Richards Pharmacies Inc. was organized on January 1, 2021. It is authorized to issue 30,000 shares of $1 par value common stock. As of November 30, 2021, 20,000 shares were outstanding. The following are selected transactions of Richards Pharmacies Inc. for the current fiscal year ending December 31, 2021. 1.On December 1, Richards issued an additional 5,000 shares at a market price of $2.50 per share.

2.On December 1, Richards Pharmacies purchased and placed into service a large delivery truck for $86,384(including sales taxes)by issuing a 3-year, $100,000, zero-interest-bearing note to Scott Croft Toyota. The truck has a 5-year useful life. Richards uses the straight-line method for depreciation and the effective-interest method for amortization.

3.During December, cash sales totaled $588,500, which includes the 7% sales tax that must be remitted to the state.

4.On December 20, one customer paid $214, which includes the 7% sales tax that must be remitted to the state, for a prescription that was to be delivered on January 3, 2022.

5.Richards monthly payroll for December of $25,000 included $1,912 withheld for FICA taxes, $3,750 withheld for federal income taxes, and $960 withheld for state income taxes.

6.Richards 5 employees earned 2 weeks of vacation pay during 2021. The average monthly salary per employee is $5,000.

7.During 2021, a 12-year-old female patient was given 100mg pills of a well-known drug for treating depression; however, the prescription was only for 10mg pills. In December 2021, the patients parents filed a suit against Richards Pharmacies Inc. for wrongful dosage. Although the patient did not have any clear permanent injuries, the lawsuit claimed $1 million for pain and suffering. Attorneys have determined that it is probably that Bentons will lose the case and that a reasonable estimate of the damages range $250,000 -$400,000.

8.On December 10, Richards purchased $45,000 (including sales tax) of drugs inventory from a vendor on account.

9.On December 15, Richards issued a $20,000, one-year note at face value to the bank. The note requires payment of principal and interest at 10% on the maturity date.

10.On December 19, Richards purchased 2.000 shares of treasury stock at $3 per share. Richards uses the cost method to account for treasury stock.

11.On December 21, Richards Board of Directors declared a $0.15 cash dividend per share to stockholders of record on December 30, 2021. The dividend is to be paid on January 15, 2022.Required:Prepare all journal entries necessary to record the transactions noted above as they occurred and any adjusting entries relative to the transactions that would be required to present fair financial statements at December 31, 2021. Date each entry. For simplicity, assume that adjusting entries are recorded only once a year on December 31.

In excel, please or typed.