Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

can you please answer them ASAP I have 2 mistakes in balance sheet and all last part Bridgeport Inc had the following long-term receivable account

can you please answer them ASAP
I have 2 mistakes in balance sheet and all last part
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Bridgeport Inc had the following long-term receivable account balances at December 31, 2019 Note receivable from sale of division $1.200.000 Note receivable from officer 400,000 Transactions during 2020 and other information relating to Bridgeport's long term receivables were as follows 2. N 3 1 The $1,200.000 note receivable is dated May 1, 2019. bears interest at 8%, and represents the balance of the consideration received from the sale of Bridgeport's electronics division to New York Company, Principal payments of $400.000 plus appropriate interest are due on May 1, 2020, 2021 and 2022. The first principal and interest wyment was made on May 1 2020. Collection of the note installments is reasonably assured The 5400.000 note receivable is dated December 31, 2019, bears interest at 7% and is due on December 31, 2022. The note is due from Sean May, president of Bridgeport Inc. and is collateralized by 10,000 shares of Bridgeport's common stock. Interest is payable annually on December 31, and all interest payments were paid on their due dates through December 31, 2020. The quoted market price of Bridgeport's common stock was 544 per share on December 31, 2020 On April 1, 2020. Bridgeport sold a patent to Pennsylvania Company in exchange for a $100,000 zero-interest bearing note due on April 1, 2022. There was no established exchange price for the patent, and the pote had no ready market. The prevailing rate of interest for a note of this type at April 1. 2020, was 10%. The present value of $1 for two periods at 10% is 0.826 use this factor). The patent had a carrying value of $40.000 at January 1, 2020, and the amortization for the year ended December 31, 2020, would have been $8.000. The collection of the note receivable from Pennsylvania is reasonably assured. On July 1, 2020, Bridgeport sold a parcel of land to Splinter Company for $200,000 under an installment sale contract. Splinter made a $60.000 cash down payment on July 1, 2020, and signed a 4-year 9X note for the $140.000 balance. The equal annual payments of principal and interest on the note will be $45,125 payable on July 1, 2021, through July 1, 2024 The land could have been sold at an established cash price of $200,000. The cost of the land to Bridgeport was $150.000, Circumstances are such that the collection of the installments on the note is reasonably assured 4 Your awer is correct Prepare the long term receivables section of Bridgeport's balance sheet at December 31, 2020. Round answer to decimal 5.125) BRIDGEPORT INC. Long-Term Receivables Section of Balance Sheet December 31, 2020 Not receivable from a division 400000 Notevole from other 450000 88795 Not receivable from sale of potent 107475 Installment contract receive 996270 Total long-term recevable e Textbook and Media Attempts 1 of 3 used BRIDGEPORT INC. Selected Balance Sheet Balances December 31, 2020 Current portion of long-term receivable 400000 Note receivable from sale of division 32525 Installment contract receivable 432525 Total current portion of long term receivables Accrued interest receivable 60000 Not receivable from sale of division 6300 Installment contract receivable 66300 Total accrued Interest receivable Prepare a schedule showing interest revenue from the long-term receivables that would pear on Crane's income statement for the year ended December 31, 2020. (Round answers to decimal places, es. 5125) CRANE INC. Interest Revenue from Long-Term Receivables December 31, 2020 $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

A Compilation Of University Level Assignments Marketing Audit Approach

Authors: Emeka Anyaduba

1st Edition

1475098057, 978-1475098051

More Books

Students also viewed these Accounting questions

Question

how to choose the appropriate test to analyse your data.

Answered: 1 week ago