J.Discuss types of accounting changes encountered and when retrospective and prospective approach
FINANCIAL INFORMATION FOR THIS MILESTONEStockholder Equity / Earnings per shareOther ItemsK.Predict theimpact of new credit policiesor a change in product or markets based on relevant ratio aL.Discuss relevant accounting standardsfor informing the company’s financial reporting strategies. M.Explain how thefour-step processwas used for effectively correcting and reporting errors in the revPeyton Approved prides itself on transparency with shareholders and investors. The company has added twlaunched a new marketing campaign, which is estimated to bring in 20,000 new customers over the next 6 mThe company expects this expansion will require an additional $1,000,000 of capital and generate an additiprofit. The options are: 1)Issuing an additional $1,000,000 of 10%, 100-par convertible preferred stock (same class as is curren2)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 ·On December 31, 20XX, the company repaired a packaging machine at cost of $27,000.00. It iextend 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 and provides 20 years of protection. The $50,000 amount was incorrectly charged to Misc. Expen
tone 1 or milestone 2orkbook (red tab). Use the ents that are audit ready. with applicable accounting hesshould be used. HOME
analysis. vision process. wo storefront locations and months. tional $600,000 of after-tax ntly outstanding) is expected that the repair will patent took effect on 1/1/20XX nse
AssetsLiabilities and Owners' EquityCurrent Assets:Current Liabilities:Cash1,488,999.34Accounts Payable1,555,212.85Marketable Securities5,500,000.00Wages Payable250,203.31Accounts Receivable7,092,495.88Interest Payable21,888.22Baking Supplies1,605,098.52Current Portion of Bonds Payable1,000,000.00 Merchandise Inventory128,152.63Income taxes currently payable1,042,118.16 Prepaid Rent71,877.07Prepaid Insurance207,834.14Misc. Supplies17,647.42Total Current Assets16,112,105.00Total Current Liabilities3,869,422.54 Long Term Liabilities:Long Term/Fixed Assets:Bonds Payable 10%, 20 year4,000,000.00 Land250,000.00 Building1,250,000.00 Baking Equipment2,254,140.00Total Long Term Liabilities:4,000,000.00 Accumulated Depreciation-328,282.00Net Fixed assets3,425,858.00 Total Liabilities:7,869,422.54 Preferred Stock - (10,000 authorized,500,000.00 5,000 issued, 10%, $100 par value)Common Stock - (2,000,000 shares1,750,000.00 authorized, 1,750,000 issued, $1 par)Retained Earnings9,418,540.46 Total Equity11,668,540.46 Total Assets:19,537,963.00 Total Liabilities & Equity19,537,963.00
Bakery Sales$ 33,881,157.15 Merchandise Sales124,795.80 Total Revenues34,005,952.95 Cost of Goods Sold - Baked10,954,907.36 Cost of Goods Sold - Merchandise88,994.79 Total Cost of Goods Sold11,043,902.15 Gross Profit22,962,050.80 Operating Expenses:Rent Expense1,576,731.95 Wages Expense2,604,526.23 Misc. Supplies Expense263,224.56 Repairs and Maintenance47,353.05 Business License Expense211,757.65 Misc. Expense141,171.08 Depreciation Expense634,520.00 Insurance Expense112,937.69 Advertising Expense160,413.49 Interest Expense484,703.27 Telephone Expense50,821.34 Total Operating Expenses:6,288,160.31 Earnings before Income Tax16,673,890.49 Income Taxes 4,168,472.62 Net Income 12,505,417.87
Peyton ApprovedStatement of Retained EarningsFor Year Ended 12/31/20XX
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