Here is the trial balance to answer the question Trial balance Ajustments 2500 Income staement Balance sheet Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr Cash $65,000 $65,000 $65,000 Accounts Receivable $8,400 1500 $9,900 $9,900 Unexpired Insurance $9,600 $9,600 $9,600 Prepaid Rent $12,000 4000 $8,000 $8,000 Office Supplies $1,000 400 $600 $600 Rental Equipment $240,000 $240,000 $240,000 Accumulated depreciation Rental equipmen 2500 $2,500 $2,500 Notes payable $100,000 $100,000 $100,000 Accounts payable $1,700 $1,700 $1,700 Unearned Rental fees $8,000 3700 $4,300 $4,300 Dividend Payable 2000 $2,000 $2,000 Capital stock 200000 $200,000 $200,000 Retained Earnings $11,620 Dividends 2000 2000 Salaries payable 1400 $1,400 $1,400 Interest payable 500 $500 $500 Income tax payable $9,080 0 $9,080 $9,080 Rental Fees earned 38000 5200 $43,200 $43,200 Salaries expenses $10,400 1400 $11,800 $11,800 Maitanence Expenses $600 $600 $600 Utilities expenses 700 $700 $700 Rent expenses $4,000 $4,000 $4,000 Depreciation expenses $2,500 $2,500 $2,500 Supples expenses $400 $400 $400 Interest expenses 500 $500 $500 Income before taxes $9,080 0 $9,080 $9,080 Net income $13,620 Total $349,700 $349,700 $23,080 $23,080 $364,680 $364,680 $43,200 $43,200 $333,100 $333,100 On December 1, 2015, John and Patty Driver formed a corporation called Susquehanna Equipment Rentals The new corporation was able to begin operations immediately by purchasing the assets and taking over the location of Rent It, an equipment rental company that was going out of business The newly formed company uses the following accounts Cash Capital stock Accounts receivable Retained earnings Prepaid rent Dividends Unexpired insurance Income summary Office supplies Rental fees earned Rental equipment Salaries expense Accumulated depreciation Rental equipment Maintenance expense Notes payable Utilities expense Accounts payable Rent expense Interest payable Office supplies expense Salaries payable Depreciation expense Dividends payable Interest expense Unearned rental fees Income taxes expense Income taxes payable The corporation performs adjusting entries monthly Closing entries are performed annually on December 31 During December, the corporation entered into the following transactions Dec 1 Issued to John and Patty Driver 20,000 shares of capital stock in exchange for a total of $200,000 cash Dec 1 Purchased for $240,000 all of the equipment formerly owned by Rent It Paid $140,000 cash and issued a one year note payable for $100,000 The note, plus all 12 months of accrued interest, are due November 30, 2016 Dec 1 Paid $12,000 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 , $1,000 Payment due in 30 days (These supplies are expected to last for several months debit the Office Supplies asset account ) Dec 8 Received $8,000 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, $5,200 Dec 15 Excluding the McNamer advance, equipment rental fees earned during the first 15 days of December amounted to $18,000, of which $12,000 was received in cash Dec 17 Purchased on account from Earth Movers, Inc , $600 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 on December 15 Dec 26 Rented a backhoe to Mission Landscaping at a price of $250 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, $5,200 Dec 27 Paid the account payable to Earth Movers, Inc , $600 Dec 28 Declared a dividend of 10 cents per share, payable on January 15, 2016 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 December 26, 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 companys 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 $9,600 This policy protects the company against liability for injuries and property damage caused by its equipment However, the policy goes into effect on January 1, 2016, and affords no coverage for the injuries sustained by Kevin Davenport on December 26 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 $20,000, of which $15,600 was received in cash Data for Adjusting Entries a The advance payment of rent on December 1 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 December 31 are estimated at $600 e During December, the company earned $3,700 of the rental fees paid in advance by McNamer Construction Company on December 8 f As of December 31, six days rent on the backhoe rented to Mission Landscaping on December 26 has been earned g Salaries earned by employees since the last payroll date (December 26) amounted to $1,400 at month end h It is estimated that the company is subject to a combined federal and state income tax rate of 40 percent of income before income taxes (total revenue minus all expenses other than income taxes) These taxes will be payable in 2016 Prepare a statement of retained earnings for the year ended December 31 SUSQUEHANNA EQUIPMENT RENTALS Statement of Retained Earnings For the Year Ended December 31, 2015 Retained earnings, December 1, 2015 Retained earnings, December 31, 2015 Prepare a statement of retained earnings for the year ended December 31 SUSQUEHANNA EQUIPMENT RENTALS Statement of Retained Earnings For the Year Ended December 31, 2015 Retained earnings, December 1, 2015 Retained earnings, December 31, 2015

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Here is the trial balance to answer the question Trial balance Ajustments 2500 Income staement Balance sheet Dr Cr Dr Cr Dr Cr Dr Cr

Here is the trial balance to answer the question

	Trial balance		Ajustments		2500		Income staement		Balance sheet
	Dr	Cr	Dr	Cr	Dr	Cr	Dr	Cr	Dr	Cr
Cash	$65,000				$65,000				$65,000
Accounts Receivable	$8,400		1500		$9,900				$9,900
Unexpired Insurance	$9,600				$9,600				$9,600
Prepaid Rent	$12,000			4000	$8,000				$8,000
Office Supplies	$1,000			400	$600				$600
Rental Equipment	$240,000				$240,000				$240,000
Accumulated depreciation: Rental equipmen				2500		$2,500				$2,500
Notes payable		$100,000				$100,000				$100,000
Accounts payable		$1,700				$1,700				$1,700
Unearned Rental fees		$8,000	3700			$4,300				$4,300
Dividend Payable		2000				$2,000				$2,000
Capital stock		200000				$200,000				$200,000
Retained Earnings										$11,620
Dividends	2000				2000
Salaries payable				1400		$1,400				$1,400
Interest payable				500		$500				$500
Income tax payable				$9,080.0		$9,080				$9,080
Rental Fees earned		38000		5200		$43,200		$43,200
Salaries expenses	$10,400		1400		$11,800		$11,800
Maitanence Expenses	$600				$600		$600
Utilities expenses	700				$700		$700
Rent expenses			$4,000		$4,000		$4,000
Depreciation expenses			$2,500		$2,500		$2,500
Supples expenses			$400		$400		$400
Interest expenses			500		$500		$500
Income before taxes			$9,080.0		$9,080		$9,080
Net income							$13,620

Total	$349,700	$349,700	$23,080	$23,080	$364,680	$364,680	$43,200	$43,200	$333,100	$333,100

On December 1, 2015, John and Patty Driver formed a corporation called Susquehanna Equipment Rentals. The new corporation was able to begin operations immediately by purchasing the assets and taking over the location of Rent-It, an equipment rental company that was going out of business. The newly formed company uses the following accounts:

Cash	Capital stock
Accounts receivable	Retained earnings
Prepaid rent	Dividends
Unexpired insurance	Income summary
Office supplies	Rental fees earned
Rental equipment	Salaries expense
Accumulated depreciation: Rental equipment	Maintenance expense
Notes payable	Utilities expense
Accounts payable	Rent expense
Interest payable	Office supplies expense
Salaries payable	Depreciation expense
Dividends payable	Interest expense
Unearned rental fees	Income taxes expense
Income taxes payable

The corporation performs adjusting entries monthly. Closing entries are performed annually on December 31. During December, the corporation entered into the following transactions:

Dec. 1		Issued to John and Patty Driver 20,000 shares of capital stock in exchange for a total of $200,000 cash.
Dec. 1		Purchased for $240,000 all of the equipment formerly owned by Rent-It. Paid $140,000 cash and issued a one-year note payable for $100,000. The note, plus all 12-months of accrued interest, are due November 30, 2016.
Dec. 1		Paid $12,000 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., $1,000. Payment due in 30 days. (These supplies are expected to last for several months; debit the Office Supplies asset account.)
Dec. 8		Received $8,000 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, $5,200.
Dec. 15		Excluding the McNamer advance, equipment rental fees earned during the first 15 days of December amounted to $18,000, of which $12,000 was received in cash.
Dec. 17		Purchased on account from Earth Movers, Inc., $600 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 on December 15.
Dec. 26		Rented a backhoe to Mission Landscaping at a price of $250 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, $5,200.
Dec. 27		Paid the account payable to Earth Movers, Inc., $600.
Dec. 28		Declared a dividend of 10 cents per share, payable on January 15, 2016.
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 December 26, 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 companys 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 $9,600. This policy protects the company against liability for injuries and property damage caused by its equipment. However, the policy goes into effect on January 1, 2016, and affords no coverage for the injuries sustained by Kevin Davenport on December 26.
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 $20,000, of which $15,600 was received in cash.

Data for Adjusting Entries

a.	The advance payment of rent on December 1 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 December 31 are estimated at $600.
e.	During December, the company earned $3,700 of the rental fees paid in advance by McNamer Construction Company on December 8.
f.	As of December 31, six days rent on the backhoe rented to Mission Landscaping on December 26 has been earned.
g.	Salaries earned by employees since the last payroll date (December 26) amounted to $1,400 at month-end.
h.	It is estimated that the company is subject to a combined federal and state income tax rate of 40 percent of income before income taxes (total revenue minus all expenses other than income taxes). These taxes will be payable in 2016.

Prepare a statement of retained earnings for the year ended December 31. SUSQUEHANNA EQUIPMENT RENTALS Statement of Retained Earnings For the Year Ended December 31, 2015 Retained earnings, December 1, 2015 Retained earnings, December 31, 2015 Prepare a statement of retained earnings for the year ended December 31. SUSQUEHANNA EQUIPMENT RENTALS Statement of Retained Earnings For the Year Ended December 31, 2015 Retained earnings, December 1, 2015 Retained earnings, December 31, 2015