Bridgeport Enterprises Ltd. sells a specialty part that is used in widescreen televisions and provides the ultimate in screen clarity. To promote sales of its product, Bridgeport launched a program with some of its smaller customers. In exchange for making Bridgeport their exclusive supplier, Bridgeport guarantees these customers to their creditors so that Bridgeport will assume the customers' long- term debt in the event of non-payment to the creditors. In addition to charging for parts, Bridgeport also charges a fee to customers who take the guarantee program. It bases the fee on the time frame that the guarantee covers, which is typically three years. In the current fiscal year, the fees collected amounted to $32,880 for the three-year coverage period. Six months before Bridgeport's fiscal year end, one of its customers, Bramble Corp., began to experience financial difficulties and missed two months of mortgage payments. Bramble's lender then called on Bridgeport to make the mortgage payments. At its fiscal year end on December 31, 2023, Bridgeport had recorded a receivable of $16,440 related to the payments made by Bridgeport on Bramble's behalf. Bramble owes the lender an additional $32,880 at this point. The lender is thinking of putting a lien on Bramble's assets that were pledged as collateral for the loans. However, the collateral involves rights to the development of new state-of-the-art three-dimensional television technology that is still unproven. Bridgeport follows ASPE. (a) Prepare all required journal entries and adjusting entries on Bridgeport's books to recognize the transactions and events described above. (Hint: Use the accounts Service Revenue, Loss on Guarantee, and Liability for Guarantee.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)

Bridgeport Enterprises Ltd. sells a specialty part that is used in widescreen televisions and provides the ultimate in screen clarity. To promote sales of its product, Bridgeport launched a program with some of its smaller customers. In exchange for making Bridgeport their exclusive supplier, Bridgeport guarantees these customers to their creditors so that Bridgeport will assume the customers' longterm debt in the event of non-payment to the creditors. In addition to charging for parts, Bridgeport also charges a fee to customers who take the guarantee program. It bases the fee on the time frame that the guarantee covers, which is typically three years. In the current fiscal year, the fees collected amounted to $32,880 for the three-year coverage period. Six months before Bridgeport's fiscal year end, one of its customers, Bramble Corp., began to experience financial difficulties and missed two months of mortgage payments. Bramble's lender then called on Bridgeport to make the mortgage payments. At its fiscal year end on December 31,2023, Bridgeport had recorded a receivable of $16,440 related to the payments made by Bridgeport on Bramble's behalf. Bramble owes the lender an additional $32,880 at this point. The lender is thinking of putting a lien on Bramble's assets that were pledged as collateral for the loans. However, the collateral involves rights to the development of new state-of-the-art three-dimensional television technology that is still unproven. Bridgeport follows ASPE. (a) Prepare all required journal entries and adjusting entries on Bridgeport's books to recognize the transactions and events described above. (Hint: Use the accounts Service Revenue, Loss on Guarantee, and Liability for Guarantee.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)