2 Accounting Problems

Accounting Problem 1

Refer to Bridgeport Corp. png to complete the following activity

Blossom Incorporated decided to change from the FIFO method of valuing inventory to the weighted average method in July 2020 to present more relevant information for its financial statement users. The cumulative effect on prior years off retrospective app cation of the new inventory costing method was determined to be $15,000 net of $4,000 tax. As prices were decreasing, cost of goods sold is lower and ending inventory higher for the preceding period. Retained earnings on January 1, 2020 was $241,000. Blossom follows ASPE. Prepare a partial statement of retained earnings illustrating the adjusted balance of retained earnings. Blossom Incorporated Statement of Retained Earnings (Partial) V List of Accounts Assistance Used Prepare the adjusting journal entry for the change in the accounting policy. (Credit account titles are automatically indented when the amount is entered. Do not indent manually) Account Titles and Explanation Debit CreditBridgeport Corp. has decided to expand its operations. The bookkeeper recently completed the following statement of financial position in order to obtain additional funds for expansion: BRIDGEPORT CORP. Statement of Financial Position For the Year Ended December 31, 2020 Current assets Cash (net of bank overdraft of $31,000) 6 410,000 Accounts receivable (net) 422,000 Inventory at the lower of cost and net realizable value 501,000 FV-NI investments (at cost-fair value $170,000) 230,000 Property, plant, and equipment Buildings (net) 710,000 Equipment (net) 290,000 Land held for future use 305,000 Intangible assets Goodwill 87,000 Investment in bonds to collect cash flows, at amortized cost 102,000 Prepaid expenses 17,000 Current liabilities Accounts payable 205,000 Notes payable (due next year) 165,000 Pension obligation 99,000 Rent payable 61,000 Long-term liabilities Bonds payable 676.000 Shareholders' equity Common shares, unlimited authorized, 390,000 issued 390,000 Contributed surplus 280,000 Retained earnings