Kingbird Corporations balance sheet at December 31, 2024, is presented below.

Kingbird Corporation Balance Sheet December 31, 2024
Cash		$60,000		Accounts payable		$27,500
Inventory		61,500		Interest payable		5,000
Prepaid insurance		11,200		Bonds payable		100,000
Equipment		76,000		Common stock		50,000
				Retained earnings		$26,200
		$208,700				$208,700

During 2025, the following transactions occurred. Kingbird uses a perpetual inventory system.

1.		Kingbird paid $5,000 interest on the bonds on January 1, 2025.
2.		Kingbird purchased $482,200 of inventory on account.
3.		Kingbird sold for $960,000 cash inventory which cost $528,000. Kingbird also collected $57,600 sales taxes.
4.		Kingbird paid $460,000 on accounts payable.
5.		Kingbird paid $5,000 interest on the bonds on July 1, 2025.
6.		The prepaid insurance ($11,200) expired on July 31.
7.		On August 1, Kingbird paid $20,400 for insurance coverage from August 1, 2025, through July 31, 2026.
8.		Kingbird paid $34,000 sales taxes to the state.
9.		Paid other operating expenses, $182,000.
10.		Redeemed the bonds on December 31, 2025, by paying $96,000 plus $5,000 interest.
11.		Issued $180,000 of 8%, 10-year bonds on December 31, 2025, at 103. The bonds pay interest every June 30 and December 31.

Adjustment data:

1.		Recorded the insurance expired from item 7.
2.		The equipment was acquired on December 31, 2024, and will be depreciated on a straight-line basis over 5 years with a $6,100 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 and adjusting entries