The following selected transactions were completed during the year by Rotan Corp., a furniture retailer.

Issued $20,000$ shares of its own common stock, par $$1,$ for $$12$ cash per share. Hint: Credit Paid$-$In Capital

in Excess of Par$-$Common Stock for any excess above par.

Borrowed $$100,000$ cash on a $9\%,$ one$-$year note, interest payable at maturity on April $30$ of next year.

Purchased equipment for use in operating the business at a net cash cost of $$164,000$; paid in full.

Purchased merchandise for resale at a cost of $$140,000$ cash. Assume a perpetual inventory system. $($Hint:

Debit Inventory.$)$

Purchased merchandise for resale on credit terms $\frac{2}{10},\frac{n}{60}.$ The merchandise will cost $$9,800$ if paid with$-$

in $10$ days; after $10$ days, the payment will be $$10,000.$ The company always takes the discount; therefore,

such purchases are recorded net of discount.

Sold merchandise for $$180,000,$ with a cost of $$100,000$; collected $$165,000$ cash, and the $$15,000$ balance is

due in one month. Hint: Make entries for both sides of the transaction$-$for sales and for cost of goods sold.

Paid $$40,000$ cash for operating expenses.

Paid $75\%$ of the balance for the merchandise purchased in part $5$ within $10$ days; the remaining $25\%$ bal$-$

ance was unpaid at year$-$end.

Collected $50\%$ of the balance due on the sale in part $6$ ; the remaining $50\%$ balance is uncollected at

year$-$end.

Paid $$600$ cash for an insurance premium; the premium was for two years of coverage. $($Hint: Debit Prepaid

Insurance.$)$

Purchased for $$63,000$ cash a tract of land for company operations.

Paid $$10,000$ cash for damages to a customer who was injured on the company premises.

Make Journal Entries for each.