Prepare appropriate adjusting entries PENSION PAYOUTS Calculate pension

Prepare appropriate adjusting entries pension payouts

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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 FINANCIAL INFORMATION FOR THIS MILESTONE Postretirement Benefits INSTRUCTIONS FOR MILESTONE 2 (Due Week 5) Make sure to completely review the Rubric for Milestone 2 workbook (red tab) MANAGEMENT BRIEF - Prepare i n 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, us accounting workbook to support claims.
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Leases Peyton Approved has revised its postretirement plan. It will now provide health insurance to retired emplo 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 pensi · The estimated cost of retired employees’ health insurance is $43,718.91. · Prepare adjusting entries for the pension liability and the health insurance liability · Six ovens were rented on December 31, with $20,000 charged to rent expense. The lease runs interest rate of 5%. At the end of the 6 years, Peyton will own them. Make any necessary adjustin
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. sing examples from the HOME
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oyees. Management has ion liability of $107,041.70. s for 6 years with an implicit ng entries.
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Capital Leases Payment # PVF @ 5% Present Value 0 1 $ 20,000.00 1 $ 20,000.00 1 2 $ 20,000.00 0.9523809524 $ 19,047.62 2 3 $ 20,000.00 0.9070294785 $ 18,140.59 3 4 $ 20,000.00 0.8638375985 $ 17,276.75 4 5 $ 20,000.00 0.8227024748 $ 16,454.05 5 6 $ 20,000.00 0.7835261665 $ 15,670.52 Fair Value of Lease Obligation $ 106,589.53 Payment reduced by: 1 $ 20,000.00 $ 20,000.00 $ 86,589.53 2 $ 20,000.00 $ 4,329.50 $ 19,047.62 $ 67,541.91 1 3 $ 20,000.00 $ 3,545.98 $ 18,140.59 $ 49,401.32 2 4 $ 20,000.00 $ 2,723.27 $ 17,276.75 $ 32,124.57 3 5 $ 20,000.00 $ 1,859.44 $ 16,454.05 $ 15,670.52 4 6 $ 20,000.00 $ 952.41 $ 15,670.52 $ - 5 $ 120,000.00 $ 13,410.60 $ (106,589.40) They lease the ovens on 12/31/17 an immediately make a $20,000 payment. Because the They make a payment of $20,000 the same day. There is neither interest nor deprciation o So the adjustments are: 31-Dec 106,589.40 Lease Equipment 106,589.40 To record the aquistion of the lease obligation asset and liability 31-Dec Lease Equipment 20,000.00 20,000.00 Pension Lease Payment Interest Expense Lease Obligation Reduced by Lease Obligation ( Balance After payment ): Equipment Rent Expense To correct intial recording of equipment lease aquistion under rent expenes account. Lease obligation would have been correct account · The company is currently employing 60, and actuaries estimate that the company h · The estimated cost of retired employees’ health insurance is $43,718.91.
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31-Dec Pension Expense 107,041.70 Accrued Pension Expense 107,041.70 31-Dec Retired Employees Health Ins. 43718.91 Accrued Employees Health Insurance 43718.91 106,589.40 6 17,764.90
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ey make a payment at the start, it's a 6 year 5% annuity due. The correct PV factor is 5.3295. They should capita on the day they sign the lease. The payment just reduces the lease obligation by $20,000.
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