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Write the journal entries, including adjusting entires for the following transactions.

Igarashi recalled what a busy year it was. The following are the transactions that happened during the year. 1. On Jan. 1, Igarashi met with his lawyer to start the business. He and Chung invested $90,000 (in total) in the company in exchange for shares of common stock. 2. On Jan. 1, The Rider Club borrowed $50,000 from the Islands National Bank. The loan was to be repaid in equal principal payments over four years. The interest rate was 10% per year and interest was payable at the end of each year when the principal payment was paid. 3. On February 1, as officer of the Rider Club, Igarashi visited a local used equipment dealer and purchased a surfboard shaping machine for $10,000 cash. The surfboard shaping machine looks to be in pretty decent condition, and Igarashi expects that they could use it for another five years. At the end of five years, Igarashi believes the machine will be worth $1,000. The Rider Club was so busy that year that neither Igarashi nor Chung could remember all the activities they engaged in during the year. Fortunately, they kept all receipts and made good notes. Looking through these notes and receipts, Igarashi made a list of what had transpired that year: 4. Purchases of inventory throughout the year had cost $240,000, $190,000 of which was paid for in cash and the rest purchased on account. 5. Surfboard sales of $415,000, $300,000 of which were cash sales and the rest were sales on account. The inventory sold had originally cost a total of $220,000. 6. Total salaries and wages for the year that were paid in cash amounted to $130,000. 7. Payment of $17,500 was made to Islands National Bank, of which $12,500 was for repayment of loan principal and $5,000 was for payment of interest. 8. Igarashi recalled that corporate employees did work in December (in addition to the work accounted for in no. 6 above) for which payment of $4,000 would be included in their paychecks during the first week of January 9. On December 31, The Rider Club paid $850 in estimated income taxes for the year. Igarashi needs to prepare the financial statements for The Rider Club for the first year. He wants a nice, tidy summary of its performance and the financial statements would offer that summary. And he also wants to prepare everything using Excel because he knows it's a lot faster, especially since it is New Year's Eve and he plans to welcome the New Year with his friends at the Big Island Luau Party. Required: 1. Prepare journal entries for items 1 through 9. Also prepare any necessary adjusting entries

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