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.)

Prepare an adjusted trial balance at December 31, 2020. Kingbird, Inc. Trial Balance 12/31/2020 Debit Credit Cash $ Inventory Prepaid Insurance Equipment 38,700 Accumulated Depreciation Equipment Accounts Payable Sales Taxes Payable Income Tax Payable Sales Revenue Bonds Payable Premium on Bonds Payable Common Stock Retained Earnings Insurance Expense Cost of Goods Sold Interest Expense Other Operating Expenses Depreciation Expense Income Tax Expense Gain on Bond Redemption Totals