Prepare the necessary adjusting entries for December.

Post the December adjusting entries to the appropriate ledger accounts.

Complete the 10-column worksheet for the year ended December 31.

Dec. 1 Issued to Michael and Bridgette OMalley 20,000 shares of capital stock in exchange for a total of $200,000 cash.

Dec. 1 Purchased for $240,000 all of the equipment formally owned by a competitor named Achill, 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, 2016.

Dec. 1 Paid $12,000 to Corrigan Realty as three months advance rent

on the rental yard and office formerly occupied by Achill, 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, $5,200.

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

Dec. 28 Declared a dividend of 10 cents per share, payable on January 15, 2016.

Dec. 29 East Tonregee, LLC was named, along with Dever Landscaping and Westport 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 Westport 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 companys 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, 2016, and affords no coverage for the injuries sustained by the kids on December 26.

Dec. 31 Received a bill from Curran 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 received in cash.