12. Kevin decides to expand outside the college. On the first day of the month, KKCDK pays $20 in advance for advertising in the local paper. The advertisements will run during February and March.

13. The student groups paid for the 100 CDs not paid for in January.

14. KKCDK paid off its remaining accounts payable, salaries payable, taxes payable and interest payable.

15. KKCDK purchases 450 CDs for $135 on account.

16. KKCDK sells 500 CDs during the month for $0.80 each. KKCDK receives cash for 450 of them and is owed for the other 50.

17. KKCDK completes and delivers the advanced order of 50 CDs described in number 8 above.

18. KKCDK incurs $80 in tax expenses. The taxes will be paid in March.

19. Mark continues to earn his salary of $50 and will be paid on March 1.

20. An adjustment is made for advertising in number 12 above.

21. KKCDK incurs $10 in interest expense. The interest will be paid with the note.

L. Prepare the financial statements for February.