Comprehensive Problem 10-01 a-b, c1-c3 (Part Level Submission)

Kingbird, Inc.s balance sheet at December 31, 2019, is presented below.

Kingbird, Inc. Balance Sheet December 31, 2019
Cash		$30,000		Accounts payable		$14,000
Inventory		31,000		Interest payable		2,725
Prepaid insurance		6,840		Bonds payable		54,500
Equipment		38,700		Common stock		16,915
				Retained earnings		18,400
		$106,540				$106,540

During 2020, the following transactions occurred.

1.		Kingbird paid $2,725 interest on the bonds on January 1, 2020.
2.		Kingbird purchased $240,300 of inventory on account.
3.		Kingbird sold for $483,500 cash inventory which cost $267,000. Kingbird also collected $33,845 sales taxes.
4.		Kingbird paid $230,000 on accounts payable.
5.		Kingbird paid $2,725 interest on the bonds on July 1, 2020.
6.		The prepaid insurance ($6,840) expired on July 31.
7.		On August 1, Kingbird paid $12,000 for insurance coverage from August 1, 2020, through July 31, 2021.
8.		Kingbird paid $23,700 sales taxes to the state.
9.		Paid other operating expenses, $90,800.
10.		Retired the bonds on December 31, 2020, by paying $51,500 plus $2,725 interest.
11.		Issued $94,000 of 8% bonds on December 31, 2020, at 104. The bonds pay interest every December 31.

Adjustment data:

1.		Recorded the insurance expired from item 7.
2.		The equipment was acquired on December 31, 2019, and will be depreciated on a straight-line basis over 5 years with a $2,760 salvage value.
3.		The income tax rate is 30%. (Hint: Prepare the income statement up to income before taxes and multiply by 30% to compute the amount.)

(c1) Prepare an income statement for the year ending December 31, 2020. Kingbird, Inc. Income Statement $