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Kingbird Corporation's balance sheet at December 3 1 , 2 0 2 4 , is presented below. Debits: Cash $ 9 3 , 0 0
Kingbird Corporation's balance sheet at December is presented below.
Debits:
Cash $
Inventory
Prepaid insurance
Equipment
Total $
Credits:
Accounts payable $
Interest payable
Bonds payable
Common stock
Retained earnings $
Total $
During the following transactions occurred. Kingbird uses a perpetual inventory system.
Kingbird paid $ interest on the bonds on January
Kingbird purchased $ of inventory on account.
Kingbird sold for $ cash inventory which cost $ Kingbird also collected $ sales taxes.
Kingbird $ on accounts payable.
Kingbird paid $ interest on the bonds on July
The prepaid insurance $ espired on July
On August Kingbird paid $ for insurance coverage from August though July
Kingbird paid $ sales taxes to the state.
Paid other operating expenses, $
Redeemed the bonds on December by paying $ plus $ interest.
Issued $ of year bonds on december at The bonds pay interest every June and December
Adjustment data:
Recorded the insurance expired from item
The equipment was acquired on December and will be depreciated on a straightline basis over years with a $ salvage value.
The income tax rate is Hint: prepare the income statement up income before taxes and multiply by to compute the amount.
Prepare journal entries for the transactions listed above and adjusting entries.
List of accounts for you to use for the account titles.
Accounts Payable
Accounts Receivable
Accrued Pension Liability
Accumulated DepreciationEquipment
Bonds Payable
Buildings
Cash
Common Stock
Cost of Goods Sold
Current Portion of LongTerm Debt
Depreciation Expense
Discount on Bonds Payable
Dividends
Equipment
Federal Income Taxes Payable
Federal Unemployment Taxes Payable
FICA Taxes Payable
Gain on Bond Redemption
Income Tax Expense
Income Taxes Payable
Insurance Expense
Interest Expense
Interest Payable
Inventory
Land
Loss on Bond Redemption
Mortgage Payable
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