Create journal entries and prepare any necessary adjusting entries.

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 S415,000, $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. 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 S415,000, $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