Dec. 29 Susquehanna Equipment Rentals was named, along with Mission Landscaping and Collier Construction, as a co-defendant in a $22,000 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 $8,520. 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 $20,700, of which $16,400 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-It 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 $700. e. During December, the company earned $4,000 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 $1,700 at month- end. h. It is estimated that the company is subject to an income tax rate of 40 percent of profit before income taxes (total revenue minus all expenses other than income taxes). These taxes will be payable in 2014. Journalize the December transactions. Do not record adjusting entries at this point. (In cases where no entry is required, please select the option "No journal entry required" for your answer to grade correctly. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) General Journal Debit Credit Date Dec. 1 (Click to select) (Click to select) (Click to select) . (Click to select) (Click to select) 1 (Click to select) (Click to select) 4 (Click to select) (Click to select) 8 (Click to select) (Click to select) 12 (Click to select) (Click to select) 15 (Click to select) (Click to select) (Click to select) 17 (Click to select) (Click to select) 23 (Click to select) (Click to select) 26 (Click to select) (Click to select) . 26 ^ (Click to select) (Click to select) 27 (Click to select) (Click to select) 28 (Click to select) (Click to select) 29 (Click to select) (Click to select) 29 (Click to select) (Click to select) 31 (Click to select) (Click to select) 31 (Click to select) (Click to select) (Click to select) Prepare the necessary adjusting entries for December. (Do not round intermediate calculations and round your final answers to the nearest dollar amount. Omit the "$" sign in your response.) Date General Journal Debit Credit Dec. 31 (Click to select) (Click to select) 31 (Click to select) (Click to select) 31 (Click to select) (Click to select) 31 (Click to select) (Click to select) 31 (Click to select) (Click to select) . 31 (Click to select) (Click to select) 31 (Click to select) (Click to select) 31 (Click to select) (Click to select) Prepare closing entries and post to ledger accounts. (Do not round intermediate calculations. Omit the "$" 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) Post the entries into the following ledger accounts. (Record the transactions in the given order. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) GENERAL LEDGER Cash Credit Date Debit Balance Dec. 1 1 1 8 12 15 23 26 27 29 31 Accounts Receivable Credit Date Debit Balance Dec. 15 23 31 31 Prepaid Rent Credit Debit Balance Date Dec. 1 31 Unexpired Insurance Credit Date Debit Balance Dec. 29 Office Supplies Credit Debit Balance Date Dec. 4 31 Rental Equipment Credit Date Debit Balance Dec. 1 Accumulated Depreciation: Rental Equipment Debit Credit Balance Date Dec. 31 Notes Payable Credit Date Debit Balance Dec. 1 Debit Accounts Payable Credit Balance Date Dec. 4 17 27 31 Interest Payable Credit Date Debit Balance Dec. 31 Salaries Payable Credit Date Debit Balance Dec. 31 Dividends Payable Credit Debit Balance Date Dec. 28 Unearned Rental Fees Credit Date Debit Balance Unearned Rental Fees Credit Date Debit Balance Dec. 8 31 Income Taxes Payable Credit Debit Balance Date Dec. 31 Share Capital Credit Debit Balance Date Dec. 1 Retained Earnings Credit Debit Balance Date Dec. 31 31 Dividends Credit Date Debit Balance Dec. 28 31 Income Summary Credit Date Debit Balance Dec. 31 31 31 Date Debit Rental Fees Earned Credit Balance Dec. 15 31 31 31 31 Salaries Expense Credit Debit Balance Date Dec. 12 26 31 31 Maintenance Expense Credit Debit Balance Date Dec. 17 30 Utilities Expense Credit Date Debit Balance Dec. 31 31 Rent Expense Credit Debit Balance Date Dec. 31 31 Office Supplies Expense Credit Date Debit Balance Dec. 31 31 Depreciation Expense Credit Date Debit Balance Dec. 31 31 Interest Expense Credit Debit Balance Date Dec. 31 31 Income Taxes Expense Credit Debit Balance Date Dec. 31 31 value: 10.00 points Prepare an income statement for the year ended December 31. (Input all amounts as positive values. Do not round intermediate calculations and round your final answers to the nearest dollar amount. Omit the "$" 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) (Click to select) $ 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 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 "$" 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 $ 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 $ 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 "$" 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) $ $ Totals