Bruin Corporation has been authorized to issue 5,000 shares of 12 percent noncumulative, nonparticipating preferred stock with a par value of $100 per share and 200,000 shares of common stock with a par value of $10 per share. As of December 31, 2019, 2,100 shares of preferred stock and 29,000 shares of common stock had been issued. A condensed trial balance as of December 31, 2019, is provided below.

Bruin Corporation
Trial Balance (Condensed)
December 31, 2019
Account Name	Debit		Credit
Cash	46,070
Accounts Receivable	149,300
Allowance for Doubtful Accounts			1,500
Income Tax Refund Receivable
Inventory	100,000
Land	115,000
Buildings	372,000
Accumulated DepreciationBuildings			46,500
Equipment	280,000
Accumulated DepreciationEquipment			28,000
Accounts Payable			94,020
Dividends PayablePreferred			25,200
Dividends PayableCommon			26,100
Accrued Expenses Payable
Income Tax Payable
Preferred Stock, 12%			210,000
Paid-in Capital in Excess of Par ValuePreferred			21,000
Common Stock			290,000
Retained Earnings			120,500
Sales (Net)			1,075,550
Purchases	550,000
Selling Expenses Control	165,800
General Expenses Control	79,700
Amortization of Organization Costs
Income Tax Expense	80,500
Income Summary
Totals	1,938,370		1,938,370

Additional information:

1. Ending merchandise inventory is $120,000. Close the beginning inventory and set up the ending inventory.
2. Depreciation of buildings is $15,500 ($11,500 is selling expense; $4,000 is general expense).
3. Depreciation of equipment is $28,000 ($18,500 is selling expense; $9,500 is general expense).
4. Accrued expenses are $7,000 ($5,500 is selling expense; $1,500 is general expense).
5. The balance in Allowance for Doubtful Accounts is adequate.
6. The $80,500 balance in Income Tax Expense represents the quarterly tax deposits. Adjust the Income Tax Expense account using the following procedure:

(1) Extend the adjusted income and expense items to the Income Statement columns of the worksheet and compute the net income before taxes.

(2) Assuming that taxable income is the same as net income before income taxes, use Table 1 to compute the federal income tax. Round the computed tax to the nearest whole dollar. Ignore state and local income taxes.

Required:

1. 1. & 3. Complete the worksheet. Enter the values of Selling Expenses control account and General Expenses control account individually.

2. Prepare the general journal entries from the above transactions as of December 31, 2019.
3. Prepare a condensed income statement for the year.
4. Prepare a balance sheet as of December 31, 2019. The balance of Retained Earnings on January 1, 2019, was $171,800. All dividends for the year were declared on December 5, 2019, and are payable January 4, 2020.
5. Journalize the closing entries on December 31.

Analyze: Assume that dividends were declared in equal amounts over the four quarters of 2019. What percentage of Bruin Corporations annual income before tax was spent on dividends to stockholders? (Round your answer to 2 decimal places, i.e., 0.1234 should be entered as 12.34%)