Listed below are selected events transactions relating to Kingbird, Inc. for the current year ending December 31.Kingbird manufactures laptop computers for sale in its own stores and for sale by other retailers.On December 1, Kingbird accepted an order from a new customer, Coronado Computers. Coronado has a questionable credithistory, so Kingbird requires a $12,000 deposit from Coronado in order to begin production on its order.1.During December, cash sales at Kingbird's retail locations totaled $5,029,000, which includes the 7% sales tax Kingbird mustremit to the state by the fifteenth day of the following month.2.During the year, Kingbird was sued by a competitor for a patent violation. The competitor is claiming that Kingbird's liability is$3,000,000. Kingbird's attorneys have advised it that it is probable that the court will find for the company's competitor. Theattorneys estimate that the liability under the suit could be as little as $120,000 or as much as $600,000. The attorneys donot believe any amount within this range is a better estimate of Kingbird's liability than any other amount within the range.3.Kingbird provides one-year warranties on the laptops it sells. During the year, Kingbird's laptop sales totaled $120,000,000.Historically, Kingbird's warranty liability has been one percent of total sales. Kingbird began the year with a warranty liabilitybalance of $960,000. Warranty expenditures during the year were $930,000 for computers sold in prior years and $288,000for computers sold during the year. These expenditures were recorded as credits to cash and debits to the warranty liabilityaccount. Any remaining warranty liability is expected to relate to computers sold during the current year.4.Prepare all the journal entries necessary to record the transactions noted above as they occurred and any adjusting journal entriesrelative to the transactions that would be required to present fair financial statements at December 31. For simplicity, assume thatadjusting entries are recorded only once a year on December 31. (If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) No.DateAccount Titles and ExplanationDebitCredit1.2.4.>>>3.

A journal entry is a record of a company financial activities kept ina accounting records. The…

anufactures laptop computers for sale in its own stores and for sale December 1, Kingbird accepted an order from a new customer, Cord tory, so Kingbird requires a $12,000 deposit from Coronado in order ring December, cash sales at Kingbird's retail locations totaled $5,02 nit to the state by the fifteenth day of the following month. ring the year, Kingbird was sued by a competitor for a patent violatic 000,000. Kingbird's attorneys have advised it that it is probable that

anufactures laptop computers for sale in its own stores and for sale December 1, Kingbird accepted an order from a new customer, Cord tory, so Kingbird requires a $12,000 deposit from Coronado in order ring December, cash sales at Kingbird's retail locations totaled $5,02 nit to the state by the fifteenth day of the following month. ring the year, Kingbird was sued by a competitor for a patent violatic 000,000. Kingbird's attorneys have advised it that it is probable that

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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