The company spent 50000 to obtain and defend a patent for its formula for dog

The company spent 50000 to obtain and defend a patent

This preview shows page 20 - 34 out of 38 pages.

· The company spent $50,000 to obtain and defend a patent for its formula for dog treats. The 1/1/20XX and provides 20 years of protection. The $50,000 amount was incorrectly charged to M
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stone 1 or milestone 2 workbook (red tab). Use the ments that are audit ready. with applicable accounting HOME
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ches should be used. analysis. vision process. two storefront locations and months. itional $600,000 of after-tax ently outstanding) is expected that the repair will e patent took effect on Misc. Expense
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Assets Liabilities and Owners' Equity Current Assets: Current Liabilities: Cash 1,488,999.34 Accounts Payable 1,555,212.85 Marketable Securities 5,500,000.00 Wages Payable 250,203.31 Accounts Receivable 7,092,495.88 Interest Payable 21,888.22 Baking Supplies 1,605,098.52 Current Portion of Bonds Payable 1,000,000.00 Merchandise Inventory 128,152.63 Income taxes currently payable 1,042,118.16 Prepaid Rent 71,877.07 Prepaid Insurance 207,834.14 Misc. Supplies 17,647.42 Total Current Assets 16,112,105.00 Total Current Liabilities 3,869,422.54 Long Term Liabilities: Long Term/Fixed Assets: Bonds Payable 10%, 20 year 4,000,000.00 Land 250,000.00 Building 1,250,000.00 Baking Equipment 2,254,140.00 Total Long Term Liabilities: 4,000,000.00 Accumulated Depreciation -328,282.00 Net Fixed assets 3,425,858.00 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 shares 1,750,000.00 authorized, 1,750,000 issued, $1 par) Retained Earnings 9,418,540.46 Total Equity 11,668,540.46 Total Assets: 19,537,963.00 Total Liabilities & Equity 19,537,963.00
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Bakery Sales $ 33,881,157.15 Merchandise Sales 124,795.80 Total Revenues 34,005,952.95 Cost of Goods Sold - Baked 10,954,907.36 Cost of Goods Sold - Merchandise 88,994.79 Total Cost of Goods Sold 11,043,902.15 Gross Profit 22,962,050.80 Operating Expenses: 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 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 Total Operating Expenses: 6,288,160.31 Earnings before Income Tax 16,673,890.49 Income Taxes 4,168,472.62 Net Income 12,505,417.87
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Peyton Approved Statement of Retained Earnings For Year Ended 12/31/20XX Beginning Balance: $ 2,213,122.59 plus Net Income 12,505,417.87 less Dividends: Preferred 50,000.00 Common 5,250,000.00 Ending Balance $ 9,418,540.46 $ 9,418,540.46
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Peyton Approved Income Statement For Year Ended 12/31/20XX Bakery Sales Merchandise Sales Total Revenues Cost of Goods Sold - Baked Cost of Goods Sold - Merchandise Total Cost of Goods Sold Gross Profit Operating Expenses: Rent Expense 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 Total Operating Expenses: Operating Income Income Taxes Deferred tax Expense Total Tax Expense
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Net Income Unrealized Gain/(Loss) on Marketable Securities Held for Sale Comprehensive Income
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$ 33,881,157.15 124,795.80 34,005,952.95 $ 10,954,907.36 $ 88,994.79 11,043,902.15 22,962,050.80 $ 1,556,731.95 2,604,526.23 263,224.56 20,353.05 211,757.65 91,171.08 634,520.00 112,937.69 160,413.49 484,703.27 50,821.34 107,041.70 43,718.91 2,500.00 6,344,420.92 16,617,629.88 4,168,847.62 52,325.25 4,221,172.87 HOME
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12,396,457.01 265,000.00 12,131,457.01
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Peyton Approved Statement of Retained Earnin For Year Ended 12/31/20XX Beginning Balance: plus Comprehensive Income less Dividends: Preferred Common Ending Balance 0
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ngs X $ 2,213,122.59 12,131,457.01 50,000.00 5,250,000.00 $ 9,044,579.60 HOME
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Peyton Approved Balance Sheet As of December 31, 20XX Assets Current Assets: Cash 1,488,999.34 Accounts Marketable Securities 5,235,000.00 Wages P Accounts Receivable 7,092,495.88 Interest P Baking Supplies 1,605,098.52 Current P
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