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 Accounts Receivable Prepaid Rent Unexpired Insurance Office Supplies Rental Equipment Accumulated Depreciation Rental Equipment Notes Payable Accounts Payable Interest Payable Salaries Payable Dividends Payable Unearned Rental Fees Income Taxes Payable Share Capital Retained Earnings Dividends Income Summary Rental Fees Earned Salaries Expense Maintenance Expense Utilities Expense Rent Expense Office Supplies Expense Depreciation Expense Interest Expense Income Taxes Expense 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 24,000 new shares in exchange for a total of $240,000 cash. Dec. 1 Purchased for $278,400 all of the equipment formerly owned by Rent-It. Paid $139,000 cash and issued a one-year note payable for $139,400. The notes, plus all 12-months of accrued interest, are due 30 November 2013 Dec. 1 Paid $10,500 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 $8,300 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, $4,400. Dec. 15 Excluding the McNamer advance, equipment rental fees earned during the first 15 days of December amounted to $18,500, of which $12,600 was received in cash. Dec. 17 Purchased on account from Earth Movers Limited, $900 in parts needed to repair a rental tractor (Debit an expense account.) Payment is due in 10 days. Dec. 23 Collected $2.500 of the accounts receivable recorded on 15 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, $4,400. Dec. 27 Paid the account payable to Earth Movers Limited, $900 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 $29,000 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 $9,000. 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 $20,000, of which $16,200 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 $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 $1,200 at month- end. h. It is estimated that the company is subject to an income tax rate of 40 percent of profit before income https://ezto.mheducation.com/hm.tpx 1/7 07/03/2021 07.09.2001 Assige 2 Lawrow pensul than incel Tinsel will payable in 2014 31 Click to Cick loco 1. Required Information 45.00 points 31 Click to select Cick to select 31 (Click to select Cick to select) Journalize the December transactions. Do not record og tiles at this point in cases where the antry is required, please sent the option "No journal entry required for your answer to grade correctly. Leave no cells blank - be certain to enter" wherever required. Omit the "S" sign in your response.) Generalne Detail Cri Doc. 1 Cash 240000 Sh Capti 240000 31 Click to solo Click to 31 (Click to select Click to select) 278400 1 Runtalment Cash Notos payable 31 (Check in wel Click to select 138000 139.400 31 (Click to en Click to 10500 1 Prepaid rent Cash 10500 1000 4 Oca supplies Accounts payable Prepare closing and palloger ca. Do not round in armediate calculations. Omit the "S" sign in your response 1000 C 8300 B Cash Uneamed rentales Gaur Dec 31 Rottees cames Income summary 8300 4400 12 Salaries expense Cash . 4400 15 Accounts receive 59001 12800 31 Income LINY Bahamas Maintenance expert User Cick to select Cick to select) IClick to select ) Click to Click to select Rental los corred 1600 300 Manen Accounts payable 900 23 Cash A Riva 2500 2500 31 Click to select Cack to select) 26 1800 Accounts receivable Click to 1000 31 Chen Click to 4400 26 Salaries e pensa Cash 4400 27 Assos polo 900 300 2 Dividends 2000 2. Required information Dende payable 25.00 points 2900 29 Click to select) (Click to select 9000 29 Lei Cash Prest the entries into the following ledgar acron (Record the transactions in the given order. LOX no cells blank - be certain to enter wherever required. Omit the "S" sign in your response GENERAL LEDGER Ca Date Debt Bale 9000 1 1 1 Armun pable 31 B Click to Click to select) (Click to select 15 26 27 29 31 Prepare the cry wing for DucumbetDo not found intermediat calculation and round your final wer to the nearest dollar amount. Omit the "Sign in your respons General Inung Dahit Cr Dec. 31 Cick to select Click to select hitperiorhechication commige hiipide maha.com 17 MOTDOIT mmm 07.03/2001 Ass 2 07/03/2001 Assigt 3. 1000 points Round information Click to select Click to select Click to see! (Click to Tosial About Liabilities & Equity Llabilities: (Click to scoct) Click to Prepare nella for the year anded December 21. reputul mount positive values. De not round intermediate calculations and round your final to the eart dollar amount Omit the "S" sign in your response SUSQUEHWNNA EQUIPMENT RENTALS Income Statement For the Year Decor Revenue Click to select) Ex Ook to select Click to Click to select) Gick to select Click to select) Click lock sklad Click sooth Click!) Click! Click to Y Tocal Labs Shareholders' equity (Click to (Click to see Click to select Click to select) Total Shareholder ty Tocal Liabilities and Shareholders Bouty sl 4. Recured Information 500 points 6. 5.00 points Required information Prepare a statement of changes in equity for the year ended December 31. (Input all amounts as positive values. Leave no calle blank - be certain to enter" whenever mquired. Omit the sign in your response . ) Prepare an order to December 31, (The bams in the Trial Balance should be groupadas follows: As in order of their liquidity Liabilities in order of their liquidity) and Equity. Omit the "s" sign in your response. SUSQUEHANNA EQUIPMENT RENTALS Statement of Changes in Equity For the Year Ended December 31, 2013 Retired aming December 1, 2013 Click to select SUSQUEHANNA EQUIPMENT RENTALS After-Closing Trial Balance December 31, 2013 Det re Subia (Click to soloti Click! (Click to select (Click soci Click to Click to Retained emings. December 31, 2013 Click 6:14 : || Chic Click to Click to Click to secti Click to select Click to select Click to see Click to soot 5. Rigured Information 1000 points Tui $ Prepare a statement of financial position in report formas at December 31. (Input all amounts as positive values sure to list the band liabilities in order of their liquidity. Omit than in your response) SUSQUEHANNA EQUIPMENT RENTALS Statement of financial position December 31, 2013 Asses Click to select Click to select Click to select 2021 Merw. Alth haps/exto meducation.com.mx httpeto medication.com ipo 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 Accounts Receivable Prepaid Rent Unexpired Insurance Office Supplies Rental Equipment Accumulated Depreciation Rental Equipment Notes Payable Accounts Payable Interest Payable Salaries Payable Dividends Payable Unearned Rental Fees Income Taxes Payable Share Capital Retained Earnings Dividends Income Summary Rental Fees Earned Salaries Expense Maintenance Expense Utilities Expense Rent Expense Office Supplies Expense Depreciation Expense Interest Expense Income Taxes Expense 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 24,000 new shares in exchange for a total of $240,000 cash. Dec. 1 Purchased for $278,400 all of the equipment formerly owned by Rent-It. Paid $139,000 cash and issued a one-year note payable for $139,400. The notes, plus all 12-months of accrued interest, are due 30 November 2013 Dec. 1 Paid $10,500 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 $8,300 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, $4,400. Dec. 15 Excluding the McNamer advance, equipment rental fees earned during the first 15 days of December amounted to $18,500, of which $12,600 was received in cash. Dec. 17 Purchased on account from Earth Movers Limited, $900 in parts needed to repair a rental tractor (Debit an expense account.) Payment is due in 10 days. Dec. 23 Collected $2.500 of the accounts receivable recorded on 15 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, $4,400. Dec. 27 Paid the account payable to Earth Movers Limited, $900 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 $29,000 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 $9,000. 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 $20,000, of which $16,200 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 $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 $1,200 at month- end. h. It is estimated that the company is subject to an income tax rate of 40 percent of profit before income https://ezto.mheducation.com/hm.tpx 1/7 07/03/2021 07.09.2001 Assige 2 Lawrow pensul than incel Tinsel will payable in 2014 31 Click to Cick loco 1. Required Information 45.00 points 31 Click to select Cick to select 31 (Click to select Cick to select) Journalize the December transactions. Do not record og tiles at this point in cases where the antry is required, please sent the option "No journal entry required for your answer to grade correctly. Leave no cells blank - be certain to enter" wherever required. Omit the "S" sign in your response.) Generalne Detail Cri Doc. 1 Cash 240000 Sh Capti 240000 31 Click to solo Click to 31 (Click to select Click to select) 278400 1 Runtalment Cash Notos payable 31 (Check in wel Click to select 138000 139.400 31 (Click to en Click to 10500 1 Prepaid rent Cash 10500 1000 4 Oca supplies Accounts payable Prepare closing and palloger ca. Do not round in armediate calculations. Omit the "S" sign in your response 1000 C 8300 B Cash Uneamed rentales Gaur Dec 31 Rottees cames Income summary 8300 4400 12 Salaries expense Cash . 4400 15 Accounts receive 59001 12800 31 Income LINY Bahamas Maintenance expert User Cick to select Cick to select) IClick to select ) Click to Click to select Rental los corred 1600 300 Manen Accounts payable 900 23 Cash A Riva 2500 2500 31 Click to select Cack to select) 26 1800 Accounts receivable Click to 1000 31 Chen Click to 4400 26 Salaries e pensa Cash 4400 27 Assos polo 900 300 2 Dividends 2000 2. Required information Dende payable 25.00 points 2900 29 Click to select) (Click to select 9000 29 Lei Cash Prest the entries into the following ledgar acron (Record the transactions in the given order. LOX no cells blank - be certain to enter wherever required. Omit the "S" sign in your response GENERAL LEDGER Ca Date Debt Bale 9000 1 1 1 Armun pable 31 B Click to Click to select) (Click to select 15 26 27 29 31 Prepare the cry wing for DucumbetDo not found intermediat calculation and round your final wer to the nearest dollar amount. Omit the "Sign in your respons General Inung Dahit Cr Dec. 31 Cick to select Click to select hitperiorhechication commige hiipide maha.com 17 MOTDOIT mmm 07.03/2001 Ass 2 07/03/2001 Assigt 3. 1000 points Round information Click to select Click to select Click to see! (Click to Tosial About Liabilities & Equity Llabilities: (Click to scoct) Click to Prepare nella for the year anded December 21. reputul mount positive values. De not round intermediate calculations and round your final to the eart dollar amount Omit the "S" sign in your response SUSQUEHWNNA EQUIPMENT RENTALS Income Statement For the Year Decor Revenue Click to select) Ex Ook to select Click to Click to select) Gick to select Click to select) Click lock sklad Click sooth Click!) Click! Click to Y Tocal Labs Shareholders' equity (Click to (Click to see Click to select Click to select) Total Shareholder ty Tocal Liabilities and Shareholders Bouty sl 4. Recured Information 500 points 6. 5.00 points Required information Prepare a statement of changes in equity for the year ended December 31. (Input all amounts as positive values. Leave no calle blank - be certain to enter" whenever mquired. Omit the sign in your response . ) Prepare an order to December 31, (The bams in the Trial Balance should be groupadas follows: As in order of their liquidity Liabilities in order of their liquidity) and Equity. Omit the "s" sign in your response. SUSQUEHANNA EQUIPMENT RENTALS Statement of Changes in Equity For the Year Ended December 31, 2013 Retired aming December 1, 2013 Click to select SUSQUEHANNA EQUIPMENT RENTALS After-Closing Trial Balance December 31, 2013 Det re Subia (Click to soloti Click! (Click to select (Click soci Click to Click to Retained emings. December 31, 2013 Click 6:14 : || Chic Click to Click to Click to secti Click to select Click to select Click to see Click to soot 5. Rigured Information 1000 points Tui $ Prepare a statement of financial position in report formas at December 31. (Input all amounts as positive values sure to list the band liabilities in order of their liquidity. Omit than in your response) SUSQUEHANNA EQUIPMENT RENTALS Statement of financial position December 31, 2013 Asses Click to select Click to select Click to select 2021 Merw. Alth haps/exto meducation.com.mx httpeto medication.com ipo