I need help with the entries to the Trial Balance for below please 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 I had figured this was 118,575 25 but that is incorrect 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) 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 This appears to affect three area on the trial balance How does this affect the Patent Amortization The adjusting entries should total 674,550 87, but I am not sure where my entries are incorrect I feel all my entries are correct except the two items listed above See below Adjusting entries Dr Cr Cash Marketable Securities 265,000 00 Accounts Receivable Baking Supplies Merchandise Inventory Prepaid Rent Prepaid Insurance Misc Supplies Land Building Baking Equipment 106,590 00 27,000 00 Accumulated Depreciation Patent 50,000 00 52,325 25 Accounts Payable Wages Payable Interest Payable Current Portion of Bonds Payable Income Taxes Currently Payable 375 00 Accrued Pension Liability 107,041 70 Accrued Employees Health Insurance 43,718 91 Lease Liability 86,590 00 Deferred Tax Liability 13,924 75 Bonds Payable Preferred Stock Common Stock Beginning Retained earnings Dividends Preferred Dividends Common Bakery Sales Merchandise Sales Cost of Goods Sold Baked Cost of Goods Sold Merchandise Rent Expense 20,000 00 Wages Expense Misc Supplies Expense Repairs and Maintenance 27,000 00 Business License Expense Misc Expense 50,000 00 Depreciation Expense 52,325 25 Insurance Expense Advertising Expense Interest Expense Telephone Expense Pension Expense 107,041 70 Retired Employees Health Ins 43,718 91 Patent Amortization Unrealized Gain (Loss) on Marketable Securities Held for Sale 265,000 00 Income Taxes 375 00 Deferred tax Expense 13,924 75 665,975 61 665,975 61

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I need help with the entries to the Trial Balance for below please: The company uses straight line depreciation for book and MACRS depreciation for

I need help with the entries to the Trial Balance for below please:

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. I had figured this was 118,575.25 but that is incorrect. 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).

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 This appears to affect three area on the trial balance. How does this affect the Patent Amortization?

The adjusting entries should total 674,550.87, but I am not sure where my entries are incorrect. I feel all my entries are correct except the two items listed above.

See below:

	Adjusting entries
	Dr	Cr
Cash
Marketable Securities		265,000.00
Accounts Receivable
Baking Supplies
Merchandise Inventory
Prepaid Rent
Prepaid Insurance
Misc. Supplies
Land
Building
Baking Equipment	106,590.00
	27,000.00
Accumulated Depreciation
Patent	50,000.00	52,325.25
Accounts Payable
Wages Payable
Interest Payable
Current Portion of Bonds Payable
Income Taxes Currently Payable				375.00
Accrued Pension Liability					107,041.70
Accrued Employees Health Insurance					43,718.91
Lease Liability		86,590.00

Deferred Tax Liability		13,924.75
Bonds Payable
Preferred Stock
Common Stock
Beginning Retained earnings
Dividends - Preferred
Dividends - Common
Bakery Sales
Merchandise Sales
Cost of Goods Sold - Baked
Cost of Goods Sold - Merchandise
Rent Expense		20,000.00
Wages Expense
Misc. Supplies Expense
Repairs and Maintenance			27,000.00
Business License Expense
Misc. Expense		50,000.00
Depreciation Expense	52,325.25
Insurance Expense
Advertising Expense
Interest Expense
Telephone Expense
Pension Expense	107,041.70
Retired Employees Health Ins.				43,718.91
Patent Amortization

Unrealized Gain/(Loss) on Marketable Securities Held for Sale				265,000.00

Income Taxes	375.00
Deferred tax Expense	13,924.75

	665,975.61	665,975.61