Kingbird Corporation's balance sheet at December 31, 2024, is presented below. During 2025 , the following transactions occurred. Kingbird uses a perpetual inventory system. 1. Kingbird paid $2,000 interest on the bonds on January 1,2025. 2. Kingbird purchased $192,880 of inventory on account. 3. Kingbird sold for $384,000 cash inventory which cost $211,200. Kingbird also collected $23,040 sales taxes. 4. Kingbird paid $184,000 on accounts payable. 5. Kingbird paid $2,000 interest on the bonds on July 1,2025. 6. The prepaid insurance ($4,480) expired on July 31 . 7. On August 1, Kingbird paid $8,160 for insurance coverage from August 1, 2025, through July 31,2026. 8. Kingbird paid $13,600 sales taxes to the state. 9. Paid other operating expenses, $72,800. 10. Redeemed the bonds on December 31,2025 , by paying $38,400 plus $2,000 interest. 11. Issued $72,000 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 $2,400 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 joumal entries for the transactions listed above and adjusting entries. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the acc0 11. Adj. 1. Adj. 2. Adj. 3. Kingbird Corporation's balance sheet at December 31, 2024, is presented below. During 2025 , the following transactions occurred. Kingbird uses a perpetual inventory system. 1. Kingbird paid $2,000 interest on the bonds on January 1,2025. 2. Kingbird purchased $192,880 of inventory on account. 3. Kingbird sold for $384,000 cash inventory which cost $211,200. Kingbird also collected $23,040 sales taxes. 4. Kingbird paid $184,000 on accounts payable. 5. Kingbird paid $2,000 interest on the bonds on July 1,2025. 6. The prepaid insurance ($4,480) expired on July 31 . 7. On August 1, Kingbird paid $8,160 for insurance coverage from August 1, 2025, through July 31,2026. 8. Kingbird paid $13,600 sales taxes to the state. 9. Paid other operating expenses, $72,800. 10. Redeemed the bonds on December 31,2025 , by paying $38,400 plus $2,000 interest. 11. Issued $72,000 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 $2,400 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 joumal entries for the transactions listed above and adjusting entries. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the acc0 11. Adj. 1. Adj. 2. Adj. 3
