Question

The accounts below appear in the ledger of Bridgeport Company. Retained Earnings Dr. Cr. Bal. Jan. 1, 2020 Credit Balance $42,100 Aug. 15 Dividends (cash) $14,800 27,300 Dec. 31 Net Income for 2020 $39,900 67,200 Equipment Dr. Cr. Bal. Jan. 1, 2020 Debit Balance $139,300 Aug. 3 Purchase of Equipment $62,100 201,400 Sept. 10 Cost of Equipment Constructed 48,000 249,400 Nov. 15 Equipment Sold $56,200 193,200 Accumulated Depreciation—Equipment Dr. Cr. Bal. Jan. 1, 2020 Credit Balance $84,400 Apr. 8 Major Repairs $20,800 63,600 Nov. 15 Accum. Depreciation on Equipment Sold 24,900 38,700 Dec. 31 Depreciation for 2020 $16,700 55,400 Prepare entries in journal form for all adjustments that should be made on a worksheet for a statement of cash flows. The loss on sale of equipment (November 15) was $5,800. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

Answer 1

No.	Account titles and explanation	Debit	Credit
1	Retained Earnings	$14,800
	Financing—Cash Dividends		$14,800
2	Operating—Net Income	$39,900
	Retained Earnings		$39,900
3	Operating—Depreciation Expense	$16,700
	Accumulated Depreciation—Equipment		$16,700
4	Equipment	$110,100
	Investing—Purchase of Equipment		$62,100
	Investing—Construction of Equipment		$48,000
5	Accumulated Depreciation—Equipment	$20,800
	Investing—Extraordinary Repairs to Equipment		$20,800
6	Operating—Loss on Sale of Equipment	$5,800
	Accumulated Depreciation—Equipment	$24,900
	Investing—Sale of Equipment	$25,500
	Equipment		$56,200