Question $2$ of $3$

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Ivanhoe Company started business on January $1,2024.$ Some of the events that occurred in its first year of operations follow:

Transactions

Equipment that cost $$158,000$ was purchased on February $1$ for $$34,100$ cash plus a two$-$year, $4\%$ note with a principal amount of $$123,900.$

During the year, inventory costing $$109,120$ was purchased, all on account.

An insurance policy was purchased on March $31$ for $$1\mathrm{.}836.$ The insurance policy was for one year of coverage that began on April $1,2024.$

Sales to customers totalled $$194,370.$ Of these, $$44,330$ were cash sales.

Payments to suppliers for inventory that had heon purchased earlier totalled $$54,560.$

Collections from customers on account during the year totalled $$122,760.$

On January $30,$ customers paid $$12,390$ in advance payments for goods that will be delivered later.

Wages totalling $$49,560$ were paid to employees during the year.

The board of directors declared dividends of $$8,260$ in December $2024,$ to be pald in January $2025.$

Adjusting items

A physical count at year end revealed $$33,040$ of unsold inventory still on hand.

It was determined that $30\%$ of the goods that were paid for in advance $($in Item $7)$ had been dellvered to the customers by the end of the year.

Recorded the insurance expense for the year.

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.$

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

In addition to the wages that were paid during the year, wages of $$4,956$ remained unpaid at the end of the year.

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