PEYTON APPROVED
			TRIAL BALANCE
			As of December 31, 2017			Adjusting entries
		Dr		Cr		Dr		Cr		Dr		Cr
Cash		1,488,999.34								1,488,999.34
Marketable Securities		5,500,000.00								5,500,000.00
Accounts Receivable		7,092,495.88								7,092,495.88
Baking Supplies		1,605,098.52								1,605,098.52
Merchandise Inventory		128,152.63								128,152.63
Prepaid Rent		71,877.07								71,877.07
Prepaid Insurance		207,834.14								207,834.14
Misc. Supplies		17,647.42								17,647.42
Land		250,000.00								250,000.00
Building		1,250,000.00								1,250,000.00
Baking Equipment		2,254,140.00								2,254,140.00
Accumulated Depreciation				328,282.00								328,282.00
Patent										-
Accounts Payable				1,555,212.85								1,555,212.85
Wages Payable				250,203.31								250,203.31
Interest Payable				21,888.22								21,888.22
Current Portion of Bonds Payable				1,000,000.00								1,000,000.00
Income Taxes Currently Payable				1,042,118.16								1,042,118.16
Accrued Pension Liability												-
Accrued Employees Health Insurance												-
Lease Liability												-
												-
Deferred Tax Liability												-
Bonds Payable				4,000,000.00								4,000,000.00
Preferred Stock				500,000.00								500,000.00
Common Stock				1,750,000.00								1,750,000.00
Beginning Retained earnings				2,213,122.59								2,213,122.59
Dividends - Preferred		50,000.00								50,000.00
Dividends - Common		5,250,000.00								5,250,000.00
Bakery Sales				33,881,157.15								33,881,157.15
Merchandise Sales				124,795.80								124,795.80
Cost of Goods Sold - Baked		10,954,907.36								10,954,907.36
Cost of Goods Sold - Merchandise		88,994.79								88,994.79
Rent Expense		1,576,731.95								1,576,731.95
Wages Expense		2,604,526.23								2,604,526.23
Misc. Supplies Expense		263,224.56								263,224.56
Repairs and Maintenance		47,353.05								47,353.05
Business License Expense		211,757.65								211,757.65
Misc. Expense		141,171.08								141,171.08
Depreciation Expense		634,520.00								634,520.00
Insurance Expense		112,937.69								112,937.69
Advertising Expense		160,413.49								160,413.49
Interest Expense		484,703.27								484,703.27
Telephone Expense		50,821.34								50,821.34
Pension Expense										-
Retired Employees Health Ins.										-
Patent Amortization										-
										-
Unrealized Gain/(Loss) on Marketable Securities Held for Sale										-
										-
Income Taxes		4,168,472.62								4,168,472.62
Deferred tax Expense										-
		46,666,780.08		46,666,780.08		-		-		46,666,780.08		46,666,780.08

ITEMS TO COMPLETE FOR THIS MILESTONE:

GENERAL

In preparation of the annual audit, make calculations (green tab) and prepare appropriate adjusting entries and post to the trial balance workbook (red tab)

CAPITAL LEASES

Calculate capital lease obligations

Prepare appropriate adjusting entries

PENSION PAYOUTS

Calculate pension liability

Calculate health insurance liability

ADJUSTING ENTRIES

Prepare adjusting entries for capital lease obligations

Prepare adjusting entries for pension payouts

MANAGEMENT BRIEF - Prepare in a Word document - see the rubric for milestone 2

A. Explain the implications of capital lease based on how it relates to the companys equipment usage.

B. Explain how postretirement plans will impact the company financially in the short and long term, using examples from the accounting workbook to support claims.

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.

	Capital Leases
	Pension payouts