Journal entries for various transactions. Present journal entries for each of the following transactions of Kirkland Corporation. You may omit dates and explanations for the journal entries.

(1) Issues 10,000 shares of \(\$ 10\)-par value common stock in the acquisition of the assets of Ragsdale Corporation. The common shares given in the exchange have a market value of \(\$ 250,000\) on the New York Stock Exchange. The identifiable assets received and their market values are: inventories, \(\$ 30,000\); land, \(\$ 15,000\); buildings, \(\$ 125,000\); equipment, \(\$ 60,000\).

(2) Orders merchandise costing \(\$ 36,000\), paying \(\$ 5,000\) in advance to the supplier.

(3) Receives the merchandise ordered in (2) and an invoice for the \(\$ 31,000\) due.

(4) Inspects the merchandise and discovers that merchandise costing \(\$ 3,500\) is damaged and returns it to the supplier. The account has not yet been paid.

(5) Pays the amount due to the suppliers in transactions (2), (3), and (4) after subtracting a 2-percent discount for prompt payment. The discount applies to the full amount of purchases \((\$ 36,000\) ) net of returns \((\$ 3,500)\). Kirkland Corporation treats cash discounts taken as a reduction in the acquisition cost of merchandise.

(6) Receives an order from a customer for \(\$ 8,000\) of merchandise to be delivered next month. The customer sends an \(\$ 800\) check with the order as a deposit on the purchase.

(7) Acquires an automobile costing \(\$ 18,000\) by paying \(\$ 2,000\) in cash and signing a note payable for the balance. The note bears interest at 8 percent per year and is due in 12 months.

(8) Pays \(\$ 24,000\) for property and liability insurance for the one-year period beginning next month.