Ivanhoe Ltd. (IL) is a medical equipment supply company that sells, installs, and services a variety of mobility aid equipment. IL was founded in 2021 and has seen significant growth since then. IL's bookkeeper retired in July, and her replacement has asked for your assistance in recording the following transactions from the month of August 2024.

Regular entries: Aug.1 IL purchased a new delivery truck for $94,500. paying $52,500 cash and financing the balance using a note payable at 2% per annum. The note payable is due in 12 months, and interest on the note must be paid on the first day of every month, beginning on September 1, 2024. IL's management has determined that the truck will have a useful life of six years and a residual value of $18,900. IL paid $5,780 for an insurance policy on the new truck for the period August 1, 2024, to December 31, 2025.

Aug 6 IL sold $37,800 of medical equipment, of which 50% was on account and the balance was cash. The cost to IL of the products sold was $13,100.

aug 13 The company purchased inventory on credit at a cost of $16,800.

aug 20 Golden Years Retirement Group (Golden), one of IL's largest customers, signed an equipment installation and service contract with IL. The contract runs from September 1, 2024, to August 30, 2025, and will mean that IL services all of Golden's medical equipment. In accor dance with the contract terms, Golden paid IL $10,500, representing four months' service revenue under the contract.

Aug. 31 IL made the necessary month-end adjusting entry related to the insurance policy. IL made the necessary month-end adjusting entry related to the depreciation of the new delivery truck. IL made the necessary month-end adjusting entry related to the interest on the note payable.

I have an issue with the insurance part in the adjusting entries