launched a new marketing campaign which is estimated to bring in 20000 new

Launched a new marketing campaign which is estimated

This preview shows page 4 - 11 out of 141 pages.

launched a new marketing campaign, which is estimated to bring in 20,000 new customers over the next 6 m The company expects this expansion will require an additional $1,000,000 of capital and generate an add profit. The options are: 1) Issuing an additional $1,000,000 of 10%, 100-par convertible preferred stock (same class as is curren 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
Image of page 4
lance workbook (red tab) closure within notes. financial information to support claims. are , using financial information to support claims. any. ome re the necessary adjusting entry. HOME
Image of page 5
turn eferred tax. oved has been a C Corp since the % state). two storefront locations and months. ditional $600,000 of after-tax ntly outstanding)
Image of page 6
PEYTON APPROVED TRIAL BALANCE As of December 31, 2017 Dr Cr Cash 1,488,999.34 Marketable Securities 5,500,000.00 Accounts Receivable 7,092,495.88 Baking Supplies 1,605,098.52 Merchandise Inventory 128,152.63 Prepaid Rent 71,877.07 Prepaid Insurance 207,834.14 Misc. Supplies 17,647.42 Land 250,000.00 Building 1,250,000.00 Baking Equipment 2,254,140.00 6 Accumulated Depreciation 328,282.00 Patent Accounts Payable 1,555,212.85 Wages Payable 250,203.31 Interest Payable 21,888.22 Current Portion of Bonds Payable 1,000,000.00 Income Taxes Currently Payable 1,042,118.16 Accrued Pension Liability Accrued Employees Health Insurance Lease Liability Deferred Tax Liability Bonds Payable 4,000,000.00 Preferred Stock 500,000.00 Common Stock 1,750,000.00 Beginning Retained earnings 2,213,122.59 Dividends - Preferred 50,000.00 Dividends - Common 5,250,000.00 Bakery Sales 33,881,157.15 Merchandise Sales 124,795.80 Cost of Goods Sold - Baked 10,954,907.36 Cost of Goods Sold - Mercha 88,994.79 Rent Expense 1,576,731.95 Wages Expense 2,604,526.23 Misc. Supplies Expense 263,224.56 Repairs and Maintenance 47,353.05 Business License Expense 211,757.65
Image of page 7
Misc. Expense 141,171.08 Depreciation Expense 634,520.00 Insurance Expense 112,937.69 Advertising Expense 160,413.49 Interest Expense 484,703.27 Telephone Expense 50,821.34 Pension Expense 4 Retired Employees Health Ins. 5 Patent Amortization Unrealized Gain/(Loss) on Marketable Securities Held for Sale 1 Income Taxes 4,168,472.62 2 Deferred tax Expense 3 46,666,780.08 46,666,780.08 (1)Adj (2) Ad (3) Ad (4) Ad (5) Ad (6 ) Ad 7 (8)
Image of page 8
Adjusting entries Dr Cr Dr Cr 1,488,999.34 1 265,000.00 5,235,000.00 7,092,495.88 1,605,098.52 128,152.63 71,877.07 207,834.14 17,647.42 250,000.00 1,250,000.00 106,589.53 2,360,729.53 - 328,282.00 50,000.00 50,000.00 - 1,555,212.85 250,203.31 21,888.22 1,000,000.00 2 375.00 1,042,493.16 4 107,041.70 107,041.70 5 43,718.91 43,718.91 6 86,589.53 86,589.53 - 3 52,325.25 52,325.25 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 6 20,000.00 1,556,731.95 2,604,526.23 263,224.56 - 47,353.05 211,757.65 HOME
Image of page 9
50,000.00 91,171.08 - 634,520.00 112,937.69 160,413.49 484,703.27 50,821.34 107,041.70 107,041.70 43,718.91 43,718.91 2,500.00 2,500.00 - 265,000.00 265,000.00 - 375.00 4,168,847.62 52,325.25 52,325.25 627,550.39 675,050.39 46,909,330.47 46,956,830.47 jusment entry to record the unrealized loss and included comprehensi milestone 1 djusting entry to record deferred tax on meals tax (1,500 X .25) milestone 1 djusting entryTo record deferred tax due to difference in book and inco milestone 1 djusment entry to record actuaries for pension liability. milestone 2 djusting entry to record estimated cost of retired employees health insu milestone 2 djusting entry to record present values of lease payments for six ovens, payment, interest expense and de milestone 2 in order to attain and defend a patent for a formula for dog treats, the company had to spend $50,000.00 . The paten and it provides protection for 20 years. The amortized patent is at 2500 for the c No depreciation is necessary this year.
Image of page 10
Image of page 11

You've reached the end of your free preview.

Want to read all 141 pages?

  • Fall '15
  • Balance Sheet, Generally Accepted Accounting Principles, Peyton

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes