Bridgeport Corp.s balance sheet at December 31, 2021, is presented below.
Cash $19,680
Accounts payable $20,480
Accounts receivable 36,400
Common stock ($10 par) 64,000
Allowance for doubtful accounts (1,200)
Retained earnings 101,920
Supplies 3,520
Land 32,000
Buildings 113,600
Accumulated depreciationbuildings (17,600) $186,400 $186,400
Bridgeport Corp.'s balance sheet at December 31, 2021, is presented below. BRIDGEPORT CORP. Balance Sheet December 31, 2021 Cash $19,680 36,400 (1,200) Accounts receivable Accounts payable Common stock ($10 par) Retained earnings $20,480 64,000 Allowance for doubtful accounts 101.920 Supplies 3,520 Land 32.000 Buildings Accumulated depreciation-buildings 113.600 (17,600) $186,400 $186,400 During 2022, the following transactions occurred. 1. On January 1, Bridgeport issued 960 shares of $40 par, 7% preferred stock for $39,360. 2. On January 1, Bridgeport also issued 720 shares of the $10 par value common stock for $16.800. 3. Bridgeport performed services for $256,000 on account. 4. On April 1, 2022, Bridgeport collected fees of $28,800 in advance for services to be performed from April 1, 2022, to March 31, 2023. 5. Bridgeport collected $220.800 from customers on account. 6. Bridgeport bought $28,080 of supplies on account. 7. Bridgeport paid $25,760 on accounts payable. 8. Bridgeport reacquired 320 shares of its common stock on June 1 for $28 per share. 9. Paid other operating expenses of $150,560. 10. On December 31, 2022, Bridgeport declared the annual preferred stock dividend and a $1.20 per share dividend on the outstanding common stock, all payable on January 15, 2023. 11. An account receivable of $1,360 which originated in 2022 is written off as uncollectible. Adjustment data: 1. A count of supplies indicates that $4,720 of supplies remain unused at year-end. 2. Recorded revenue from item 4 above. 3. The allowance for doubtful accounts should have a balance of $2,800 at year end. 4. Depreciation is recorded on the building on a straight-line basis based on a 30-year life and a salvage value of $8,000. 5. The income tax rate is 30%. (Hint: Prepare the income statement up to income before taxes and multiply by 30% to compute the amount.) (a) Your Answer Correct Answer (Used) Your answer is correct. Prepare journal entries for the transactions listed above and adjusting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Record journal entries in the order presented in the problem.) No. Account Titles and Explanation Debit Credit 1. Cash 39360 Preferred Stock 38400 Paid-in Capital in Excess of Par Value-Preferred Stock 960 2. Cash 16800 Common Stock 7200 Paid-in Capital in Excess of Par Value-Common Stock 9600 3. Accounts Receivable 256000 Service Revenue 256000 4. Cash 28800 Unearned Service Revenue 28800 5. Cash 220800 Accounts Receivable 220800 6. Supplies 28080 Accounts Payable 28080 7. Accounts Payable Accounts Payable 5760 Cash 25760 8. 8960 Treasury Stock [ cash Cash 8960 Other Operating Expenses 150560 Cash 150560 Cash Dividends 10848 Dividends Payable 10848 11. Allowance for Doubtful Accounts 1360 Accounts Receivable 1360 Adjusting entries 1. Supplies Expense 26880 Supplies 26880 Unearned Service Revenue 21600 Service Revenue 21600 Bad Debt Expense 2960 Allowance for Doubtful Accounts 2960 Depreciation Expense 3520 Accumulated Depreciation-Buildings 3520 Income Tax Expense 28104 Income Taxes Payable 28104 e Textbook and Media Solution List of Accounts Attempts: unlimited (b) Prepare an adjusted trial balance at December 31, 2022. BRIDGEPORT CORP. Adjusted Trial Balance December 31, 2022 Debit Credit Total
