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, 20X1, 2,600 shares of preferred stock and 19,000 shares of common stock had been issued. A condensed trial balance as of December 31, 20X1, is provided below.

Bruin Corporation
Trial Balance (Condensed)
December 31, 20X1
Account Name	Debit		Credit
Cash	45,570.00
Accounts Receivable	148,800.00
Allowance for Doubtful Accounts			1,000.00
Income Tax Refund Receivable
Inventory	102,000.00
Land	120,000.00
Buildings	396,000.00
Accumulated DepreciationBuildings			49,500.00
Equipment	290,000.00
Accumulated DepreciationEquipment			29,000.00
Accounts Payable			167,820.00
Dividends PayablePreferred			31,200.00
Dividends PayableCommon			17,100.00
Accrued Expenses Payable
Income Tax Payable
Preferred Stock, 12%			260,000.00
Paid-in Capital in Excess of Par ValuePreferred			26,000.00
Common Stock			190,000.00
Retained Earnings			118,000.00
Sales (Net)			1,050,550.00
Purchases	500,000.00
Selling Expenses Control	166,800.00
General Expenses Control	80,700.00
Amortization of Organization Costs
Income Tax Expense	90,300.00
Income Summary
Totals	1,940,170.00		1,940,170.00

Additional information:

1. Ending merchandise inventory is $125,000. Close the beginning inventory and set up the ending inventory.
2. Depreciation of buildings is $16,500 ($12,000 is selling expense; $4,500 is general expense).
3. Depreciation of equipment is $29,000 ($19,000 is selling expense; $10,000 is general expense).
4. Accrued expenses are $6,000 ($5,000 is selling expense; $1,000 is general expense).
5. The balance in Allowance for Doubtful Accounts is adequate.
6. The $90,300 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) Assume that the federal corporate income tax is $90,415. Ignore state and local income taxes.

Required:

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

1. Prepare the general journal entries from the above transactions as of December 31, 20X1.
2. Prepare a condensed income statement for the year.
3. Prepare a balance sheet as of December 31, 20X1. The balance of Retained Earnings on January 1, 20X1, was $166,300. All dividends for the year were declared on December 5, 20X1, and are payable January 4, 20X2.
4. Journalize the closing entries on December 31.

Analyze: Assume that dividends were declared in equal amounts over the four quarters of 20X1. What percentage of Bruin Corporations annual income before tax was spent on dividends to stockholders?

Journal entry worksheet Record the adjustment for beginning inventory. Note: Enter debits before credits. Journal entry worksheet 5 Record the adjustment for ending inventory. Note: Enter debits before credits. Journal entry worksheet 1 Note: Enter debits before credits. Journal entry worksheet 1 Record the depreciation of equipment. Note: Enter debits before credits. Journal entry worksheet 123 Note: Enter debits before credits. Journal entry worksheet 123 Note: Enter debits before credits. Journal entry worksheet 1 4 5 Record the entry to adjust the Income Tax Expense account. Note: Enter debits before credits. Complete the worksheet. Enter the values of Selling Expenses control account and General Expenses control account individually. Prepare a condensed income statement for the year. Prepare a balance sheet as of December 31,201. The balance of Retained Earnings on January 1,201, was $166,300. All dividends for the year were declared on December 5,201, and are payable January 4,202. Journal entry worksheet Note: Enter debits before credits. Journal entry worksheet Record the closing entry for expenses. Note: Enter debits before credits. Journal entry worksheet Record the closing entry for the balance of income summary. Note: Enter debits before credits. Complete this question by entering your answer in the tabs below. Assume that dividends were declared in equal amounts over the four quarters of 201. What percentage of Bruin Corporation's 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% ) Journal entry worksheet Record the adjustment for beginning inventory. Note: Enter debits before credits. Journal entry worksheet 5 Record the adjustment for ending inventory. Note: Enter debits before credits. Journal entry worksheet 1 Note: Enter debits before credits. Journal entry worksheet 1 Record the depreciation of equipment. Note: Enter debits before credits. Journal entry worksheet 123 Note: Enter debits before credits. Journal entry worksheet 123 Note: Enter debits before credits. Journal entry worksheet 1 4 5 Record the entry to adjust the Income Tax Expense account. Note: Enter debits before credits. Complete the worksheet. Enter the values of Selling Expenses control account and General Expenses control account individually. Prepare a condensed income statement for the year. Prepare a balance sheet as of December 31,201. The balance of Retained Earnings on January 1,201, was $166,300. All dividends for the year were declared on December 5,201, and are payable January 4,202. Journal entry worksheet Note: Enter debits before credits. Journal entry worksheet Record the closing entry for expenses. Note: Enter debits before credits. Journal entry worksheet Record the closing entry for the balance of income summary. Note: Enter debits before credits. Complete this question by entering your answer in the tabs below. Assume that dividends were declared in equal amounts over the four quarters of 201. What percentage of Bruin Corporation's 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% )