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-lt, 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: 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 27,000 new shares in exchange for a total of $270,000 cash. Dec. 1 Purchased for $192,000 all of the equipment formerly owned by Rent-It. Paid $137,000 cash and issued a one-year note payable for $55,000. The notes, plus all 12-months of accrued interest, are due 30 November 2013. Dec. 1 Paid $10,800 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., $1,600. Payment due in 30 days. (These supplies are expected to last for several months; debit the Office Supplies asset account.) Dec. 8 Received $9,000 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, $4,600. Dec. 15 Excluding the McNamer advance, equipment rental fees earned during the first 15 days of December amounted to $18,600, of which $12,800 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 $2,700 of the accounts receivable recorded on 15 December. Dec. 26 Rented a backhoe to Mission Landscaping at a price of $270 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, $4,600. 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 $21,000 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 $8,760. 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 $20,900, of which $16,600 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 d. Office supplies on hand at 31 December are estimated at $700. e. During December, the company earned $4,500 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 $1,500 at month- end. h. It is estimated that the company is subject to an income tax rate of 30 percent of profit taxes (total revenue minus all expenses other than income taxes). These taxes will be payable in 2014. entry is required, please select the option "No journal entry required for your answer to grade correctly. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) Credit Date Dec. 1 General Joumal Cash Share Capital Debit 270000 270000 1 192000 Rental equipment Cash Notes payable 137,000 55,000 1 10800 Cash Prepaid rent 10800 4 1600 Office supplies Accounts payable 1600 8 9000 Cash Unearned rental fees 9000 12 4600 Salaries expense Cash 4600 15 Cash Accounts receivable Rental fees earned 12,800 5,800 18600 17 600 Maintenance expense Accounts payable 600 23 2700 Cash Accounts receivable 2700 26 No journal entry required (Click to select) 26 4600 Salaries expense Cash 4600 27 600 Accounts payable Cash 600 28 2700 Dividends Dividends payable 2700 29 No journal entry required (Click to select) 29 8760 Unexpired insurance Cash 8760 31 700 Utilities expense Cash 700 31 Cash Accounts receivable Rental fees earned 16,600 4,300 20900 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.) General Journal Date Dec. 31 Debit 3600 Credit Rent expense Prepaid rent 3600 31 275 Interest expense Interest payable 275 31 2000 Depreciation expense Accumulated depreciation: Rental equip. 2000 31 900 Office supplies expense Office supplies 900 31 4500 Unearned rental fees Rental fees earned 4500 31 1620 Accounts receivable Rental fees earned 1620 31 1500 Salaries expense Salaries payable 1500 31 14601 Income taxes expense Income taxes payable 14601 Prepare closing entries and post to ledger accounts. (Do not round intermediate calculations. Omit the "S" sign in your response.) Credit Date Dec. 31 General Journal Rent fees earned Income summary Debit 45620 45620 33371 31 Income summary Salaries expense Maintenance expense Utilities expense Rent expense Interest expense Office supplies expense Depreciation expense Income taxes expense 10,700 600 700 3,600 270 900 2,000 14,601 12249 31 Income summary Retained earnings 12249 2700 31 Retained earnings Dividends 2700 2. value: 25.00 points 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 "S" sign in your response.) GENERAL LEDGER Cash Credit Date Dec. Debit 270000 1 137000 10800 9000 4600 Balance 270000 133000 122200 131200 126600 139400 142100 137500 136900 128140 144740 12800 2700 4600 600 8760 16600 Accounts Receivable Credit Date Dec. 15 Debit 5800 2700 Balance 5800 3100 3800 8100 700 4300 Date Prepaid Rent Credit Balance Dec. 1 Debit 10800 4300 Debit Unexpired Insurance Credit Balance Date Dec. 29 Debit Office Supplies Credit Balance Date Dec. 4 Rental Equipment Credit Debit Balance Date Dec. 1 Date Accumulated Depreciation: Rental Equipment Debit Credit Balance Dec. 31 Debit Notes Payable Credit Balance Date Dec. 1 Debit Accounts Payable Credit Balance Date Dec. 4 Interest Payable Credit Debit Balance Date Dec. 31 Salaries Payable Credit Debit Balance Date Dec. 31 Debit Interest Payable Credit Balance Date Dec. 31 Debit Salaries Payable Credit Balance Date Dec. 31 Dividends Payable Credit Debit Balance Date Dec. 28 Debit Unearned Rental Fees Credit Balance Date Dec. 8 31 Debit Income Taxes Payable Credit Balance Date Dec. 31 Debit Share Capital Credit Balance Date Dec. 1 Retained Earnings Credit Debit Balance Date Dec. 31 31 Dividends Credit Debit Balance Date Dec. 28 31 Debit Income Summary Credit Balance Date Dec. 31 Debit Rental Fees Earned Credit Balance Date Dec. 15 Debit Salaries Expense Credit Balance Date Dec. 12 Maintenance Expense Credit Debit Balance Date Dec. 17 30 Debit Utilities Expense Credit Balance Date Dec. 31 31 Rent Expense Credit Debit Balance Date Dec. 31 Office Supplies Expense Credit Debit Balance Date Dec. 31 31 Debit Depreciation Expense Credit Balance Date Dec. 31 31 Debit Interest Expense Credit 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 "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) (Click to select) 4. 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 "S" 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 5. value: 10.00 points 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 "S" 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 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) Totals