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Comprehensive Problem 10-1 (Part Level Submission) Marigold Corp.'s balance sheet at December 31, 2018, is presented below. Marigold Corp. Balance Sheet December 31, 2018 Cash

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Comprehensive Problem 10-1 (Part Level Submission) Marigold Corp.'s balance sheet at December 31, 2018, is presented below. Marigold Corp. Balance Sheet December 31, 2018 Cash $31,000 Accounts payable Inventory 31,000 Interest payable Prepaid Insurance 6,600 Bonds payable Equipment 38,100 Common stock Retained earnings $106,700 $13,550 2,750 55,000 16,800 18,600 $106,700 During 2019, the following transactions occurred. 1. Marigold paid $2,750 Interest on the bonds on January 1, 2019. 2. Marigold purchased $244,200 of inventory on account. 3. Marigold sold for $481,000 cash inventory which cost $260,000. Marigold also collected $33,670 sales taxes. 4. Marigold paid $235,000 on accounts payable. 5. Marigold paid $2,750 interest on the bonds on July 1, 2019. 6. The prepaid insurance ($6,600) expired on July 31. 7. On August 1, Marigold paid $12,000 for insurance coverage from August 1, 2019, through July 31, 2020, 8. Marigold paid $24,700 sales taxes to the state. 9. Paid other operating expenses, $91,000. 10. Retired the bonds on December 31, 2019, by paying $52,000 plus $2,750 interest 11. Issued $94,000 of 8% bonds on December 31, 2019, 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, 2018, 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 journal entries for the transactions listed above. (Credit account titles are automatically indented when amount is entered. Do not indent Credit (To record sales revenue.) (To record cost of goods sold.) Prepare journal entries for the adjusting entries. (Credit account titles are automatically i No. Account Titles and Explanation Debit Credit Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS

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