12/5/2017 WileyPLUS Comprehensive Accounting Cycle Review 11-2 (Part Level Submission) Karen Noonan opened Kingbird Inc. on February 1, 2017. During February, the following transactions were completed: Feb. 1 Issued 4,400 shares of Kingbird common stock for $13,260. Each share has a $1.50 par. 1 Borrowed $8,000 on a 2-year, 6% note payable. 1 Paid $9,200 to purchase used floor and window cleaning equipment from a company going out of business ($4,440 was for the floor equipment and $4,760 for the window equipment). 1 Paid $220 for February Internet and phone services. 3 Purchased cleaning supplies for $1,000 on account. 4 Hired 4 employees. Each will be paid $490 per 5-day work week (Monday- Friday). Employees will begin working Monday, February 9. 5 Obtained insurance coverage for $11,040 per year. Coverage runs from February 1, 2017, through January 31, 2018. Karen paid $2,760 cash for the first quarter of coverage. 5 Discussions with the insurance agent indicated that providing outside window cleaning services would cost too much to insure. Karen sold the window cleaning equipment for $4,030 cash. 16 Billed customers $3,980 for cleaning services performed through February 13, 2017. 17 Received $504 from a customer for 4 weeks of cleaning services to begin February 21, 2017. 18 Paid $310 on amount owed on cleaning supplies. 20 Paid $3 per share to buy 300 shares of Kingbird common stock from a shareholder who disagreed with management goals. The shares will be held as treasury shares. 23 Billed customers $4,390 for cleaning services performed through February 20. 24 Paid cash for employees' wages for 2 weeks (February 9-13 and 16-20). 25 Collected $2,550 cash from customers billed on February 16. 27 Paid $220 for Internet and phone services for March. 28 Declared and paid a cash dividend of $0.25 per share. (a) Your answer is correct. Journalize the February transactions. (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. Record journal entries in the order presented in the problem.) Date Feb. 1 Account Titles and Explanation Cash Debit Credit 13260 Common Stock 6600 Paid-in Capital in Excess of Par Value-Comm 6660 (To record issuance of common stock in excess of par) Feb. 1 Cash Notes Payable 8000 8000 (To record purchase of notes payable) https://edugen.wileyplus.com/edugen/lti/main.uni 1/6 12/5/2017 WileyPLUS Feb. 1 Equipment 9200 Cash 9200 (To record purchase of equipment) Feb. 1 Utilities Expense 220 Cash 220 (To record payment of internet and phone services) Feb. 3 Supplies 1000 Accounts Payable Feb. 4 No Entry 1000 0 No Entry Feb. 5 Prepaid Insurance 0 2760 cash 2760 (To record payment of insurance) Feb. 5 Cash Loss on Disposal of Plant Assets 4030 730 Equipment 4760 (To record sale of equipment) Feb. 16 Accounts Receivable 3980 Service Revenue Feb. 17 Cash 3980 504 Unearned Service Revenue Feb. 18 Accounts Payable 504 310 Cash Feb. 20 Treasury Stock https://edugen.wileyplus.com/edugen/lti/main.uni 310 900 2/6 12/5/2017 WileyPLUS Cash Feb. 23 900 Accounts Receivable 4390 Service Revenue Feb. 24 4390 Salaries and Wages Expense 3920 Cash Feb. 25 3920 Cash 2550 Accounts Receivable Feb. 27 2550 Prepaid Expenses 220 Cash Feb. 28 220 Cash Dividends 1025 Cash SHOW LIST OF ACCOUNTS 1025 SHOW ANSWER LINK TO TEXT Attempts: 3 of 3 used (b) Your answer is correct. Post to the ledger accounts. (Post entries in the order of journal entries presented above.) Cash 2/1 13260 2/1 9200 2/1 8000 2/1 220 2/5 4030 2/5 2760 2/17 504 2/18 310 2/25 2550 2/20 900 https://edugen.wileyplus.com/edugen/lti/main.uni 3/6 12/5/2017 WileyPLUS 2/28 Bal. 2/24 3920 2/27 220 2/28 1025 9789 Accounts Receivable 2/16 3980 2/25 2/23 4390 2550 Supplies 2/3 1000 Prepaid Insurance 2/5 2760 Prepaid Expenses 2/27 220 2/28 Bal. 220 Equipment 2/1 9200 2/5 4760 Accounts Payable 2/18 310 2/3 1000 Notes Payable 2/1 8000 Unearned Service Revenue 2/17 504 Common Stock 2/1 6600 Paid in Capital in Excess of Par 2/1 6660 Cash Dividends 2/28 1025 Treasury Stock https://edugen.wileyplus.com/edugen/lti/main.uni 4/6 12/5/2017 WileyPLUS 2/20 900 Service Revenue 2/16 3980 2/23 4390 Utilities Expense 2/1 220 Salaries and Wages Expense 2/24 3920 Loss on Disposal of Plant Assets 2/5 730 SHOW LIST OF ACCOUNTS SHOW ANSWER LINK TO TEXT Attempts: 3 of 3 used (c) Your answer is correct. Prepare a trial balance at February 28, 2017. Kingbird Inc. Trial Balance 2/28/17 Debit Cash $ Credit 9789 Accounts Receivable 5820 Supplies 1000 Prepaid Insurance 2760 Prepaid Expenses 220 Equipment https://edugen.wileyplus.com/edugen/lti/main.uni $ 4440 5/6 12/5/2017 WileyPLUS Accounts Payable 690 Notes Payable 8000 Unearned Service Revenue 504 Common Stock 6600 Paid-in Capital in Excess of Par Value-Common 6660 Cash Dividends 1025 Treasury Stock 900 Service Revenue 8370 Utilities Expense 220 Salaries and Wages Expense 3920 730 Loss on Disposal of Plant Assets Total https://edugen.wileyplus.com/edugen/lti/main.uni $ 30824 $ 30824 6/6