Jan. 1 Jan. 1 Feb. 1 Mar. 1 Jul. 1 The company issued 100,000 shares of $8 par value common stock to LJ Porter in exchange for three things: $250,000 in cash, a building valued at $720,000 and land valued at $200,000. The company prepaid $84,000 in cash for a 24 month insurance policy. The company borrowed $180,000 on a 3-year, 5% installment note payable. The terms of the note require the company to make equal payments of $66,098 each December 31 for 3 years. The company provided engine repair services to a customer and received $350,000 in cash. The company issued 4% 5-year bonds with par value of $500,000. The bonds were issued at 102% (a premium). Interest payments are due twice each year on June 30 and December 31. Dec. 31 The company paid the first interest payment on the bonds issued on July 1. The company paid $66,098 for its annual installment on the installment note Dec. 31 from above. The company must calculate and record both the principal portion and the interest portion for this payment. Dec. 31 The company declared a $50,000 dividend that is to be paid in cash on February 10 of the next year. The date of record is January 20. Note: The company records dividends in a dividend account which is closed at the end of the year with all other temporary accounts. Adjustments needed: The company must record a full year of depreciation on the building. The Dec. 31 building has an estimated useful life of 30 years and no salvage value. The company depreciates buildings on a straight-line basis.