Issued to Michael and Mary O$$Malley $7,000$ shares of capital stock in exchange for a total of $$200,000$ cash.

Dec. $1$ Purchased for $$240,000$ the equipment formally owned by a competitor named Newport, LLP$.$ Paid $$140,000$ cash and issued a one year note payable for $$100,000.$ The note, plus all $12$ months of accrued interest, are due November $30,2023.$

Dec. $1$ Paid $$12,000$ to Coyne Realty, LLP as three months$$ advance rent on the rental yard and office formerly occupied by Newport, LLP$.$

Dec. $4$ Purchased office supplies on account from the Castlebar Office Company for $$1,000.$ Payment due in $30$ days. $($These supplies are expected to last for several months.$)$

Dec. $8$ Received $$8,000$ cash as advance payment on equipment rental from McGinty Construction Company.

Dec. $12$ Paid salaries for the first two weeks in December of $$5,200.$

Dec. $15$ Excluding the McGinty advance, equipment rental fees earned during the first $15$ days of December amounted to $$18,000,$ of which $$12,000$ was received in cash.

Dec. $17$ Purchased on account from Donegal, LLP$,$ $$600$ in parts needed to repair a rental tractor. Payment is due in $10$ days.

Dec. $23$ Collected $$2,000$ of the accounts receivable recorded on December $15.$

Dec. $26$ Rented a backhoe to Dever Landscaping at a price of $$250$ per day, to be paid when the backhoe is returned. Dever Landscaping expects to keep the backhoe for about two or three weeks.

Dec. $26$ Paid biweekly salaries of $$5,200.$

Dec. $27$ Paid the account payable to Donegal, LLP$,$ $$600.$

Dec. $28$ Declared a dividend of $77$ cents per share, payable on January $15,2023.$

Dec. $29$ Westport, LLC was named, along with Dever Landscaping and Newport Construction as a co$-$defendant in a $$25,000$ lawsuit filed. Dever Landscaping had left the rented backhoe in a fenced construction site owned by Newport Construction. After working hours on December $26,$ kids had climbed the fence to play on parked construction equipment. While playing on the backhoe, one fell and broke his arm. The extent of the company$$s legal and financial responsibility for this accident, if any, cannot be determined at this time.

Dec. $29$ Purchased a $12-$month public liability insurance policy for $$9,600.$ This policy protects the company against liability for injuries and property damage caused by its equipment. However, the policy goes into effect on January $1,2023,$ and affords no coverage for the injuries sustained by the kids on December $26.$

Dec. $31$ Received a bill from Corraun Utilities for the month of December for $$700.$ Payment is due in $30$ days.

Dec. $31$ Equipment rental fees earned during the second half of December amounted to $$20,000,$ of which $$15,600$ was recieved in cash. Prepare required footnote disclosures to accompany the December $31$ financial statements. Your solution should include a separate footnote addressing each of the following areas: $(1)$ depreciation policy, $(2)$ maturity dates of major liabilities, and $(3)$ potential liability due to pending litigation.