for Sale 265,000.00 265,000.00 4,168,472.62 Income Taxes Deferred tax Expense 118,200.25 118,575.25 4,286,672.87 118,575.25 46,666,780.08 46,666,780.08 501,775.50 501,775,50 46,903,555.58 46,903,555.58 (1) $1,500 included in meal and entertainment expenses will not have an milestone 1 (2) MACRS Depreciation used for tax is higher by $209,301 so expenses milestone 1 milestone 1 milestone 2 milestone 2 milestone 2 ndalons. Milestone Trial Balance 2017 Instructions - Milestone 2 Milestone 2 calculations Instructions final Prel Balance Sheet 2017 Pret income
