Comprehensive Problem 10-1 (Part Level Submission) Pina Colada Corp.'s balance sheet at December 31, 2018, is presented below. ve A Pina Colada Corp Balance Sheet December 31, 2018 Cash Inventory Prepaid insurance Equipment $30,500 Accounts payable 30,500 Interest payable 6,600 Bonds payable 39,540 Common stock $12,750 2,450 49,000 24,040 18,900 $107,140 Retained earnings $107,140 During 2019, the following transactions occurred. 1. Pina Colada paid $2,450 interest on the bonds on January 1, 2019 2. Pina Colada purchased $241,600 of inventory on account. 3. Pina Colada sold for $493,000 cash inventory which cost $264,500. Pina Colada also collected $34,510 sales taxes. 4. Pina Colada paid $220,500 on accounts payable. 5. Pina Colada paid $2,450 interest on the bonds on July 1, 2019 6. The prepaid insurance ($6,600) expired on July 31. 7. On August 1, Pina Colada paid $12,000 for insurance coverage from August 1, 2019, through July 31, 2020. 8 Pina Colada paid $25,000 sales taxes to the state. 9. Paid other operating expenses, $91,600. 10 Retired the bonds on December 31, 2019, by paying $46,000 plus $2,450 interest. Issued $89,500 of 8% bonds on December 31, 2019, at 104. The bonds pay interest every December 31. 11, Adjustment data: 1. Recorded the insurance expired from iterm 7 3- The was acquired on December 31, 2018, and will be depreciated on a straight-line basis over 5 years with a $2,940 salvage w by 30% to compute the amount.) income tax rate is 30%. (Hint: Prepare the income statement up to income before taxes and multiply ype here to search ensive A 6. 1 (Par 7. s by 8. 9. 10. (To record payment of bond interest) (To record redemption of bonds) Type here to search