Dec. 1 Issted to John and Patty Driver 27,000 shares of capital stock in exchange for a total of 527 , 00 cosh. Dec. I Purchased for $201,600 alt of the equipnent formerty owned by Rent-1t. Paid 5134,600 cash and issued a 1-year note payable for 967,600 . The note, plus alt 12 months of accrued interest, are doe Noventer 30, Year 2 Dec. 1 Paid $10,500 to Shapiro Reatty as three nonths' advance rent on the rental yard and office formerty occupied by Rent-It. Dec. 4 Purchased office supplies on account froe Modern office Co., $1,200. Payment due in 30 days. IThese supplies are expected to last for several nonths: debit the office supplies asset account. Dec. 8 Received 58,700 cash as advance paysent on equipnent rental fron Mciamer Construction Canpany. (Credit Unearned Rental Fees. Dec. 12 Paid salaries of $4,800 for the first two weeks in Deceeber. Dec. 15 Exclgding the McNaner advance, equipent rental fees earned during the first 15 days of Decenber bnounted to $18,600, of which $13, ee was received in cash. Dec.17 Purchased on account fron Earth Movers, Inc., $920 in parts needed to perform basic adintenance on a Dec, 23 Collected 32,100 of the accounts receivable recorded on Decenber 15. bec. 26 Rented a backhoe to Mission Landscaping at a price of $330 per day, to be paid uhen the backhoe is returned. Mission Landscaping expects to keep the backhoe for about two or three weeks. Dec.26 Paid biveekly salaries, $4,800. Dec. 27 Paid the account payabie to Earth Movers, Inc., $900. Dec.28-Declared a dividend of 10 cents per sbare, payable on January 15, Year 2. Dec.29 Susquehanna Equipnent Rentals was nased, along with Mission Landscaping and Collier Construction, as a co-defendant in a 329 , eee lawsuit filed on beholf of Kevin Davenport. Mission Landscaping had left the rented backhoe in a fenced construction site owned by Collier Construction. After working hours on Decenber 26, Davenport had clinbed the fence to play on parked construction equipnent. While playing on the backhoe, he fell and broke tis ara. The extent of the conpany's legal and financial responsibility for this accident, if any, cannot be deternined at this tine. Wote: This event does not require a journal entry at this tine, but may require disclosure in notes acconganying the stotementsi) Dec.29 Purchased a 12-month public liability insurance policy for 59;120. This policy protects the coepany against liobility for injuries and property datage 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 December 26 . Dec.31 Received a bitl from Universal utitities for the nonth of Decenber, $660. Payment is due in 30 days. Record the entry to close revenue earned to income summary. Dec. 1 Issted to John and Patty Driver 27,000 shares of capital stock in exchange for a total of 527 , 00 cosh. Dec. I Purchased for $201,600 alt of the equipnent formerty owned by Rent-1t. Paid 5134,600 cash and issued a 1-year note payable for 967,600 . The note, plus alt 12 months of accrued interest, are doe Noventer 30, Year 2 Dec. 1 Paid $10,500 to Shapiro Reatty as three nonths' advance rent on the rental yard and office formerty occupied by Rent-It. Dec. 4 Purchased office supplies on account froe Modern office Co., $1,200. Payment due in 30 days. IThese supplies are expected to last for several nonths: debit the office supplies asset account. Dec. 8 Received 58,700 cash as advance paysent on equipnent rental fron Mciamer Construction Canpany. (Credit Unearned Rental Fees. Dec. 12 Paid salaries of $4,800 for the first two weeks in Deceeber. Dec. 15 Exclgding the McNaner advance, equipent rental fees earned during the first 15 days of Decenber bnounted to $18,600, of which $13, ee was received in cash. Dec.17 Purchased on account fron Earth Movers, Inc., $920 in parts needed to perform basic adintenance on a Dec, 23 Collected 32,100 of the accounts receivable recorded on Decenber 15. bec. 26 Rented a backhoe to Mission Landscaping at a price of $330 per day, to be paid uhen the backhoe is returned. Mission Landscaping expects to keep the backhoe for about two or three weeks. Dec.26 Paid biveekly salaries, $4,800. Dec. 27 Paid the account payabie to Earth Movers, Inc., $900. Dec.28-Declared a dividend of 10 cents per sbare, payable on January 15, Year 2. Dec.29 Susquehanna Equipnent Rentals was nased, along with Mission Landscaping and Collier Construction, as a co-defendant in a 329 , eee lawsuit filed on beholf of Kevin Davenport. Mission Landscaping had left the rented backhoe in a fenced construction site owned by Collier Construction. After working hours on Decenber 26, Davenport had clinbed the fence to play on parked construction equipnent. While playing on the backhoe, he fell and broke tis ara. The extent of the conpany's legal and financial responsibility for this accident, if any, cannot be deternined at this tine. Wote: This event does not require a journal entry at this tine, but may require disclosure in notes acconganying the stotementsi) Dec.29 Purchased a 12-month public liability insurance policy for 59;120. This policy protects the coepany against liobility for injuries and property datage 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 December 26 . Dec.31 Received a bitl from Universal utitities for the nonth of Decenber, $660. Payment is due in 30 days. Record the entry to close revenue earned to income summary