Bridgeport Company recently hired a new accountant whose first task was to prepare the financial statements for the year ended December 31, 2021. The following is what he produced: $396.000 $5,600 3.400 9.000 387,000 BRIDGEPORT COMPANY Income Statement December 31, 2021 Sales Less: Unearned revenue Purchase discounts Total revenue Cost of goods sold Purchases Less: Purchase returns and allowances Net purchases Add: Sales returns and allowances Cost of goods available for sale Add: Freight out Cost of selling merchandise Gross profit margin 231.500 4.000 235.500 7.400 242,900 9,400 252.300 134,700 134,700 4,400 10.400 Gross profit margin Operating expenses Freight in Insurance expense Interest expense Rent expense Salaries expense Total operating expenses Profit margin 2,400 17.900 42,100 77,200 57.500 Other revenues $1,400 3.300 4.700 Interest revenue Investment by owner Other expenses Depreciation expense Drawings by owner Profit from operations 6,400 48,500 54.900 (50.200) $7,300 $16.800 8.000 30,100 23,900 BRIDGEPORT COMPANY Balance Sheet Year Ended December 31, 2021 Assets Cash Accounts receivable Merchandise inventory, January 1, 2021 Merchandise inventory, December 31, 2021 Equipment $64.000 Less: loan payable (for equipment 49.900 purchase) Total assets Liabilities and Owner's Equity Long-term investment Accumulated depreciation-equipment Sales discounts Total liabilities Owner's equity Total liabilities and owner's equity 14,100 $92.900 $49.900 19.200 2.900 72.000 20.900 $92,900 The owner of the company, Lily Oliver, is confused by the statements and has asked you for your help. She doesn't understand how, if her Owner's Capital account was $69,300 at December 31, 2020. owner's equity is now only $20.900. The accountant tells you that $20.900 must be correct because the balance sheet is balanced. The accountant also tells you that he didn't prepare a statement of owner's equity because it is an optional statement. You are relieved to find out that, even though there are errors in the statements, the amounts used from the accounts in the general ledger are the correct amounts