Sam formed a corporation called Sam Inc on December 1, 2010. The new corporation was able to begin operations immediately by purchasing all the assets and taking over the location of Buy-It, an equipment rental company which was going out of business. The corporation performs adjusting entries monthly. Closing entries are performed annually on December 31. During December, the corporation entered the following transactions: Dec. 1 Issued 20,000 shares of capital stock at an issue price of $15 per share. Dec. 2 Paid $158,000 cash and issued a 12 months note payable for the balance to buy equipment of $288,000 in which the note will be paid in full together with interest at the end of 1 year. Dec. 3 Paid quarterly rental of $4,800 per month in one lump sum to Lovely as three months' advance rent on the rental yard and office formerly occupied by Lovely. Dec. 7 Purchased office stationery from ICan Book Store for $1,200 on credit. Dec. 10 Polar Company paid $9600 in advance for equipment rental. Dec. 13 Paid two weeks salaries to employees, $6,240. Dec. 15 Equipment rental fees earned from Polar company during the first 15 days of December amounted to $21,600, of which $14,400 was received in cash. Dec. 18 Purchased on account from Ching Leo Inc., $720 in parts needed to repair a rental tractor. Payment is due in 10 days. Dec. 23 Collected $2,400 of the accounts receivable recorded on December 15. Dec. 26 Rented a backhoe to Mission Possible at a price of $2100 per 7 days week, to be paid when the backhoe is returned. Mission Landscaping expects to keep the backhoe for about two or three weeks. Dec. 26 Paid 2 weeks salaries, $6,240. Dec. 27 Paid the account payable to Ching Leo Inc., $600. Dec. 28 Declared a dividend of 12 cents per share, payable in January 2021. Dec. 29 Received a bill from Universal Utilities for the month of December, $840. Payment is due in 30 days. Dec. 31 Equipment rental fees earned during the second half of December amounted to $24,000, of which $15,600 was received in cash. Additional information at end of 31 December 2020: a. The advance payment of rent on December 1 covered a period of three months. b. The annual interest rate on the note payable to Buy-It is 6 percent. c. The rental equipment is being depreciated by the straight-line method over a period of eight years. d. Office supplies on hand on December 31 are estimated at $720.