In preparation of the annual audit make calculations green tab and prepare

In preparation of the annual audit make calculations

This preview shows page 13 - 21 out of 37 pages.

In preparation of the annual audit, make calculations (green tab) and prepare appropriate adjusting entrie 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, usin accounting workbook to support claims. Peyton Approved has revised its postretirement plan. It will now provide health insurance to retired employ 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 pensio
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Leases · 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 adjusting
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es and post to the trial balance ng examples from the yees. Management has on liability of $107,041.70. HOME
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for 6 years with an implicit g entries.
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Capital Leases Payment # PVF @ 5% 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 $ (0.00) 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 they make They make a payment of $20,000 the same day. There is neither interest nor depriciation on the d Lease Payment Present Value Interest Expense Lease Obligation Reduced by Lease Obligation ( Balance After payment ):
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a payment at the start, it's a 6 year 5% annuity due. The correct PV factor is 5.3295. They should capitalize the day they sign the lease. The payment just reduces the lease obligation by $20,000. HOME
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asset at $106,590 (20,000 X 5.3295) with a credit to lease obligation.
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Southern New Hampshire University ACC309 - Intermediate Accounting III IMPORTANT NOTE: This page contains new information the must be included in the final project but has not been in milesto ITEMS TO COMPLETE FOR THIS MILESTONE: GENERAL ADJUSTING ENTRIES Prepare appropriate adjusting entries for patent Prepare appropriate adjusting entries for capitalization of machine repair ADJUSTED TRIAL BALANCE Prepare the adjusted trial balance REVISED FINANCIAL STATEMENTS Prepare a revised income statement - include comprehensive income Prepare a revised retained earnings statement Prepare a revised balance sheet EARNINGS PER SHARE Determine the impact on earnings per share caused by each expansion plan option INSTRUCTIONS FOR FINAL (Due Week 7) Make sure to completely review the Rubric for Final Project In preparation of the annual audit, prepare appropriate adjusting entries and post to the trial balance wor adjusted trial balance and the preliminary 2017 statements (yellow tabs) to prepare revised financial statemen Calculate the impact on earnings per share that the expansion options will cause. (Orange tabs)
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