On 1 December 2013, 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	Share Capital
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 31 December. During December, the corporation entered into the following transactions:

Dec.	1	Issued to John and Patty Driver 26,000 new shares in exchange for a total of $260,000 cash.
Dec.	1	Purchased for $278,400 all of the equipment formerly owned by Rent-It. Paid $131,000 cash and issued a one-year note payable for $147,400. The notes, plus all 12-months of accrued interest, are due 30 November 2013.
Dec.	1	Paid $9,600 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., $1,700. Payment due in 30 days. (These supplies are expected to last for several months; debit the Office Supplies asset account.)
Dec.	8	Received $8,600 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, $4,300.
Dec.	15	Excluding the McNamer advance, equipment rental fees earned during the first 15 days of December amounted to $18,500, of which $12,900 was received in cash.
Dec.	17	Purchased on account from Earth Movers Limited, $600 in parts needed to repair a rental tractor. (Debit an expense account.) Payment is due in 10 days.
Dec.	23	Collected $2,800 of the accounts receivable recorded on15 December.
Dec.	26	Rented a backhoe to Mission Landscaping at a price of $300 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, $4,300.
Dec.	27	Paid the account payable to Earth Movers Limited, $600.
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 $26,000 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 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 $8,880. 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, $680. Payment is due in 30 days.
Dec.	31	Equipment rental fees earned during the second half of December amounted to $20,000, of which $16,100 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 $680.
e.	During December, the company earned $4,200 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 $1,600 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.

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)Accounts receivableAccounts payableOffice suppliesRental equipmentInterest payableCashPrepaid rent		$
(Click to select)CashOffice suppliesAccounts receivablePrepaid rentInterest payableAccounts payableRental equipment
(Click to select)CashPrepaid rentAccounts receivableUnexpired insuranceRent expenseAccounts payableOffice supplies
(Click to select)Accounts receivableAccounts payableUnexpired insurancePrepaid rentOffice suppliesRent expenseCash
(Click to select)CashUnexpired insuranceRent expenseAccounts payableAccounts receivablePrepaid rentOffice supplies
(Click to select)Accounts payablePrepaid rentInterest payableCashAccounts receivableOffice suppliesRental equipment
(Click to select)Prepaid rentLess: Accumulated depreciationAccounts receivableAccounts payableAdd: Accumulated depreciationRental equipmentOffice supplies
Total Assets		$
Liabilities & Equity
Liabilities:
(Click to select)Salaries expensePrepaid rentCashOffice equipmentAccounts receivableOffice suppliesNotes payable		$
(Click to select)Office suppliesAccounts receivableAccounts payableOffice equipmentCashPrepaid rentSalaries expense
(Click to select)Accounts receivableOffice suppliesSalaries payableUnearned rental feesDividends payableIncome taxes payableInterest payable
(Click to select)Unearned rental feesDividends payableAccounts receivableOffice suppliesIncome taxes payableInterest payableSalaries payable
(Click to select)Accounts receivableIncome taxes payableInterest payableUnearned rental feesSalaries payableOffice suppliesDividends payable
(Click to select)Office suppliesAccounts receivableUnearned rental feesInterest payableDividends payableIncome taxes payableSalaries payable
(Click to select)Unearned rental feesOffice suppliesDividends payableInterest payableAccounts receivableIncome taxes payableSalaries payable
Total Liabilities		$
Shareholders' equity:
(Click to select)Share capitalRetained earningsRental fees earnedRental equipmentAccounts receivableOffice suppliesCash		$
(Click to select)Rental fees earnedAccounts receivableShare capitalRental equipmentRetained earningsCashOffice supplies
Total Shareholders' Equity		$
Total Liabilities and Shareholders' Equity		$