Question

Trial Balance Check Figure Please!!!! Pretty Please!!! :)

Marketable securities on the balance sheet at a cost of $5,500,000 are available-for-sale  Market value at the balance sheet date is $5,235,00  Prepare the adjusting entry to record the unrealized loss and include in comprehensive income Tax information and implications  $1,500 in meal and entertainment expenses show as a permanent difference for tax. Prepare the necessary adjusting entry.  The company uses straight line depreciation for book and MACRS depreciation for the tax return  MACRS depreciation was $209,301 higher than book. Prepare the adjusting entry for the deferred tax.  There have been recent tax structure changes the could impact the company. Peyton Approved has been a C Corp since the beginning of these changes. Peyton provides for taxes at 25% of pretax income (20% Federal, 5% state). Stockholder Equity Peyton Approved prides itself on transparency with shareholders and investors. The company has added two storefront locations and launched a new marketing campaign, which is estimated to bring in 20,000 new customers over the next 6 months. The company expects this expansion will require an additional $1,000,000 of capital and generate an additional $600,000 of after-tax profit. The options are: 1) Issuing an additional $1,000,000 of 10%, 100-par convertible preferred stock (same class as is currently outstanding) 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 Determine the impact on earnings per share for each option. Postretirement Benefits Peyton Approved has revised its postretirement plan. It will now provide health insurance to retired employees. Management has 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 pension liability of $107,041.70.  The estimated cost of retired employees’ health insurance is $43,718.91.  Prepare adjusting entries for the pension liability and the health insurance liability Leases  Six ovens were rented on December 31, with $20,000 charged to rent expense. The lease runs for 6 years with an implicit interest rate of 5%. At the end of the 6 years, Peyton will own them. Make any necessary adjusting entries. Other Items  On December 31, 20XX, the company repaired a packaging machine at cost of $27,000.00. It is expected that the repair will extend 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. The patent took effect on 1/1/20XX and provides 20 years of protection. The $50,000 amount was incorrectly charged to Misc. Expense Do I have the correct trial balance figures of $686,393.67 ?? Thanks!!

Answer 1

Trial Balance
As of December 31, 2017				Adjusting entries
Accounts	Debit	Credit		Debit		Credit	Debit	Credit
Cash	1,488,999.34				(5)	20,000.00	1,468,999.34
Marketable Securities	5,500,000.00				(1)	265,000.00	5,235,000.00
Accounts Receivable	7,092,495.88						7,092,495.88
Prepaid Rent	71,877.07						71,877.07
Prepaid Insurance	207,834.14						207,834.14
Baking Supplies	1,605,098.52						1,605,098.52
Merchandise Inventory	128,152.63						128,152.63
Miscellaneous Supplies	17,647.42						17,647.42
Land	250,000.00						250,000.00
Building	1,250,000.00						1,250,000.00
Baking Equipment	2,254,140.00		(4)	101,513.84			2,355,653.84
Accumulated Depreciation		328,282.00			(5)	16,918.97		345,200.97
Patent
Accounts Payable		1,555,212.85						1,555,212.85
Wages Payable		250,203.31						250,203.31
Interest Payable		21,888.22						21,888.22
Current Portion of Bonds Payable		1,000,000.00						1,000,000.00
Income Taxes Currently Payable		1,042,118.16			(2)	375.00		1,042,493.16
Accrued Pension Liability					(6)	107,041.70		107,041.70
Accrued Employees Health Insurance					(6)	43,718.91		43,718.91
Lease Liability			(5)	14,924.31	(4)	101,513.84		86,589.53
								0.00
Deferred Tax Liability					(3)	52,325.25		52,325.25
Bonds Payable		4,000,000.00						4,000,000.00
Preferred Stock		500,000.00						500,000.00
Common Stock		1,750,000.00						1,750,000.00
Beginning Retained earnings		2,213,122.59						2,213,122.59
Dividends - Preferred	50,000.00						50,000.00
Dividends - Common	5,250,000.00						5,250,000.00
Bakery Sales		33,881,157.15						33,881,157.15
Merchandise Sales		124,795.80						124,795.80
Cost of Goods Sold - Baked	10,954,907.36						10,954,907.36
Cost of Goods Sold - Merchandise	88,994.79						88,994.79
Rent Expense	1,576,731.95						1,576,731.95
Wages Expense	2,604,526.23						2,604,526.23
Repairs and Maintenance	47,353.05						47,353.05
Business License Expense	211,757.65						211,757.65
Miscellaneous Supplies Expense	263,224.56						263,224.56
Miscellaneous Expense	141,171.08						141,171.08
Depreciation Expense	634,520.00		(5)	16,918.97			651,438.97
Insurance Expense	112,937.69						112,937.69
Advertising Expense	160,413.49						160,413.49
Interest Expense	484,703.27		(5)	5,075.69			489,778.96
Telephone Expense	50,821.34						50,821.34
Pension Expense			(6)	107,041.70			107,041.70
Retired Employees Health Insurance			(6)	43,718.91			43,718.91
Patent Amortization
Unrealized Gain/(Loss) on Marketable Securities			(1)	265,000.00			265,000.00
Held for Sale
Income Taxes	4,168,472.62		(2)	375.00			4,168,847.62
Deferred tax Expense			(3)	52,325.25			52,325.25
	46,666,780.08	46,666,780.08		606,893.67		606,893.67	46,973,749.45	46,973,749.45