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. Round your final answers to the nearest whole dollar.)

Required Information [The following information opplies to the questions disployed below.] On December 1, Year 1, John and Patty Driver formed o corporstion called Susquehonno Equipment Rentals. The new corporation wos oble to begin operations immedistely by purchssing the ossets and taking over the location of Rent-It, an equipment rental compony that wos going out of business. The newly formed compony uses the following occounts. The corporation performs adjusting entries monthly. Closing entries are performed annuslly on December 31. During December of its first year of operations, the corporation entered into the following tronsactions. Dec. 1 Issucd to John and Patty Driver 21, eee shares of capital stock in exchange for a total of \$21e, ege cash. Dec. 1 Purchased for \$192, eae all of the equipment formerly owned by Rent-1t. Paid $131, eee cash and issucd a 1 -year Dec. 1 Paid $9,300 to shapiro Realty as three months' advance rent on the rental yard and office formerly oceupicd by Rent-It. Dec. 4 Purchased office supplies on account fron Modern office Co., \$1,3ee. Paynent due in 38 days. (These supplies are expected to last for several nonths; debit the office supplies asset account.) Dec. 8 Received $8,408 cash as advance payment on equipment rental from McNamer Construction Company. (Credit Unearned Rental Fecs.) Dec.12 Paid salaries of $5,100 for the first two weeks in Decerber. Dec.15 Excluding the McNamer advance, equipnent rental fecs carned during the first 15 days of December amounted to $18,700, of which $12,100 was received in cash. Dec.17 Purchased on account from Earth Movers, Inc., $990 in parts necded to perform basic maintenance on a rental tractor. Paynent is due in 18 days. Dec. 23 Collected $2,2 e of the accounts receivable recorded on December 15 . Dec.26 Rented a backhoe to Mission Landscaping at a price of $390 per day, to be paid when the backhoe is returned. Mission Landscaping expects to kecp the backhoe for about two or three wceks. Dec. 26 Paid biwckly salaries, \$5, 108 . Dec.27 Paid the account payabie to Earth Mavers, Inc., $990. Dec.28 Declared a dividend of 19 cents per share, payable on January 15, Year 2. Dec.29 Susquchanna Equipment Rentals was naned, along with Mission Landscaping and collier Construction, as a codefendant in a \$28, eae lawsuit filed on behalf of Kevin Davenport. Mission Landscaping had left the rented backhoe in a fenced construction site owned by collier construction. After working hours on Decerber 26 , Davenport had climbed the fence to play on parked construction equipnent. While playing on the backhoe, he fell and broke his arn. The extent of the compony's legal and financial responsibility for this accident, if any, cannot be determined at this tine. (Mote: This event does not nequire a journal entry at this tine, but may require disclosure in notes accompanying the statements.) Dec.29 Purchased a 12-month public liability insurance policy for \$9,120. This policy protects the conpany against liability for injuries and property danage caused by its equipnent. However, the policy goes into effect on January 1, Year 2, and affords no coverage for the injuries sustained by Kevin Davenport on Decenber 26. Dec.31 Received a bill fron Universal Utilities for the nonth of Decenber, \$6ge. Paynent is due in 39 days. Dec.31 Equipment rental fees earned during the second half of Decerber amounted to $20,580, of which $16, eee was received in cash. Data for Adjusting Entrles In Year 1 a. The odvonce poyment of rent on December 1 covered s period of three months. b. The onnusl interest rate on the note poysble to Rent-lt is 6 percent. c. The rental equipment is being deprecioted by the stroight-line method over a period of eight years. Any solvoge value at the end of its useful life is expected to be negligible and immaterial. d. Office supplies on hand at December 31 are estimated at $610. e. During December, the company esrned $4,400 of the rental fees poid in odvance by McNamer Construction Company on December 8. f. As of December 31, six doys' rent on the bockhoe rented to Mission Londscoping on December 26 hos been earned. g. Solsries earned by employees since the last poyroll date (December 26 ) omounted to $1,800 st month-end. h. It is estimated that the compony is subject to o combined federal and state income tox rate of 40 percent of income before income toxes (total revenue minus all expenses other thon income toxes). These toxes will be poyoble in Year 2. \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{11}{|c|}{ (8) Answer is not complete. } \\ \hline \multicolumn{11}{|c|}{ SU SQUEHANNA EQUIPMENT RENTALS } \\ \hline \multicolumn{11}{|c|}{ Worksheat } \\ \hline \multirow{2}{*}{\multicolumn{11}{|c|}{\begin{tabular}{c} December 31, Year 1 \\ Adlugtments \end{tabular}}} \\ \hline & & & & & & & & & & \\ \hline & Deblt & Credilt & Deblit & Credilt & Deblt & Credit & Deblit & Credit & Deblt & Creditt \\ \hline \multicolumn{11}{|l|}{ Balance sheet accounte: } \\ \hline Cast & \begin{tabular}{|l|l|} 5 & 8B,200 \\ \end{tabular} & & & & 588.2800 & & & & $88,2800 & \\ \hline Accounts reckivable & 8.9000 & & 1,8000 & & 10,7000 & & & & 10,7000 & \\ \hline \begin{tabular}{l} Prepaid rent \\ \end{tabular} & 9,3000 & & & s 3,1000 & 6.2000 & & & & 6.2000 & \\ \hline Unexpired irsurance & 9,1200 & & & & 9,1200 & & & & 9,1200 & \\ \hline Office supplies & 1,3000 & & & 6900 & 6100 & & & & 6100 & \\ \hline Rental equipment & 192,0000 & & & & 192,0000 & & & & 192,000O & \\ \hline Notes payable & & & & & & \$ 61,0000 & & & & s 61,0000 \\ \hline Acoounts payable & & 1,9000 & & & & 1,9900 & & & & 1,9000 \\ \hline Uneamed rental fees & & 8,400 & 4,4000 & & & 4,0000 & & & & 4,0000 \\ \hline Dividents payable & & 2,1000 & & & & 2,1000 & & & & 2,1000 \\ \hline Capital stock & & 210,0000 & & & & 210,0000 & & & & 210,0000 \\ \hline \multicolumn{11}{|l|}{ Retained earrings } \\ \hline Dividends & 2,100 & & & & 2,100 & & & & & \\ \hline Imterest payable & & & & 3050 & & 3050 & & & & \\ \hline Accurnulated depreciatian: rentalal equiprnent & & & & 2,0000 & & 2,0000 & & & & \\ \hline Salaries payzble & & & & 1,6000 & & 1,6000 & & & & \\ \hline Income taxes payable & & & & 10,3300 & & 10,3300 & & & & \\ \hline \multicolumn{11}{|l|}{ Income statement accounts: } \\ \hline Rental fees earred & & 39,200 & & 6,2000 & & 45,4000 & & & & \\ \hline Sslaries expense & 10,2000 & & 1,8000 & & 12,0000 & & & & & \\ \hline Maintenance expense & 8000 & & & & 8000 & & 8000 & & & \\ \hline \multirow[t]{2}{*}{ Utilities expense } & 6000 & & & & 6000 & & 6000 & & & \\ \hline & 5322.660 & 3522,600 & & & & & & & & \\ \hline Rent expense & & & 3,100 & & 3,100 & & & & & \\ \hline \begin{tabular}{l} Imlerest expense \\ \end{tabular} & & & 305 & & 3050 & & & & & \\ \hline Depreciation expense & & & 2,0000 & & 2,0000 & & & & & \\ \hline Office supplies expenses & & & 6900 & & 6900 & & & & & \\ \hline \multirow[t]{2}{*}{ Incorre taxes expenses } & & & 10,3300 & & 10,3300 & & & & & \\ \hline & & & \begin{tabular}{|ll|} 5 & 24,425 \\ \end{tabular} & s. 24,425 & s 330.915 & s 338,915 & 1,460 & 0 & \begin{tabular}{|l|l|l|} 5 & 306,910 \\ \end{tabular} & $3279,080 \\ \hline \multicolumn{11}{|l|}{\begin{tabular}{|l|l|l} Net incorme \\ \end{tabular}} \\ \hline Tokals: & & & & & & & 1,400 & 0 & \begin{tabular}{ll} s300,910 \\ \end{tabular} & \$ 27279,000 \\ \hline \end{tabular}