The company has added launched a new marketing campaign which is estimated to

The company has added launched a new marketing

This preview shows page 4 - 13 out of 38 pages.

Peyton Approved prides itself on transparency with shareholders and investors. The company has added 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
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lance workbook (red tab) closure within notes. financial information to support claims. are , using financial information to support claims. any. ome HOME
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re the necessary adjusting entry. 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)
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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 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
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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 Retired Employees Health Ins. Patent Amortization Unrealized Gain/(Loss) on Marketable Securities Held for Sale Income Taxes 4,168,472.62 Deferred tax Expense 46,666,780.08 46,666,780.08 (1) (2) (3) (4) (5) (6) (7) (8)
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Adjusting entries Dr Cr Dr Cr 1,488,999.34 265,000.00 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 1,250,000.00 106,589.54 2,387,729.54 27,000.00 328,282.00 50,000.00 2,500.00 47,500.00 1,555,212.85 250,203.31 21,888.22 1,000,000.00 375.00 1,042,493.16 107,041.70 107,041.70 43,718.91 43,718.91 86,589.54 86,589.54 - 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 20,000.00 1,556,731.95 2,604,526.23 263,224.56 27,000.00 20,353.05 211,757.65 HOME
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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 52,325.25 654,550.40 654,550.40 46,956,830.48 46,956,830.48 milestone 1 milestone 1 milestone 1 milestone 2 milestone 2 milestone 2 final final To record difference in market value $5,500,000 - $5,235,000 To record defered taxes on meal and entertainment expenses of $1500 To record deferred tax due to difference in book and tax value of depreciation, straight line vs MACRS. Debit equipment for the (6) ovens that are a lease to own = $106,589.54 Credit rent expense for $20,000 for the first payment made immediately upon signing the lease Credit lease liability for $86,589.54 for the remaining balance due on the ovens Pension expense was debited and pension liability was credited for $107,041.70 for the 60 employees that the company owes pension expenses to Retired employees health insurance was debited and accrued employees health expense was credited for $43,718.91 for the amount outstanding in health insurance
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Southern New Hampshire University ACC309 - Intermediate Accounting III IMPORTANT NOTE:
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