M Explain how the four step process was used for effectively correcting and

M explain how the four step process was used for

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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 tlaunched 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 addiprofit. The options are: 1)Issuing an additional $1,000,000 of 10%, 100-par convertible preferred stock (same class as is curre2)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. Itextend 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. The1/1/20XX and provides 20 years of protection. The $50,000 amount was incorrectly charged to M
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stone 1 or milestone 2workbook (red tab). Use the ments that are audit ready. with applicable accounting chesshould be used. HOME
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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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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, $1 par)Retained Earnings9,418,540.46 Total Equity11,668,540.46 Total Assets:19,537,963.00 Total Liabilities & Equity19,537,963.00
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Bakery Sales$ 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
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Peyton ApprovedStatement of Retained EarningsFor Year Ended 12/31/20XXBeginning Balance:$ 2,213,122.59 plus Net Income 12,505,417.87 less Dividends: Preferred 50,000.00 Common5,250,000.00 Ending Balance$ 9,418,540.46 $ 9,418,540.46
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Peyton ApprovedIncome StatementFor Year Ended 12/31/20XXBakery SalesMerchandise SalesTotal RevenuesCost of Goods Sold - BakedCost of Goods Sold - MerchandiseTotal Cost of Goods SoldGross ProfitOperating Expenses:Rent ExpenseWages ExpenseMisc. Supplies ExpenseRepairs and Maintenance
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