Six ovens were rented on December 31, with $20,000 charged to rent expense.

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.

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

CAPITAL LEASES

Calculate capital lease obligations
Prepare appropriate adjusting entries

PENSION PAYOUTS
Calculate pension liability
Calculate health insurance liability

Expert Solution

ekkarill92 answered 2 years ago

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Six ovens were rented on December 31, with $20,000 charged to rent expense.

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