Prerepare the journal entry and adjust entries.

Pharoah Company started business on January 1,2024 . Some of the events that occurred in its first year of operations follow: Transactions 1. Equipment that cost $189,200 was purchased on February 1 for $53,600 cash plus a two-year, 4% note with a principal amount of $135,600. 2. During the year, inventory costing $171,520 was purchased, all on account. 3. An insurance policy was purchased on March 31 for $2,892. The insurance policy was for one year of coverage that began on April 1, 2024. 4. Sales to customers totalled $305,520. Of these, $69,680 were cash sales. 5. Payments to suppliers for inventory that had been purchased earlier totalled $85,760. 6. Collections from customers on account during the year totalled $192,960. 7. On January 30 , customers paid $13,560 in advance payments for goods that will be delivered later. 8. Wages totalling $54,240 were paid to employees during the year. 9. The board of directors declared dividends of $9,040 in December 2024, to be paid in January 2025 . Adjusting items 10. A physical count at year end revealed $36,160 of unsold inventory still on hand. 11. It was determined that 30% of the goods that were paid for in advance (in item 7 ) had been delivered to the customers by the end of the year. 12. Recorded the insurance expense for the year. 13. The equipment that was purchased (in item 1) on February 1, 2024, is to be depreciated using the straight-line method, with an estimated useful life of 20 years and an estimated residual value of $50,000. 14. Recorded the interest expense on the note payable for the year. 15. In addition to the wages that were paid during the year, wages of $5,424 remained unpaid at the end of the year. 10. Cost of Goods Sold Inventory 11. Deferred Revenue Sales Revenue 4068 12. Insurance Expense Prepaid Insurance 13. Depreciation Expense Accumulated Depreciation - Equipment 14. Interest Expense Interest Payable \begin{tabular}{|r|} \hline 452 \\ \hline \end{tabular}