Create journal entries and prepare any necessary adjustimg entries.

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 cqual 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