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 $220,800 all of the equipment formerly owned by Rent-lt. Paid $133,000 cash and issued a one-year note payable for $87.800. The notes, plus all 12-months of accrued Interest, are due 30 November 2013. Dec. 1 Paid $11.400 to Shapiro Realty as three months' advance rent on the rental yard and office formerly occupled 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 $8,400 cash as advance payment on equipment rental from McNamer Construction Company. (Credit Unearned Rental Fees.) Dec. 12 Pald salaries for the first two weeks in December, $4,500. Dec. 15 Excluding the McNamer advance, equipment rental fees earned during the first 15 days of December amounted to $18,100, of which $12.200 was received in cash. Dec. 17 Purchased on account from Earth Movers Limited, $800 in parts needed to repair a rental tractor. (Debit an expense account.) Payment is due in 10 days. Dec. 23 Collected $2,000 of the accounts receivable recorded on15 December Dec. 26 Rented a backhoe to Mission Landscaping at a price of $310 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 salarles, $4,500. Dec. 27 Paid the account payable to Earth Movers Limited, $800. 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 $25,000 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 $8.640. 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, $700. Payment is due in 30 days. Dec. 31 Equipment rental fees earned during the second half of December amounted to $20,400, of which $15,800 was received in cash. 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 $610. e. During December, the company earned $4.300 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 $1,100 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. 1 220800 Rental equipment Cash Notes payable 133000 87800 11400 1 Prepaid rent Cash 11400 4 1100 Office supplies Accounts payable 1100 8400 8 Cash Unearned rental fees 8400 12 4500 Salaries expense Cash 4500 15 Cash Accounts receivable Rental fees earned 12200 5900 18100 17 800 Maintenance expense Cash 800 23 2000 Cash Accounts receivable 2000 0 26 No journal entry required No journal entry required 0 26 4500 Salaries expense Cash 4500 800 27 Accounts payable Cash 800 28 2200 Dividends Dividends payable v 2200 0 29 No journal entry required No journal entry required 0 29 8640 Unexpired insurance Cash 8640 31 700 Utilities expense Accounts payable 700 31 Accounts receivable Cash Rental faec earned 4600 15800 nann Prepare the necessary adjusting entries for December. (Do not round intermediate calculations and round your final answers to the nearest dollar amount. Omit the "S" sign in your response.) Date General Journal Debit Credit Dec 31 Rent expense 3800 Prepaid rent 3800 439 31 Interest expense Interest payable 439 2300 31 Depreciation expense (Click to select) 2300 31 490 Office supplies expense Office supplies 490 4300 31 Unearned rental fees Rental fees earned 4300 18000 31 Accounts receivable Rental fees earned 18000 1100 31 Salaries expense Salaries payable 1100 31 15800 Income taxes expense Dividends payable 15800 Prepare closing entries and post to ledger accounts. (Do not round intermediate calculations. Omit the "S" sign in your response.) Date General Journal Debit Credit Dec. 31 Rent fees earned Income summary 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 Y (Click to select) (Click to select) 31 (Click to select) (Click to select) Post the entries into the following ledger accounts. (Record the transactions in the given order. Leave no cells blank - be certain to enter "o" wherever required. Omit the "S" sign in your response.) GENERAL LEDGER Cash Date Debit Credit Balance Dec. 1 1 1 8 12 15 23 26 27 29 31 Accounts Receivable Credit Debit Balance Date Dec. 15 23 31 31 Debit Prepaid Rent Credit Balance Date Dec. 1 31 Unexpired Insurance Credit Debit Balance Date Dec. 29 Office Supplies Credit Debit Balance Date Dec. 4 31 Debit Rental Equipment Credit Balance Date Dec 1 Accumulated Depreciation: Rental Equipment Debit Credit Balance Date Dec. 31 Notes Payable Credit Debit Balance Date Dec. 1 Accounts Payable Credit Debit Balance Date Dec. 4 17 27 31 Interest Payable Credit Debit Balance Date Dec. 31 Salaries Payable Credit Debit Balance Date Dec. 31 Debit Dividends Payable Credit Balance Date Dec. 28 Unearned Rental Fees Credit Debit 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 Debit Rental Fees Earned Credit Balance Date Dec. 15 31 31 31 31 Salaries Expense Credit Debit Balance Date Dec. 12 26 31 31 Debit Maintenance Expense Credit Balance Date Dec. 17 30 Debit Utilities Expense Credit Balance Date Dec. 31 31 Rent Expense Credit Debit Balance Date Dec. 31 31 Debit Office Supplies Expense Credit Balance Date Dec. 31 31 Debit Depreciation Expense Credit 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) (Click to select) (Click to select) $ 7 EA (Click to select) $ 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 SUSQUEHANNA EQUIPMENT RENTALS Statement of financial position December 31, 2013 EA Assets (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) Total Assets $ $ $ 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) 7 S A Totals