Bridgeport Enterprises Reported the Following Figures from Its Adjusted Trial

question 112

Essay

Bridgeport Enterprises reported the following figures from its adjusted trial balance for its first year of business, which ended on June 30, 2019.
$$\begin{array} { | l | r | } \hline \text { Accounts Payable } & \$ 4,800 \\\hline \text { Accounts Receivable } & 3,600 \\\hline \text { Accrued Liabilities } & 1,400 \\\hline \text { Administrative Expenses } & 3,800 \\\hline \text { Cash } & 4,500 \\\hline \text { Common Stock } & 7,550 \\\hline \text { Cost of Goods Sold } & 23,500 \\\hline \text { Dividends } & 2,000 \\\hline \text { Equipment, net } & 8,500 \\\hline \text { Interest Expense } & 150 \\\hline \text { Merchandise Inventory } & 2,500 \\\hline \text { Net Sales Revenue } & 35,000 \\\hline \text { Notes Payable, Long-term } & 1,500 \\\hline \text { Selling Expenses } & 1,700 \\\hline\end{array}$$ Requirements:
a. Prepare a multi-step income statement.
b. Prepare the statement of retained earnings.
c. Prepare a classified balance sheet.
d. Compute the gross profit percentage.

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Definitions:

Normal Level

A standard or average condition, often referring to the usual level of production activity or economic operation under normal circumstances.

Support Departments

Divisions within an organization that provide essential services or support to production departments but do not directly create products or services.

Production Departments

Divisions within a manufacturing organization responsible for specific production processes or tasks.

Upstream Costs

Expenses incurred in the early stages of the production process, typically in exploration, development, and extraction in industries like oil and gas.