Chapters 1-5 A Saved Help Save & Exit Submit [The following information applies to the questions displayed below.] On December 1, Year 1, John and Patty Driver formed a corporation called Susquehanna Equipment Rentals. The new corporation was able to begin operations immediately by purchasing the assets and taking over the location of Rent-It, an equipment rental company that was going out of business. The newly formed company uses the following accounts. Capital Stock Retained Earnings Dividends Cash Accounts Receivable Prepaid Rent Unexpired Insurance office Supplies Rental Equipment Accumulated Depreciation: Rental Equipment Notes Payable Accounts Payable Interest Payable Salaries Payable Dividends Payable Unearned Rental Fees Income Summary Rental Fees Earned Salaries Expense Maintenance Expense Utilities Expense Rent Expense Office Supplies Expense Depreciation Expense Interest Expense Income Taxes Expense Income Taxes Payable The corporation performs adjusting entries monthly. Closing entries are performed annually December, the corporation entered into the following transactions. on December 31. During Dec. 1 Issued to John and Patty Driver 20,000 shares of capital stock in exchange for a total of $240,000 cash. Dec. 1 Purchased for $288,000 all of the equipment formerly owned by Rent-It. Paid $168,000 cash and issued a 1-year note payable for $120,000. The note, plus all 12 months of accrued interest, are due November 30, Year 2. rental yard and office formerly the Dec. 1 Paid $14,400 to Shapiro Realty as three months' advance rent on occupied by Rent-It. Dec. 4 Purchased office supplies on account from Modern office Co., $1,200. Payment due in 30 days. (These supplies are expected to last for several months; debit the office Supplies asset account.) Dec. 8 Received $9,600 cash as advance payment on equipment rental from McNamer Construction Company. (Credit Unearned Rental Fees.) Dec.12 Paid salaries for the first two weeks in December, $6,240. co of 26 Next> 26 22 23 24 Complete the 10-column worksheet for the year ended December 31. (For accounts where multiple Adjustments are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.) SUSQUEHANNA EQUIPMENT RENTALS Worksheet December 31, Year 1 Trial Balance Adjustments Adjusted Trial Balance Income Debit Credit Debit Credit Debit Credit Debit Balance sheet accounts: Cash Accounts receivable Prepaid rent Unexpired insurance Office supplies Rental equipment Notes payable Accounts payable Unearned rental fees Dividends payable Capital stock Retained eamings Dividends Interest payable Accumulated depreciation: rental equipment Salaries payable Income taxes payable inenme etstamant arennte- of 26 22 23 26 24 Office supplies Rental equipment Notes payable Accounts payable Uneaned rental fees Dividends payable Capital stock Retained eanings Dividends Interest payable Accumulated depreciation: rental equipment Salaries payable Income taxes payable Income statement accounts: Rental fees eamed Salaries expense Maintenance expense Utilities expense S Rent expense Interest expense Depreciation expense Office supplies expense Income taxes expense $ S Net income Trdale Next> 26 of 26 26 22 23 24 Complete the 10-column worksheet for the year ended December 31. (For accounts where multiple Adjustments are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.) SUSQUEHANNA EQUIPMENT RENTALS Worksheet December 31, Year 1 Trial Balance Adjustments Adjusted Trial Balance Income Debit Credit Debit Credit Debit Credit Debit Balance sheet accounts: Cash Accounts receivable Prepaid rent Unexpired insurance Office supplies Rental equipment Notes payable Accounts payable Unearned rental fees Dividends payable Capital stock Retained eamings Dividends Interest payable Accumulated depreciation: rental equipment Salaries payable Income taxes payable inenme etstamant arennte- of 26 22 23 26 24 Office supplies Rental equipment Notes payable Accounts payable Uneaned rental fees Dividends payable Capital stock Retained eanings Dividends Interest payable Accumulated depreciation: rental equipment Salaries payable Income taxes payable Income statement accounts: Rental fees eamed Salaries expense Maintenance expense Utilities expense S Rent expense Interest expense Depreciation expense Office supplies expense Income taxes expense $ S Net income Trdale Next> 26 of 26