Bridgeport Corp. has manufactured a broad range of quality products since 1991. The operating cycle of the business is less than one year. The following information is available for the company's fiscal year ended February 28, 2020. Bridgeport follows ASPE. 1. Bridgeport has $4 million of bonds payable outstanding at February 28, 2020, which were issued at par in 2009 and are due in 2029. The bonds carry an interest rate of 7%, payable semi-annually each June 1 and December 1. 2. Bridgeport has several notes payable outstanding with its primary banking institution at February 29,2020. In each case, the annual interest is due on the anniversary date of the note each year (same as the due dates listed). The notes are as follows: Interest Rate Due Date Amount Due Apr. 1.2020 $156.000 796 Jan. 31, 2021 198,000 8% Mar. 15. 2021 492,000 6% Oct. 30. 2022 252,000 7% 3. Bridgeport uses the expense approach to account for assurance-type warranties. The company has a two-year warranty on selected products, with an estimated cost of 1% of sales being returned in the 12 months following the sale, and a cost of 1.5% of sales being returned in months 13 to 24 following the sale. The warranty liability outstanding at February 29, 2019, was $5,700. Sales of warrantied products in the year ended February 29, 2020, were $155,000. Actual warranty costs incurred during the current fiscal year are as follows: Warranty claims honoured on 2018-2019 sales $ 5.200 Warranty claims honoured on 2019-2020 sales 900 $ 16:00 $ 6,100 4 The accounts payable subsidiary ledger shows balances of regular trade payables for supplies and purchases of goods and services on open account. Included in the net balance of $394,000 are accounts with credit balances totalling $412,000 and accounts with debit balances totalling $18.000 at February 29, 2020. Included in trade payables is a loan of $23.000 owing to an affiliated company. 5. The following information relates to Bridgeport's payroll for the month of February 2020. Bridgeport's required contribution for El is 1.4 times that of the employee contribution; for CPP, it is 1.0 times that of the employee contribution. Salaries and wages outstanding at February 29, 2020 $235.000 For the last payroll of the year, the following unpaid balances apply: El withheld from employees 9,300 CPP withheld from employees 17,200 Income taxes withheld from employees 49.200 Union dues withheld from employees 22.300 6. Bridgeport regularly pays GST owing to the Receiver General for Canada on the 15th of the month. Bridgeport's GST transactions include the GST that it charges to customers and the GST that it is charged by suppliers of goods and services. During February 2020, purchases attracted $27,000 of GST, while the GST charged on invoices to customers totalled $40,000. At January 31, 2020, the balances in the GST Receivable and GST Payable accounts were $34.100 and $59.400. respectively 7. Other miscellaneous liabilities included $50,000 of dividends payable on March 15, 2020: $25,000 of bonuses payable to company executives (75% payable in September 2020 and 25% payable in March 2021); and $75,000 in accrued audit fees covering the year ended February 29, 2020. 8. Bridgeport sells gift cards to its customers. The company does not set a redemption date and customers can use their cards at any time. At March 1, 2019. Bridgeport had a balance outstanding of $95.000 in its Unearned Revenue account Bridgeport received $22.500 in cash for gift cards purchased during the current year, and $37.500 in redemptions took place during the year. Based on past experience, 15% of customer gift card balances never get redeemed. At the end of each year, Bridgeport recognizes 15% of the opening balance of Unearned Revenue as earned during the year. Prepare the current liability section of the February 29,2020 balance sheet of Bridgeport Corp. (Round answers to decimal places, eg. 5,275.) Bridgeport Corp. Statement of Financial Position (Partial) > > e Textbook and Media Save for Later Attempts: 0 of 5 used Submit
