ACC 309 Notes to Financials & Executive Summary Katelyn Brunelle Southern New Hampshire University
Notes to the Financial Statements The International Financial Reporting Standards (IFRS) states that since Peyton Approved has Marketable Securities on the Balance Sheet at a cost of $5,500,000 are available for sale and the market value on the Balance Sheet is $5,235,000 by calculating the Unrealized Loss on Marketable Securities- Available for sale is $265,000 which is recorded on the Balance Sheet. The Income Taxes Currently Payable is increased $375 on the Balance Sheet which is deducted from the meal and entertainment expense $1,500. Income tax expense is increased by $375 ($1,500* 25%= $375 20% Federal, 5% State) Net income is decreased by $375. The Deferred Tax Liability is increased by $52,325.25 ($209,301* 25%). The extra tax deduction of $209,301 under MACRS should be adjusted to increase tax expense and liability. The Annuity due fsctor for this lease present value is $106,590 based on 6 years, 5%, annuity due calculation. On the Balance Sheet the lease liability is increased by $86,590 ($106,590-$20,000). The Interest Expense on Capital Lease obligation is increased based on the rate at the deduction principle. The interest expense is $4,329.48 in the next years payment. The estimated accrued pension liability is $107,041.70 and accrued health insurance liability is $43,718.91. On the Balance Sheet the current liabilites are increased by the accrued pension liability and health insurance liability. The $2,500 annual patent ammortization expense is recorded on the Balance Sheet as a long term asset and it decreases after ammortization. Peyton Approved repaired the packaging machine $27,000 in the future four years so the depreciation expense and accumulated depreciation expense will increase the next four years usinf the straight line depreciation method.
Executive Summary Peyton Approved has experienced tremendous growth in the last 3 years and is a well known bakery chain for pet products. As the financial accountant for this company this management brief is the discuss the comprehensive income that is not included in their net income and why it should be included in nondisclosure notes instead of net income. I will explain the impacts it can have on Peyton Approved’s finances as well as stockholder equity, retained earnings per share, preferred stock or debt for determining changes to equity structures and impact of changes to current tax structure for articulating changes relevant to the company. “Comprehensive income also known as accumulated other comprehensive income is calculated by adding net income to other comprehensive income. This is a catch all classification for items that can’t be included in typical profit and loss classifications because they do not stem from the company’s regular business activites and operations. They have to by pass the