Reference no: EM132592667

Question - Listed below are selected transactions of Kingbird Department Store for the current year ending December 31.

1. On December 5, the store received $550 from the Selig Players as a deposit to be returned after certain furniture to be used in stage production was returned on January 15.

2. During December, cash sales totaled $810,600, which includes 5% sales tax that must be remitted to the state by the fifteenth day the following month.

3. On December 10, the store purchased for cash three delivery trucks for $121,000. The trucks were purchased in a state that applies a 5% sales tax.

4. The store determined it will cost $102,800 to restore the area ( considered a land improvement) surrounding one of its store parking lots, when the store is closed in 2 years. Kingbird estimates the fair value of the obligation at December 31 is $87,300.

How do prepare the journal entries necessary to record the transactions noted above as the occurred and any adjusting journal entries relative to the transactions that would be required to present fair financial statements at December 31. Date each entry. For simplicity, assume that adjusting entries relative to the transactions only once a year on December 31.