No.	Account Titles and Explanation	Debit	Credit
1.
2.
3.
	(To record sales revenue.)
	(To record cost of goods sold.)
4.
5.
6.
7.
8.
9.
10.
	(To record payment of bond interest)
	(To record redemption of bonds)
11.

Prepare journal entries for the adjusting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.	Account Titles and Explanation	Debit	Credit
1.
2.
3.

Comprehensive Problem 10-01 a-b, c1-c3 (Part Level Submission) Kingbird, Inc.'s balance sheet at December 31, 2019, is presented below. Cash Inventory Prepaid insurance Equipment Kingbird, Inc. Balance Sheet December 31, 2019 $30,000 Accounts payable 31,000 Interest payable 6,840 Bonds payable 38,700 Common stock Retained earnings $106,540 $14,000 2,725 54,500 16,915 18,400 $106,540 1. During 2020, the following transactions occurred. Kingbird paid 52,725 interest on the bonds on January 1, 2020. 2. Kingbird purchased $240,300 of inventory on account. Kingbird sold for $483,500 cash inventory which cost $267,000. Kingbird also collected $33,845 sales taxes. Kingbird paid $230,000 on accounts payable. Kingbird paid $2,725 interest on the bonds on July 1, 2020. The prepaid insurance ($6,840) expired on July 31. On August 1, Kingbird paid $12,000 for insurance coverage from August 1, 2020, through July 31, 2021. Kingbird paid $23,700 sales taxes to the state. 9. Paid other operating expenses, $90,800. Retired the bonds on December 31, 2020, by paying $51,500 plus $2,725 interest. Issued 594,000 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.) 3. 4. 5. 6. 7. 8. 10. 11. (a) Prepare journal entries for the transactions listed above. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit