Chapati Company started business on January $1,2020.$ Some of the events that occurred in its first year of operations follow:

$1.$ An insurance policy was purchased on February $28$ for $$2,460.$ The insurance policy was for one year of coverage that began on March $1,2020.$

$2.$ During the year, inventory costing $$140,000$ was purchased, all on account.

$3.$ Sales to customers totalled $$205,000.$ Of these, $$38,000$ were cash sales.

$4.$ Payments to suppliers for inventory that had been purchased earlier totalled $$108,000.$

$5.$ Collections from customers on account during the year totalled $ $135,000.$

$6.$ Customers paid $$28,000$ in advance payments for goods that will be delivered later.

$7.$

Equipment that cost $$172,000$ was purchased on October $1$ for $$41,000$ cash plus a two$-$year, $10\%$ note with a principal amount of $$131,000.($Use Notes Payable$)$

$8.$ Wages totalling $$45,000$ were paid to employees during the year.

$9.$ The board of directors declared dividends of $$13,000$ in December $2020,$ to be paid in January $2021.$

Transactions

Adjusting items

$10.$ Recorded the insurance expense for the year.

$11.$ The equipment that was purchased $($in item $7)$ on October $1,2020,$ is to be depreciated straight$-$line method, with an estimated useful life of $10$ years and an estimated residual value of $$20,000.$

$12.$ Recorded the interest expense on the note payable for the year.

$13.$ A physical count at year end revealed $$23,000$ of unsold inventory still on hand.

$14.$ It was determined that $80\%$ of the goods that were paid for in advance $($in item $6)$ had been delivered to the customers by the end of the year.

$15.$ In addition to the wages that were paid during the year, wages of $$4,100$ remained unpaid at the end of the year.