Your firm has been engaged to examine the financial statements of Bridgeport Corporation for the year $2025.$ The bookkeeper who

maintains the financial records has prepared all the unaudited financial statements for the corporation since its organization on

January $2,2020.$ The client provides you with the following information.

An analysis of current assets discloses the follawing

Other assets include:

Current liabilities include:

Long$-$term liabilities include:

Unearned reverue

Dividends payable $[$cash$]$

B$\%$ bonds payable $($due May $1,2030)$

Stockholders' equity includes:

The supplementary information belaw is also provided.

On May $1,2025,$ the corporation issued at $95\mathrm{.}30,$$$790,000$ of bonds to finance plant expansion. The long$-$term bond

agreement provided for the annual payment of interest every May $1.$ The existing plant was pledged as security for the loan.

Use the straight$-$Fine method for discount amortization.

The bookkeeper made the follawing mistakes.

a$.$ In $2023,$ the ending imventory was overstated by $$181,000.$ The ending inventories for $2024$ and $2025$ were correctly

computed.

b$.$ In $2025,$ accrued wages in the amount of $$228\mathrm{.}000$ were omitted from the balance sheet, and these experses were not

charged on the income statement.

c$.$ In $2025,$ a gain of $$172,000($net of tax$)$ on the sale of certain plant assets was credited directly to retained earnings.

A major competitor has introduced a line of products that will compete directly with Bridgeport's primary line, naw being

produced in a specially designed new plant. Because of marufacturing innovations, the competitor's line will be of comparable

quality but priced $50\%$ below Bridgeport's line. The competitor announced its new line on January $14,2026.$ Bridgeport

indicates that the company will meet the lower prices that are high enough to cover variable manufacturing and selling

expenses, but permit recovery of only a portion of fixed costs

You learned on January $28,2026,$ prior to completion of the audit, of heavy damage because of a recent fire to one of

Bridgeport's two plants; the lass will nat be reimbursed by insurance. The newspapers described the event in detail.

Analyze the above information to prepare a corrected bal ance sheet for Bridgeport in accordance with proper accounting and

reporting principles. Prepare a description of any notes that might need to be prepared. The books are clased and adjustments to

income are to be made through retained earnings. $($List Current Assets in arder of liquidity.$)$