launched a new marketing campaign which is estimated to bring in 20000 new

Launched a new marketing campaign which is estimated

This preview shows page 4 - 14 out of 39 pages.

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 addi profit. The options are: 1) Issuing an additional $1,000,000 of 10%, 100-par convertible preferred stock (same class as is current 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
Image of page 4
ance workbook (red tab) losure within notes. financial information to support claims. re , using financial information to support claims. ny. ome e the necessary adjusting entry. HOME
Image of page 5
urn ferred tax. ved has been a C Corp since the % state). two storefront locations and months. itional $600,000 of after-tax tly outstanding)
Image of page 6
PEYTON APPROVED TRIAL BALANCE As of December 31, 2017 Adjusting entries Dr Cr Dr Cr Cash 1,488,999.34 5,500,000.00 265,000.00 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 2,254,140.00 101,513.82 328,282.00 16,918.97 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 1,042,118.16 107,041.70 43,718.91 81,513.82 52,325.25 Bonds Payable 4,000,000.00 Preferred Stock 500,000.00 Common Stock 1,750,000.00 Marketable Securities 1 Baking Equipment 6 Accumulated Depreciation 6 Accrued Pension Liability 4 Accrued Employees Health Insurance 5 Lease Liability 6 Deferred Tax Liability 3
Image of page 7
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 - Merchandise 88,994.79 1,576,731.95 14,924.31 Wages Expense 2,604,526.23 Misc. Supplies Expense 263,224.56 Repairs and Maintenance 47,353.05 Business License Expense 211,757.65 141,171.08 375.00 634,520.00 16,918.97 Insurance Expense 112,937.69 Advertising Expense 160,413.49 484,703.27 5,075.69 Telephone Expense 50,821.34 107,041.70 43,718.91 Patent Amortization 265,000.00 Income Taxes 4,168,472.62 52,700.25 46,666,780.08 46,666,780.08 586,893.65 586,893.65 (1) Rent Expense 6 Misc. Expense 2 Depreciation Expense 6 Interest Expense 6 Pension Expense 4 Retired Employees Health Ins. 5 Unrealized Gain/(Loss) on Marketable Securities Held for Sale 1 Deferred tax Expense 2,3 adjusting entry to record the unr in comprehensive income ($5,50
Image of page 8
(2) (3) (4) (5) (6) (7) (8) adjusting entry to record deferre ($1,500 x .25) adjusting entry to recod deferred book and income tax value of MA ($209,301 x .25) adjusting entry to record actuarie liability. adjusting entry to record estimat employees health insurance adjusting entry to record present for six ovens, payment, interest e
Image of page 9
Dr Cr 1,488,999.34 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 2,355,653.82 345,200.97 - 1,555,212.85 250,203.31 21,888.22 1,000,000.00 1,042,118.16 107,041.70 43,718.91 81,513.82 - 52,325.25 4,000,000.00 500,000.00 1,750,000.00 HOME
Image of page 10
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 1,561,807.64 2,604,526.23 263,224.56 47,353.05 211,757.65 140,796.08 651,438.97 112,937.69 160,413.49 479,627.58 50,821.34 107,041.70 43,718.91 - - 265,000.00 - 4,168,472.62 52,700.25 46,968,298.73 46,968,298.73 milestone 1 realized loss and include 00,000-$5,235,000)
Image of page 11
milestone 1 milestone 1 milestone 2 milestone 2 milestone 2 final final ed tax on meals tax d tax due to difference in ACRS depreciation es estimate for pension ted cost of retired t value of lease payments expense and depreciation
Image of page 12
Southern New Hampshire University ACC309 - Intermediate Accounting III IMPORTANT NOTE: Use the data from this Milestone and begin working on your final presentation due in Week 7 ITEMS TO COMPLETE FOR THIS MILESTONE: GENERAL CAPITAL LEASES Calculate capital lease obligations Prepare appropriate adjusting entries PENSION PAYOUTS
Image of page 13
Image of page 14

You've reached the end of your free preview.

Want to read all 39 pages?

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes