Income Tax Expense Income Summary Insurance Expense. Interest Revenue Interest Receivable Licence Expense Long-Term investments Mortgage Payable No Entry Notes Receivable Supplies Prepaid Licence 2. During the year, inventory costing $142,000 was purchased, all on account. 3. Sales to customers tolalled $209,000. Of these, $42,000 were cash sales, 4. Payments to suppliers for inventory that had been purchased earlier totalled $115,000. 5. Collections from customers on account during the year totalled $149,000. 6. Customers paid $23,500 in advance payments for goods that will be delivered later. 7. Equipment that cost $135,000 was purchased on October 1 for $38,000 cash plus a two year, 10% note with a principal amount of $97,000. (Use Notes Payable) 8. Wages totalling $48,000 were paid to employees during the year. 9. The board of directors declared dividends of $14,000 in December 2020, to be paid in January 2021. 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 using the 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 theyear. Accounts Receivable: Accumulated Depreciation-Buildings Accumulated Depreciation-Equipment Accumulated Depreciation-Trucks Accumulated Depreciation.Vehicles Advertising Expense Buildings Cash Commonshares Cost of Goods Sold Depreciation Expense Dividends Payable 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.) 2. x. 5 6. 2. 1 in. II. 4. 15. 14. is. Cash Common Shares Cost of Goods Sold Depreciation Expense Dividends Payable Equipment Income Tax Payable Interest Expense Interest Payable Inventory Land Miscellaneous Expense 6. Customers paid $23,500 in advance payments for goods that will be delivered later. 7. Equipment that cost $135,000 was purchased on October 1 for $38,000 cash plus a two-year, 10% note with a principal amount of $97,000. (Use Notes Payable) 8. Wages totalling $48,000 were paid to employees during the year. 9. The board of directors declared dividends of $14,000 in December 2020 , to be paid in January 2021. Adjustingitems 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 using the straight-line method, with an estimated iseful 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 $19,000 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 $3,400 remalned unpaid at the end of the year. 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 $1,620. The insurance policy was for one year of coverage that began on March 1,2020. 2. During the year, inventory costing $142,000 was purchased, all on account. 3. Sales to customers totalled $209,000. Of these. $42,000 were cash sales: 4. Payments to suppliers for imventory that had been purchased earlier totalled $115,000. 5. Collections from customers on account during the year totalled $149,000. 6. Customers paid $23,500 in advance payments for goods that will be delivered later. 7. Equipment that cost $135,000 was purchased on October 1 for $38,000 cash plus a two-year, 10% note with a principa! amount of $97,000. (Use Notes Payable) Prepaid Property Tax Property Tax Expense Repair and Maintenance Expense Sales Revenue Service Revenue Short-Term Investments Telephone Expense Unearned Revenue Utilities Expense Vehicles Rent Expense Rent Revenue Retained Earnings Selling and Administrative Expenses Supplies Expense Wages Payable Wages Expense Advances to Employees BankLoan Payable Deposits Dividend Revenue Dividends Declared