Pro-Medic Ltd. (PML) is a medical equipment supply company that sells, installs, and services a variety of mobility aid equipment. PML was founded in 2021 and has seen significant growth since then. PML’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 PML purchased a new delivery truck for $90,000, paying $50,000 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. PML’s management has determined that the truck will have a useful life of six years and a residual value of $18,000. 

1 PML paid $5,100 for an insurance policy on the new truck for the period August 1, 2024, to December 31, 2025. 

6 PML sold $36,000 of medical equipment, of which 50% was on account and the balance was cash. The cost to PML of the products sold was $12,500.
13 The company purchased inventory on credit at a cost of $16,000.
20 Golden Years Retirement Group (Golden), one of PML’s largest customers, signed an equipment installation and service contr act with PML. The contract runs from September 1, 2024, to August 30, 2025, and will mean that PML services all of Golden’s medical equipment. In accordance with the contract terms, Golden paid PML $10,000, representing four months’ service revenue under the contract.
30 PML paid dividends in the amount of $25,000, which had been declared by the board (and recorded) in July 2024.

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

Required
Prepare the journal entries and adjusting entries for the above transactions. Round amounts to the nearest dollar.