Question
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
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.
| 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 | ||||||||||||
| CAPITAL LEASES | ||||
| Calculate capital lease obligations | ||||
| Prepare appropriate adjusting entries | ||||
| PENSION PAYOUTS | ||||
| Calculate pension liability | ||||
| Calculate health insurance liability | ||||
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Fundamental Accounting Principles
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
20th Edition
1259157148, 78110874, 9780077616212, 978-1259157141, 77616219, 978-0078110870
