Bridgeport Corp. prepares quarterly financial statements. The post-closing trial balance at December 31, 2021, is presented below.

BRIDGEPORT CORP. Post-Closing Trial Balance December 31, 2021
		Debit		Credit
Cash		$23,000
Accounts Receivable		23,000
Allowance for Doubtful Accounts				$1,300
Equipment		19,000
Accumulated DepreciationEquipment				15,000
Buildings		106,000
Accumulated DepreciationBuildings				15,000
Land		20,000
Accounts Payable				12,300
Common Stock				85,000
Retained Earnings				62,400
		$191,000		$191,000

During the first quarter of 2022, the following transactions occurred:

1.		On February 1, Bridgeport collected fees of $15,600 in advance. The company will perform $1,300 of services each month from February 1, 2022, to January 31, 2018.
2.		On February 1, Bridgeport purchased computer equipment for $8,100 plus sales taxes of $900. $2,700 cash was paid with the rest on account. Check #455 was used.
3.		On March 1, Bridgeport acquired a patent with a 10-year life for $9,000 cash. Check #456 was used.
4.		On March 28, Bridgeport recorded the quarters sales in a single entry. During this period, Bridgeport had total sales of $200,000 (not including the sales referred to in item 1 above). All of the sales were on account.
5.		On March 29, Bridgeport collected $193,000 from customers on account.
6.		On March 29, Bridgeport paid $16,300 on accounts payable. Check #457 was used.
7.		On March 29, Bridgeport paid other operating expenses of $95,500. Check #458 was used.
8.		On March 31, Bridgeport wrote off a receivable of $200 for a customer who declared bankruptcy.
9.		On March 31, Bridgeport sold for $1,940 equipment that originally cost $13,000. It had an estimated life of 5 years and salvage of $1,000. Accumulated depreciation as of December 31, 2021, was $9,600 using the straight line method. (Hint:Record depreciation on the equipment sold, then record the sale.)

Bank reconciliation data and adjustment data:

1.

The company reconciles its bank statement every quarter. Information from the December 31, 2021, bank reconciliation is:

Deposit in transit:		12/30/2021		$6,000
Outstanding checks		#440		3,400
		#452		500
		#453		700
		#454		5,890

The bank statement received for the quarter ended March 31, 2022, is as follows:

Beginning balance per bank		$27,490
Deposits: 1/2/2022, $6,000; 2/2/2022, $15,600; 3/30/2022, $193,000		214,600
Checks: #452, $500; #453, $700; #457, $16,300; #458, $95,500		(113,000)
Debit memo: Bank service charge (record as operating expense)		(100)
Ending bank balance		$128,990

2.

Record revenue earned from item 1 above.

3.

$25,200 of accounts receivable at March 31, 2022, are not past due yet. The bad debt percentage for these is 4%. The balance of accounts receivable are past due. The bad debt percentage for these is 22.00%. Record bad debt expense. (Hint:You will need to compute the balance in accounts receivable before calculating this.)

4.

Depreciation is recorded on the equipment still owned at March 31, 2022. The new equipment purchased in February is being depreciated on a straight-line basis over 5 years and salvage value was estimated at $1,200. The old equipment still owned is being depreciated over a 10-year life using straight-line with no salvage value.

5.

Depreciation is recorded on the building on a straight-line basis based on a 30-year life and a salvage value of $10,000.

6.

Amortization is recorded on the patent.

7.

The income tax rate is 30%. This amount will be paid when the tax return is due in April. (Hint: Prepare the income statement up to income before taxes and multiply by 30% to compute the amount.)

Enter the December 31, 2021, balances in ledger accounts using T-accounts. (Post entries in the order displayed in the problem statement.)

Cash

Accounts Receivable

Allowance For Doubtful Accounts

Equipment

Accumulated DepreciationEquipment

Land

Buildings

Accumulated DepreciationBuildings

Accounts Payable

Common Stock

Retained Earnings