omprehensive Accounting Cycle Review 11-2 (Part Level Submission) aren Noonan opened Kingbird Inc. on February 1, 2017. During February, the following transactions were completed: Feb. 1 Issued 4,000 shares of Kingbird common stock for $9,620. Each share has a $1.50 par 1 Borrowed $6,000 on a 2-year, 6% note payable. 1 Paid $6,670 to purchase used floor and window cleaning equipment from a company going out of business ($3,280 was for the floor equipment and $3,390 for the window equipment) 1 Paid $160 for February Internet and phone services. 3 Purchased cleaning supplies for $730 on account 4 Hired 4 employees. Each will be paid $360 per S-day work week (Monday- Friday). Employees will begin working Monday, February 9 s Obtained insurance coverage for $9,840 per year. Coverage runs from February 1, 2017, through January 31, 2018. Karen paid $2,460 cash for the first quarter of coverage. sossions with the insurance agent indicated that providin outsse wm ow cleaning services would cost too much to ns re ta en sold he windo" deringe aan ent or920 can. 16 Billed customers $2,890 for cleaning services performed through February 13, 2017 17 Received $432 from a customer for 4 weeks of cleaning services to bedin February 21, 2017 18 Paid $220 on amount owed on cleaning supplies 20 Paid $3 per share to buy 300 shares of Kingbird common stock from a shareholder who disagreed with management goals. The shares will be helid as treasury shares. 23 Billed customers $3,180 for cleaning services performed through February 20 24 Paid cash for employees' wages for 2 weeks (February 9-13 and 16-20). 25 Collected $1,850 cash from customers billed on February 16. 27 Paid $160 for Internet and phone services for March. 28 Declared and paid a cash dividend of $0.15 per share. Journalize the February transactions. (Credit account titles are automatically indented when amount is ent the account titles and enter 0 for the amounts. Record journal entries in the order presented in the prol Date Account Titles and Explanation Debit Credit Feb. 1 Cash 9,620 Common Stock 6,000 Paid-in Capital in Excess of Par Value-Common St 3,620 (To record issuance of common stock in excess of par) Feb. 1 Cash 6,000 Notes Payable 6,000 (To record purchase of notes payable Feb. 1 Equipment 6,670 Cash 6,670 (To record purchase of equipment) Feb. 1 Utilities Expense 160 Cash 160 (To record payment of internet and phone services) Feb. 3Supplies 730 Accounts Payable 730 Feb. 4No Entry No Entry 0 Feb. 5 Prepaid Insurance 2,460 Cash 2,460 (To record payment of insurance) Feb. 5 Cash 2,920 Loss on Disposal of Plant Assets 470 Equipment 3,390 (To record sale of equipment) Feb. 16 Accounts Receivable 2,890 Service Revenue 2,890 432 Feb. 17 Cash 432 Unearned Service Revenue Feb. 18TAccounts Payable 220 220 Cash Feb. 20Treasury Stock 900 900 Cash 3,180 Feb. 23 Accounts Receivable 3,180 Service Revenue 2,880 Feb. 24 Salaries and Wages Expense 2,880 Cash 1,850 Feb. 25Cash 1,850 Accounts Receivable 160 Feb. 27 Prepaid Expenses 160 Cash Feb. 28 Cash Dividends Cash Cash 9,620 2/1 6,000 2/1 2,92012/5 432 2/18 1,850 2/20 6,670 160 2,460 2/5 220 2/25 900 2/24 2/27 2/28 2,880 160 2/28 Bal. 6,817 Accounts Receivable 2/16 2,890 2/25 1,850 2/23 3,180 Supplies 2/3 730 Prepaid Insurance 2/5 2,460 Prepaid Expenses 2/27 160 2/28 Bal.+ 160 Equipment 6,670 2/5 3,390 Accounts Payable 220 2/3 Notes Payable 2/18 730 6,000 Unearned Service Revenue 432 Common Stock 6,000 Paid in Capital in Excess of Par 3,620 Cash Dividends 2/28 Treasury Stock 2/20 900 Service Revenue 2/16 2,890 2/23 3,180 Utilities Expense 160 Salaries and Wages Expense 2/24 2,880 Loss on Disposal of Plant Assets 2/5 470 Kingbird Inc. Trial Balance 2/28/17 Debit Credit Cash 6,817 Accounts Receivable 4,220 Supplies Prepaid Insurance Prepaid Expenses Equipment Accounts Payable Notes Payable 730 2,460 160 3,280 510 6,000 Unearned Service Revenue 432 Common Stock 6,000 Paid-in Capital in Excess of Par Value-Common Stock 3,620 Cash Dividends 5 Treasury Stock 900 Service Revenue 6,070 Utilities Expense 160 Treasury Stock 900 Service Revenue 6,070 Utilities Expense Salaries and Wages Expense Loss on Disposal of Plant Assets 160 2,880 470 Total 22,632 22,632 (Credit account titles are automatically indented when amount is entered. Do not Indent manually. If no entry select "No En the account titles and enter O for the amounts. Record journal entries in the order presented in the problem, Round answers to O decimal places, e.g. 1,527.) for customers through February 27, 2017, but unbiled and uncollected were $2810, (2) Received notice that a customer who was billed $130 for services performed February 10 has filed for bankruptcy. Kingbird does not expect to collect any portion of this outstanding (3) Kin bird uses the allowance method to estimate bad debts. Kingbird estimates that 3% of its month end receivables will not be colected. 1 month of depreciation for the floor equipment. Use the straight-line method, an estimated ite of 4 years, and $400 salvage value. (5) (6) (7) (B) (9) (10) Record 1 month of insurance expense An inventory count shows $300 of supplies on hand at February 28. One week of services were performed for the customer who paid in advance on February 17 Accrue for wages owed through February 28, 2017. Accrue for interest expense for 1 month. Karen estimates a 20% income tax rate. (Hint: Prepare an income statement up to-income before taxes. to hel"ith the Inmn No. Account Titles and Explanation Debit Credit 1. Accounts Receivable 2,810 Service Revenue 2,810 2. Allowance for Doubtful Accounts Accounts Receivable 130 3. Bad Debt Expense Allowance for Doubtful Accounts 4. Depreciation Expense Accumulated Depreciation-Equipment 5. Insurance Expense Prepaid Insurance 6. Supplies Expense upplies 7. Unearned Service Revenue Service Revenue 8. Salaries and Wages Expense Salaries and Wages Payable 9. Interest Expense Interest Payable 10. Income Tax Expense Income Taxes Payable