Problem 3-8 BRIDGEPORT ADVERTISING TRIAL BALANCE DECEMBER 31, 2017 Unadjusted Adjusted Dr. Cr. Dr. Cr. $148,820 $148,820 $158,950 $158,950 No. Date Account Titles and Explanation Debit Credit (To record accrued service revenue) (To record supplies used) (To expired insurance) (To record depreciation on equiment) (To record interest accrued on the note) (To record service revenue earned) (To record accrued wages) Assets Liabilities and Stockholders’ Equity % Open Show Work SAVE FOR LATER SUBMIT ANSWER Problem 3-8 Bridgeport Advertising was founded by Murali Vedula in January 2015. Presented below are both the adjusted and unadjusted trial balances as of December 31, 2017. BRIDGEPORT ADVERTISING TRIAL BALANCE DECEMBER 31, 2017 Unadjusted Adjusted Dr. Cr. Dr. Cr.Cash$16,740$16,740Accounts Receivable19,17023,012Supplies9,7606,845Prepaid Insurance4,2202,625Equipment64,70064,700Accumulated Depreciation- Equipment$24,120$29,050Notes Payable8,6008,600Accounts Payable1,8901,890Interest Payable0602Unearned Service Revenue5,3503,405Salaries and Wages Payable0756Common Stock19,22019,220Retained Earnings27,24727,247Dividends19,30019,300Service Revenue62,39368,180Salaries and Wages Expense9,40010,156Insurance Expense1,595Interest Expense602Depreciation Expense4,930Supplies Expense2,915Rent Expense5,5305,530 $148,820 $148,820 $158,950 $158,950Journalize the annual adjusting entries that were made. (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.) No. Date Account Titles and Explanation Debit Credit1.Dec. 31 (To record accrued service revenue)2.Dec. 31 (To record supplies used)3.Dec. 31 (To expired insurance)4.Dec. 31 (To record depreciation on equiment)5.Dec. 31 (To record interest accrued on the note)6.Dec. 31 (To record service revenue earned)7.Dec. 31 (To record accrued wages)Prepare an income statement for the year ended December 31. (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) BRIDGEPORTADVERTISING Income Statement December 31, 2017For the Year Ended December 31, 2017For the Quarter Ended December 31, 2017 DividendsExpensesNet Income / (Loss)Retained Earnings, Janaury 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues $ DividendsExpensesNet Income / (Loss)Retained Earnings, Janaury 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues $ Dividends Expenses Net Income / (Loss) Retained Earnings, Janaury 1 Retained Earnings, December 31 Revenues Total Expenses Total Revenues DividendsExpensesNet Income / (Loss)Retained Earnings, Janaury 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues$ Prepare a retained earnings statement for the year ended December 31. (List items that increase retained earnings first.) BRIDGEPORTADVERTISING Retained Earnings Statement December 31, 2017For the Year Ended December 31, 2017For .

1. Problem 3-8
BRIDGEPORT ADVERTISING
TRIAL BALANCE
DECEMBER 31, 2017
Unadjusted
Adjusted
Dr.
Cr.
Dr.
Cr.
$148,820
$148,820
$158,950
$158,950
No.
Date
Account Titles and Explanation
Debit
Credit
(To record accrued service revenue)
(To record supplies used)
(To expired insurance)
(To record depreciation on equiment)
(To record interest accrued on the note)
(To record service revenue earned)
(To record accrued wages)
Assets
Liabilities and Stockholders’ Equity
%
Open Show Work
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SUBMIT ANSWER
Problem 3-8 Bridgeport Advertising was founded by Murali Vedula in January 2015. Presented
below are both the adjusted and unadjusted trial balances as of December 31, 2017.

2. BRIDGEPORT ADVERTISING
TRIAL BALANCE
DECEMBER 31, 2017
Unadjusted
Adjusted
Dr.
Cr.
Dr.
Cr.Cash$16,740$16,740Accounts Receivable19,17023,012Supplies9,7606,845Prepaid
Insurance4,2202,625Equipment64,70064,700Accumulated Depreciation-
Equipment$24,120$29,050Notes Payable8,6008,600Accounts Payable1,8901,890Interest
Payable0602Unearned Service Revenue5,3503,405Salaries and Wages Payable0756Common
Stock19,22019,220Retained Earnings27,24727,247Dividends19,30019,300Service
Revenue62,39368,180Salaries and Wages Expense9,40010,156Insurance Expense1,595Interest
Expense602Depreciation Expense4,930Supplies Expense2,915Rent Expense5,5305,530
$148,820
$148,820
$158,950
$158,950Journalize the annual adjusting entries that were made. (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.)
No.
Date
Account Titles and Explanation
Debit
Credit1.Dec. 31
(To record accrued service revenue)2.Dec. 31

3. (To record supplies used)3.Dec. 31
(To expired insurance)4.Dec. 31
(To record depreciation on equiment)5.Dec. 31
(To record interest accrued on the note)6.Dec. 31
(To record service revenue earned)7.Dec. 31

4. (To record accrued wages)Prepare an income statement for the year ended December 31. (Enter
loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
BRIDGEPORTADVERTISING
Income Statement
December 31, 2017For the Year Ended December 31, 2017For the Quarter Ended December
31, 2017
DividendsExpensesNet Income / (Loss)Retained Earnings, Janaury 1Retained Earnings,
December 31RevenuesTotal ExpensesTotal Revenues
$
DividendsExpensesNet Income / (Loss)Retained Earnings, Janaury 1Retained Earnings,
December 31RevenuesTotal ExpensesTotal Revenues
$
Dividends Expenses Net Income / (Loss) Retained Earnings, Janaury 1 Retained
Earnings, December 31 Revenues Total Expenses Total Revenues
DividendsExpensesNet Income / (Loss)Retained Earnings, Janaury 1Retained Earnings,
December 31RevenuesTotal ExpensesTotal Revenues$
Prepare a retained earnings statement for the year ended December 31. (List items that increase
retained earnings first.)
BRIDGEPORTADVERTISING
Retained Earnings Statement

5. December 31, 2017For the Year Ended December 31, 2017For the Quarter Ended December
31, 2017
DividendsExpensesNet Income / (Loss)Retained Earnings, Janaury 1Retained Earnings,
December 31RevenuesTotal ExpensesTotal Revenues$
AddLess :
DividendsExpensesNet Income / (Loss)Retained Earnings, Janaury 1Retained Earnings,
December 31RevenuesTotal ExpensesTotal Revenues
AddLess :
DividendsExpensesNet Income / (Loss)Retained Earnings, Janaury 1Retained Earnings,
December 31RevenuesTotal ExpensesTotal Revenues
DividendsExpensesNet Income / (Loss)Retained Earnings, Janaury 1Retained Earnings,
December 31RevenuesTotal ExpensesTotal Revenues$
Prepare a classified balance sheet at December 31. (List current assets in order of liquidity.)
BRIDGEPORTADVERTISING
Balance Sheet
December 31, 2017For the Year Ended December 31, 2017For the Quarter Ended December
31, 2017
Assets
Current AssetsCurrent LiabilitiesIntangible AssetsLiabilitiesLong-term InvestmentsLong-term
LiabilitiesProperty, Plant and EquipmentStockholders’ EquityTotal AssetsTotal Current
AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and
Stockholders’ EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property,
Plant and EquipmentTotal Stockholders' Equity
$
Current Assets Current Liabilities Intangible Assets Liabilities Long-term
Investments Long-term Liabilities Property, Plant and Equipment Stockholders’

6. Equity Total Assets Total Current Assets Total Current Liabilities Total Intangible
Assets Total Liabilities Total Liabilities and Stockholders’ Equity Total Long-term
Investments Total Long-term Liabilities Total Property, Plant and Equipment Total
Stockholders' Equity $
Add Less :
Current Assets Current Liabilities Intangible Assets Liabilities Long-term
Investments Long-term Liabilities Property, Plant and Equipment Stockholders’
Equity Total Assets Total Current Assets Total Current Liabilities Total Intangible
Assets Total Liabilities Total Liabilities and Stockholders’ Equity Total Long-term
Investments Total Long-term Liabilities Total Property, Plant and Equipment Total
Stockholders' Equity $
Liabilities and Stockholders’ Equity
Current AssetsCurrent LiabilitiesIntangible AssetsLiabilitiesLong-term InvestmentsLong-term
LiabilitiesProperty, Plant and EquipmentStockholders’ EquityTotal AssetsTotal Current
AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and
Stockholders’ EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property,
Plant and EquipmentTotal Stockholders' Equity
$
Current Assets Current Liabilities Intangible Assets Liabilities Long-term
Investments Long-term Liabilities Property, Plant and Equipment Stockholders’

7. Equity Total Assets Total Current Assets Total Current Liabilities Total Intangible
Assets Total Liabilities Total Liabilities and Stockholders’ Equity Total Long-term
Investments Total Long-term Liabilities Total Property, Plant and Equipment Total
Stockholders' Equity $
Current AssetsCurrent LiabilitiesIntangible AssetsLiabilitiesLong-term InvestmentsLong-term
LiabilitiesProperty, Plant and EquipmentStockholders’ EquityTotal AssetsTotal Current
AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and
Stockholders’ EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property,
Plant and EquipmentTotal Stockholders' Equity
Current Assets Current Liabilities Intangible Assets Liabilities Long-term
Investments Long-term Liabilities Property, Plant and Equipment Stockholders’
Equity Total Assets Total Current Assets Total Current Liabilities Total Intangible
Assets Total Liabilities Total Liabilities and Stockholders’ Equity Total Long-term
Investments Total Long-term Liabilities Total Property, Plant and Equipment Total
Stockholders' Equity
Current Assets Current Liabilities Intangible Assets Liabilities Long-term
Investments Long-term Liabilities Property, Plant and Equipment Stockholders’
Equity Total Assets Total Current Assets Total Current Liabilities Total Intangible
Assets Total Liabilities Total Liabilities and Stockholders’ Equity Total Long-term
Investments Total Long-term Liabilities Total Property, Plant and Equipment Total
Stockholders' Equity $
Identify which accounts should be closed on December 31.
1.
Rent Revenue Salaries and Wages Payable Notes Payable Insurance Expense Interest Payable
Accounts Receivable Supplies Dividends Utilities Expenses Interest Expense Service Revenue
Rent Expense Depreciation Expense Prepaid RentSalaries and Wages Expense Supplies
Expenses Accounts Payable Unearned Rent Revenue Cash2.
Supplies Rent Expense Prepaid RentInterest Payable Utilities Expenses Insurance Expense
Accounts Receivable Service Revenue Depreciation Expense Rent Revenue Salaries and Wages
Expense Supplies Expenses Notes Payable Interest Expense Dividends Accounts Payable

8. Unearned Rent Revenue Salaries and Wages Payable Cash3.
Supplies Expenses Rent Expense Supplies Depreciation Expense Utilities Expenses Interest
Expense Dividends Notes Payable Salaries and Wages Expense Prepaid RentAccounts Payable
Unearned Rent Revenue Salaries and Wages Payable Service Revenue Interest Payable Cash
Accounts Receivable Insurance Expense Rent Revenue4.
Unearned Rent Revenue Interest Expense Insurance Expense Rent Revenue Service Revenue
Accounts Payable Prepaid RentSalaries and Wages Expense Supplies Expenses Rent Expense
Dividends Interest Payable Salaries and Wages Payable Utilities Expenses Depreciation
Expense Cash Accounts Receivable Supplies Notes Payable5.
Interest Expense Dividends Salaries and Wages Expense Accounts Payable Salaries and Wages
Payable Notes Payable Prepaid RentUtilities Expenses Cash Interest Payable Service Revenue
Supplies Depreciation Expense Insurance Expense Accounts Receivable Supplies Expenses
Unearned Rent Revenue Rent Revenue Rent Expense6.
Rent Expense Supplies Expenses Unearned Rent Revenue Interest Payable Prepaid
RentDepreciation Expense Salaries and Wages Expense Accounts Payable Utilities Expenses
Salaries and Wages Payable Insurance Expense Cash Accounts Receivable Supplies Interest
Expense Dividends Service Revenue Rent Revenue Notes Payable7.
Insurance Expense Cash Interest Expense Supplies Expenses Dividends Notes Payable Interest
Payable Prepaid RentRent Expense Rent Revenue Service Revenue Salaries and Wages Payable
Salaries and Wages Expense Utilities Expenses Accounts Payable Accounts Receivable
Unearned Rent Revenue Supplies Depreciation Expense8.
Cash Accounts Receivable Accounts Payable Unearned Rent Revenue Supplies Rent Expense
Utilities Expenses Prepaid RentDepreciation Expense Insurance Expense Dividends Supplies
Expenses Salaries and Wages Expense Service Revenue Salaries and Wages Payable Interest
Payable Rent Revenue Interest Expense Notes PayableIf the note has been outstanding 10
months, what is the annual interest rate on that note? (Round answer to 1 decimal place, e.g.
7.5%.)
The annual interest rate
%If the company paid $10,440 in salaries and wages in 2017, what was the balance in Salaries
and Wages Payable on December 31, 2016?
Salaries and Wages Payable$
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9. Solution
%=8.4%
If any doubt please commentNo.DateAccount Titles and ExplanationDebitCredit1Dec.
31Accounts Receivable3,842Service Revenue (68180-62393-(5350-3405)3,842(To record
accrued service revenue)2Dec. 31Supplies expenses2,915Supplies2,915(To record supplies
used)3Dec. 31Insurance Expense1,595Prepaid Insurance1,595(To expired insurance)4Dec.
31Depreciation Expense4,930Accumulated Depreciation-Equipment4,930(To record
depreciation on equiment)5Dec. 31Interest Expense602Interest Payable602(To record interest
accrued on the note)6Dec. 31Unearned Service Revenue1,945Service Revenue (5350-
3405)1,945(To record service revenue earned)7Dec. 31Salaries and Wages Expense756Salaries
and Wages Payable (10156-9400)756(To record accrued wages)