Chapati Company started business on January $1,2020.$ Some of the events that occurred in its first year of operations follow:Transactions$1.$ An insurance policy was purchased on February $28$ for $$2,460.$ The insurance policy was for one year of coverage that began on March $1,2020\mathrm{.}2.$ During the year, inventory costing $$135,000$ was purchased, all on account$\mathrm{.}3.$ Sales to customers totalled $$208,000.$ Of these, $$42,000$ were cash sales$\mathrm{.}4.$ Payments to suppliers for inventory that had been purchased earlier totalled $$110,000.$ Collections from customers on account during the year totalled $$130,000.$ Customers paid $$23,000$ in advance payments for goods that will be delivered later. Equipment that cost $$137,000$ was purchased on October $1$ for $$39,000$ cash plus a two$-$year, $10\%$ note with a principal amount of $$98,000.($Use Notes Payable$)5.6.$ Wages totalling $$50,000$ were paid to employees during the year$\mathrm{.}7.$ The board of directors declared dividends of $$15,000$ in December $2020,$ to be paid in January $2021.$Adjusting items$1.$ Recorded the insurance expense for the year$\mathrm{.}2.$ The equipment that was purchased $($in item $7)$ on October $1,2020,$ is to be depreciated using the straight$-$line method, with an estimated useful life of $10$ years and an estimated residual value of $$20,000\mathrm{.}3.$ Recorded the interest expense on the note payable for the year$\mathrm{.}4.$ A physical count at year end revealed $$17,000$ of unsold inventory still on hand$\mathrm{.}5.$ 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.In addition to the wages that were paid during the year, wages of $$3,800$ remained unpaid at the end of the year$\mathrm{.}6.$ Prepare journal entries for each of the above transactions and adjusting items. $($Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts. Do not round intermediate calculations.$)$No$.$ Account Titles and ExplanationDebitCredit$24\mathrm{.}56789101112131415$