Accounting Journal Entries and Adjusting Entries for Offcopy Ltd

QUESTION 1 (23.5 MARKS, 35 MINUTES) Offcopy Ltd. (OL) is an office supply company that also sells and services commercial office copiers. OL was founded in 2016 and has seen significant growth since then. OL's bookkeeper retired in August and her replacement has asked for your assistance in recording the following transactions from the month of September 2020. Regular entries: Sept.1OL purchased a new delivery truck for $80,000, paying $30,000 cash and financing the balance using a note payable at9% 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 October 1, 2020. OL's management has determined that the truck will have a useful life of six years and a residual value of $8,000. 1OL paid $2,400 for an insurance policy on the new truck for the period September 1, 2020, to August 31, 2021. 5The company purchased inventory on credit at a cost of $13,000. 12Pinamalas University, one of OL's largest customers, signed a photocopy service contract with OL. The contract runs from October 1, 2020, to September 30, 2021, and will mean that OL services all of the university's photocopiers. (for a whole year) In accordance with the contact terms, Pinamalas paid OL $7,500, representing the first month's service revenue under the contract. 18OL sold $16,000 of office supplies, of which one-quarter was on account and the balance was cash. The cost to OL of the products sold was $10,500. 30OL paid dividends in the amount of $15,000, which had been declared by the board (and recorded) in August 2020. Adjusting entries: Sept.30OL made the necessary month-end adjusting entry related to the depreciation of the new delivery truck. 30OL made the necessary month-end adjusting entry related to the interest on the note payable. 30OL made the necessary month-end adjusting entry related to the insurance policy. Required Prepare the journal entries and the adjusting entries for the above transactions. Show details of calculation if the amounts are not provided directly in the question.