please need help
N BCDEFGHIJK In preparation of the annual audit, make calculations (green tab) and prepare appropriate adjusting entries and post to the trial 22 balance workbook (red tab) 24 CAPITAL LEASES Calculate capital lease obligations Prepare appropriate adjusting entries 29 PENSION PAYOUTS Calculate pension liability Calculate health insurance liability 32 33 ADJUSTING ENTRIES Prepare adjusting entries for capital lease obligations Prepare adjusting entries for pension payouts 36 39 38 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 company's equipment usage. B. Explain how postretirement plans will impact the company financially in the short and long term, using examples from the 40 accounting workbook to support claims. ADJUSTING ENTRIES 35 Prepare adjusting entries for capital lease obligations Prepare adjusting entries for pension payouts 37 38 MANAGEMENT BRIEF - Prepare in a Word document - see the rubric for milestone 2 39 A. Explain the implications of capital lease based on how it relates to the company's equipment usage. B. Explain how postretirement plans will impact the company financially in the short and long term, using examples from the 40 accounting workbook to support claims. 41 43 FINANCIAL INFORMATION FOR THIS MILESTONE 44 45 Postretirement Benefits Peyton Approved has revised its postretirement plan. It will now provide health insurance to retired employees. Management has 46 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. 48 The estimated cost of retired employees' health insurance is $43.718.91. Prepare adjusting entries for the pension liability and the health Insurance liability 49 50 51 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 596. At the end of the 6 years, Peyton will own them. Make any necessary adjusting entries. BIU.L. S.A. Merge & Center - Format Painter Clipboard Conditional Format as Formatting Table Styles Styles insert Delete Format - - z Adjusting entries 5 Cash Marketable Securities Accounts Receivable Baking Supplies Merchandise Inventory Prepaid Rent Prepaid Insurance Misc. Supplies Land Building Baking Equipment PEYTON APPROVED TRIAL BALANCE As of December 31, 2017 Dr 1.488,999.34 5,500,000.00 7,092,49588 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 Dr 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 2,254,140.00 328,282.00 328,28200 Accumulated Depreciation Patent Accounts Payable Wages Payable Interest Payable Current Portion of Ronds Pavabla 1,555,212 85 250,203.31 21,888 22 1 000 000 00 1,555,212.85 250,203.31 21 888 22 1 000 000.00 - Xf E 21,888.22 1,000,000.00 1,042,118,16 21,888 22 1,000,000.00 1,042,118.16 Interest Payable Current Portion of Bonds Payable Income Taxes Currently Payable Accrued Pension Liability Accrued Employees Health Insurance Lease Liability 4,000,000.00 500,000.00 1,750,000.00 2,213,12259 50,000.00 5,250,000.00 Deferred Tax Liability Bonds Payable Preferred Stock Common Stock Beginning Retained earnings Dividends - Preferred Dividends - Common Bakery Sales Merchandise Sales Cost of Goods Sold-Bake Cost of Goods Sold - Merch Rent Expense Wages Expense Misc. Supplies Expense Renairs and Maintenance 33,881,157.15 124.795.80 4,000,000.00 500,000.00 1,750,000.00 2,213,122.59 50,000.00 5,250,000.00 33,881,157.15 124,795.80 10,954.907.36 88,994.79 1,576,73195 2,604,526 23 263 224.56 47 35305 Prel Balance Sheet 2017 Prel Income 10,954,90736 88,994.79 1,576,731.95 2,604,526.23 263.224.56 4725305 Calibri A 2. Wrap Text General Copy IU. Merge & Center. $ % 89 Format Painter B board Conditional Format as Cell Formatting Table Styles Styles Insert Delete . . Alignment Number - for 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 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 L 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 Home Insert Page Layout Formulas Data Review View QuickBooks Tell me what you want to do X Cut Copy -11-AA == - A PWrap Tent Merge & Center - Paste BIU- Format Painter . S - % m Conditional Formatas Co Formatting Table Styles ert Delete Format - - Unrealized Gain (Loss) on Marketable Securities Held for Sale 4,168,472 62 4.168.47262 Income Taxes Deferred tax Expense 46,666,780.08 46,666,780.08 46,666,780.08 46,666,780.08 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 $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. 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 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 $20,000 charged to rent expense. The lease runs 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 $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 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. N BCDEFGHIJK In preparation of the annual audit, make calculations (green tab) and prepare appropriate adjusting entries and post to the trial 22 balance workbook (red tab) 24 CAPITAL LEASES Calculate capital lease obligations Prepare appropriate adjusting entries 29 PENSION PAYOUTS Calculate pension liability Calculate health insurance liability 32 33 ADJUSTING ENTRIES Prepare adjusting entries for capital lease obligations Prepare adjusting entries for pension payouts 36 39 38 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 company's equipment usage. B. Explain how postretirement plans will impact the company financially in the short and long term, using examples from the 40 accounting workbook to support claims. ADJUSTING ENTRIES 35 Prepare adjusting entries for capital lease obligations Prepare adjusting entries for pension payouts 37 38 MANAGEMENT BRIEF - Prepare in a Word document - see the rubric for milestone 2 39 A. Explain the implications of capital lease based on how it relates to the company's equipment usage. B. Explain how postretirement plans will impact the company financially in the short and long term, using examples from the 40 accounting workbook to support claims. 41 43 FINANCIAL INFORMATION FOR THIS MILESTONE 44 45 Postretirement Benefits Peyton Approved has revised its postretirement plan. It will now provide health insurance to retired employees. Management has 46 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. 48 The estimated cost of retired employees' health insurance is $43.718.91. Prepare adjusting entries for the pension liability and the health Insurance liability 49 50 51 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 596. At the end of the 6 years, Peyton will own them. Make any necessary adjusting entries. BIU.L. S.A. Merge & Center - Format Painter Clipboard Conditional Format as Formatting Table Styles Styles insert Delete Format - - z Adjusting entries 5 Cash Marketable Securities Accounts Receivable Baking Supplies Merchandise Inventory Prepaid Rent Prepaid Insurance Misc. Supplies Land Building Baking Equipment PEYTON APPROVED TRIAL BALANCE As of December 31, 2017 Dr 1.488,999.34 5,500,000.00 7,092,49588 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 Dr 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 2,254,140.00 328,282.00 328,28200 Accumulated Depreciation Patent Accounts Payable Wages Payable Interest Payable Current Portion of Ronds Pavabla 1,555,212 85 250,203.31 21,888 22 1 000 000 00 1,555,212.85 250,203.31 21 888 22 1 000 000.00 - Xf E 21,888.22 1,000,000.00 1,042,118,16 21,888 22 1,000,000.00 1,042,118.16 Interest Payable Current Portion of Bonds Payable Income Taxes Currently Payable Accrued Pension Liability Accrued Employees Health Insurance Lease Liability 4,000,000.00 500,000.00 1,750,000.00 2,213,12259 50,000.00 5,250,000.00 Deferred Tax Liability Bonds Payable Preferred Stock Common Stock Beginning Retained earnings Dividends - Preferred Dividends - Common Bakery Sales Merchandise Sales Cost of Goods Sold-Bake Cost of Goods Sold - Merch Rent Expense Wages Expense Misc. Supplies Expense Renairs and Maintenance 33,881,157.15 124.795.80 4,000,000.00 500,000.00 1,750,000.00 2,213,122.59 50,000.00 5,250,000.00 33,881,157.15 124,795.80 10,954.907.36 88,994.79 1,576,73195 2,604,526 23 263 224.56 47 35305 Prel Balance Sheet 2017 Prel Income 10,954,90736 88,994.79 1,576,731.95 2,604,526.23 263.224.56 4725305 Calibri A 2. Wrap Text General Copy IU. Merge & Center. $ % 89 Format Painter B board Conditional Format as Cell Formatting Table Styles Styles Insert Delete . . Alignment Number - for 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 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 L 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 Home Insert Page Layout Formulas Data Review View QuickBooks Tell me what you want to do X Cut Copy -11-AA == - A PWrap Tent Merge & Center - Paste BIU- Format Painter . S - % m Conditional Formatas Co Formatting Table Styles ert Delete Format - - Unrealized Gain (Loss) on Marketable Securities Held for Sale 4,168,472 62 4.168.47262 Income Taxes Deferred tax Expense 46,666,780.08 46,666,780.08 46,666,780.08 46,666,780.08 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 $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. 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 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 $20,000 charged to rent expense. The lease runs 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 $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 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
