Dec. 1 Issued to John and Patty Driver 24,000 new shares in exchange for a total of $240,000 cash. Dec. 1 Purchased for $211,200 all of the equipment formerly owned by Rent-lt. Paid $131,000 cash and issued a one-year note payable for $80,200. The notes, plus all 12-months of accrued interest, are due 30 November 2013. Dec. 1 Paid $10,200 to Shapiro Realty as three months' advance rent on the rental yard and office formerly occupied by Rent-It. Dec. 4 Purchased office supplies on account from Modern Office Co., $1,100. Payment due in 30 days. (These supplies are expected to last for several months; debit the Office Supplies asset account.) Dec. 8 Received $8,500 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, $5,100. Dec. 15 Excluding the McNamer advance, equipment rental fees earned during the first 15 days of December amounted to $18,800, of which $12,400 was received in cash. Dec. 17 Purchased on account from Earth Movers Limited, $500 in parts needed to repair a rental tractor. (Debit an expense account.) Payment is due in 10 days. Dec. 23 Collected $2,100 of the accounts receivable recorded on 15 December. Dec. 26 Rented a backhoe to Mission Landscaping at a price of $260 per day, to be paid when the backhoe is returned. Mission Landscaping expects to keep the backhoe for about two or three weeks. Dec. 26 Paid biweekly salaries, $5,100. Dec. 27 Paid the account payable to Earth Movers Limited, $500. Dec. 28 Declared a dividend of 10 cents per share, payable on 15 January 2014. Dec. 29 Susquehanna Equipment Rentals was named, along with Mission Landscaping and Collier Construction, as a co-defendant in a $21,000 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 26 December, Davenport had climbed the fence to play on parked construction equipment. While playing on the backhoe, he fell and broke his arm. The extent of the company's legal and financial responsibility for this accident, if any, cannot be determined at this time. (Note: This event does not require a journal entry at this time, but may require disclosure in notes accompanying the statements.) Dec. 29 Purchased a 12-month public-liability insurance policy for $8,400. This policy protects the company against liability for injuries and property damage caused by its equipment. However, the policy goes into effect on 1 January 2014, and affords no coverage for the injuries sustained by Kevin Davenport on 26 December Dec. 31 Received a bill from Universal Utilities for the month of December, $650. Payment is due in 30 days. Dec. 31 Equipment rental fees earned during the second half of December amounted to $20,800, of which $15,600 was received in cash. Data for Adjusting Entries a. The advance payment of rent on 1 December covered a period of three months. b. The annual interest rate on the note payable to Rent-lt 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 at 31 December are estimated at $650. e. During December, the company earned $3,900 of the rental fees paid in advance by McNamer Construction Co.on 8 December. f. As of 31 December, six days' rent on the backhoe rented to Mission Landscaping on 26 December has been earned. g. Salaries earned by employees since the last payroll date (26 December) amounted to $1,200 at month- end. h. It is estimated that the company is subject to an income tax rate of 40 percent of profit before income taxes (total revenue minus all expenses other than income taxes). These taxes will be payable in 2014. General Journal Credit Date Dec. 1 Debit 240000 Cash Share Capital 240000 1 211200 Rental equipment Cash Notes payable 131000 80200 1 10200 Prepaid rent Cash 10200 4 1100 Office supplies Accounts payable 1100 8 8500 Cash Unearned rental fees 8500 12 5100 Salaries expense Cash 5100 15 Cash Accounts receivable Rental fees earned 12400 6400 18800 17 500 Maintenance expense Accounts payable 500 23 2100 Cash Accounts receivable 2100 26 0 No journal entry required No journal entry required 26 5100 Salaries expense Cash 5100 27 500 Accounts payable Cash 500 28 Dividends Dividends payable 29 No journal entry required No journal entry required 8400 29 Unexpired insurance Cash 8400 31 650 Utilities expense Cash 650 31 15600 Cash Accounts receivable Rental fees earned 5200 > > 20800 Prepare the necessary adjusting entries for December. (Do not round intermediate calculations and round your final answers to the nearest dollar amount. Omit the "$" sign in your response.) Date General Journal Debit Credit Dec 31 Rent expense Prepaid rent 31 Interest expense Interest payable 31 Depreciation expense Accumulated depreciation: Rental equip. 31 Office supplies expense Office supplies 31 Unearned rental fees Rental fees earned IIIIIII 31 Accounts receivable Rental fees earned 31 Salaries expense Salaries payable 31 Income taxes expense Income taxes payable Prepare closing entries and post to ledger accounts. (Do not round intermediate calculations. Omit the "$" sign in your response.) Date General Journal Debit Credit Dec 31 (Click to select) (Click to select) 31 (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) 31 (Click to select) (Click to select) 31 (Click to select) (Click to select) 10 Interest Payable Credit Debit Balance Date Dec. 31 Debit Salaries Payable Credit Balance Date Dec. 31 Dividends Payable Credit Debit Balance Date Dec. 28 Debit Unearned Rental Fees Credit Balance Date Dec 8 31 Income Taxes Payable Credit Debit Balance Date Dec. 31 Share Capital Credit Debit Balance Date Dec 1 Retained Earnings Credit Debit Balance Date Dec 31 31 Dividends Credit Debit Balance Date Dec. 28 31 Income Summary Credit Debit Balance Date Dec. 31 31 31 Rental Fees Earned Credit Debit Balance Date Dec 15 31 31 31 31 Debit Salaries Expense Credit Balance Date Dec 12 28 31 31 Maintenance Expense Credit Debit Balance Date Dec. 17 30 Utilities Expense Credit Debit Balance Date Dec. 31 31 Rent Expense Credit Debit Balance Date Dec. 31 31 Office Supplies Expense Credit Debit Balance Date Dec. 31 31 Depreciation Expense Credit Debit Balance Date Dec. 31 31 Interest Expense Credit Debit Balance Date Dec. 31 31 Income Taxes Expense Credit Debit Balance Date Dec. 31 31 3. value: 10.00 points $ Prepare an income statement for the year ended December 31. (Input all amounts as positive values. Do not round intermediate calculations and round your final answers to the nearest dollar amount. Omit the "S" sign in your response.) SUSQUEHANNA EQUIPMENT RENTALS Income Statement For the Year Ended December 31, 2013 Revenue: (Click to select) Expenses (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) M ) (Click to select) (Click to select) (Click to select) 4. value: 5.00 points Prepare a statement of changes in equity for the year ended December 31. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) SUSQUEHANNA EQUIPMENT RENTALS Statement of Changes in Equity For the Year Ended December 31, 2013 Retained earnings, December 1, 2013 (Click to select) $ Subtotal (Click to select) Retained earnings, December 31, 2013 $ 5. value: 10.00 points Prepare a statement of financial position (in report form) as at December 31. (Input all amounts as positive values. Be sure to list the assets and liabilities in order of their liquidity. Omit the "S" sign in your response.) SUSQUEHANNA EQUIPMENT RENTALS Statement of financial position December 31, 2013 Assets (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) Total Assets I jo mm Liabilities & Equity Liabilities: (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) Total Liabilities Shareholders' equity: (Click to select) (Click to select) Total Shareholders' Equity Total Liabilities and Shareholders' Equity 6. value: 5.00 points Prepare an after-closing trial balance as of December 31. (The items in the Trial Balance should be grouped as follows: Assets in order of their liquidity), Liabilities (in order of their liquidity) and Equity. Omit the "S" sign in your response.) SUSQUEHANNA EQUIPMENT RENTALS After-Closing Trial Balance December 31, 2013 Debit Credit (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) mun S 0 Totals