1) Issued 100,000 shares of $1-par common stock to investors at $20 per share.

Purchased a building for $550,000. The building has a 25-year expected useful life and a $50,000 expected salvage value. McCadden uses the straight-line method of depreciation.

Leased equipment under a five-year lease. The five lease payments of $30,000 each are to be made on December 31 of each year. The cash price of the equipment is $113,724. This lease is accounted for as a capital lease with an implicit interest rate of l0%. The equipment has a five-year useful life and zero expected salvage value; McCadden uses straight-line depreciation with all of its equipment.

2)Borrowed $1.5 million from Burtone Bank. The loan bears an 11% annual interest rate. Interest is to be paid each year on February 1. The principal on the loan will be repaid in four years.

3)Purchased 40,000 shares of Larry Company for $35 per share. McCadden classifies this as an investment in trading securities. These securities are reported as a current asset.

4)Purchased 50,000 shares of Frances Ann Company for $21 per share. McCadden classifies this as an investment in available-for-sale securities. These securities arc reported as a long-term asset.

5)Declared a cash dividend of $0.25 per share, payable on January 15, 2021.

6)

Made the lease payment. The Larry Company shares had a market value of $30 per share. The Frances Ann Company shares had a market value of $27 per share.

Question: Prepare all journal entries to record the information. Also prepare any necessary adjusting entries.

The Date is following

1) Jan 1

2) Feb 1

3) March 1

4) Jul 15

5) Nov 17

6) Dec 31