On 1 December 2013. John and Pony 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 Renton equipment rental company that was going out of business. The newly formed company uses the following accounts Cash AM re S. The corporation performs adjusting entries monthly Cloting entries are performed annually on 31 December. During December the corporation entered into the following transactions Det Issued to John and Potty Driver 20,000 new shares in exchange for a total of $200.000 cash De Purchased for $240.000 af of the equipment formerly owned by Rent-it Paid $137,000 cash and issued a oneryear note payable for $103.000. The notes, plus all 12 months of accrued intereste due 30 November 2013 De Paid S11700 to Shapiro Realty as three months advancement on the rental yard and office formerly occupied by Rent It Be Purchased office supplies on account from Modern Office Co. $1900. Payment due in 30 days (These supplies are expected to last for several months. debit the Office Supplies asset account) the Received $8.500 cash as advance payment on equipment rental from McNomer Construction Company Credit Unearned Rental Fees! Poid selles for the first two weeks in December, 54.700 De Excluding the McNamer advance equipment rental fees cared during the first 15 days of December amounted to $18.100, of which $12.600 was received in cash Purchased on account from Earth Moves Limited, S1000 parts needed to repair a rental tractor Debit an expense account) Payment is due in 10 days. Dt. Collected $2.500 of the accounts receivable recorded on 15 December Rented a backhoe to Mission Landscaping at a price of $310 per day to be paid when the backhoe is returned Mission Landscaping expects to keep the backhoe for about two of three weeks. But Paid biweekly salaries, 54700 Det Paid the account payable to Earth Movers Limited $1000 **Declared a video of 10 cents per share payable on 15 January 2014 De Susquehanna Equipment Rentals was named along with Mission Landscaping and Collier Construction as a co defendant in a $22.000 tawsuit filed on behar 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 mis time, but may require disclosure in nates accompanying the statements) Purchased 12 month publicability insurance policy for $9.360 This policy protects the company against liability for injuries and property demage 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 Equipment rental fees earned during the second half of December amounted to $20,200, of which $15,700 was received in cash. Data for Adjusting Entries * The advance payment of rent on 1 December covered a period of three months. D. The annual interest rate on the note payable to Rent-It is 6 percent 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. During December, the company earned $3,900 of the rental fees paid in advance by McNamer Construction Co.on 8 December. As of 31 December, six days' rent on the backhoe rented to Mission Landscaping on 26 December has been earned. Salaries earned by employees since the last payroll date (26 December) amounted to $1,200 at month-end. It is estimated that the company is subject to an income tax rate of 40 percent of profit before income taxes (total revenue minus all expenses other than income taxes). These taxes will be payable in 2014. Prepare closing entries and post to ledger accounts. (Do not round intermediate calculations. Omit the "$" sign in your response.) Debit Credit Date General Journal Dec. 31 Rent fees earned (Click to select) o 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) o o 31 (Click to select) (Click to select) 2 25.00 Post the entries into the following ledger accounts (Record the transactions in the given order. Leave no cells blank.be certain to enter "o" wherever required. Omit the sign in your GENERAL LEDGER Cash Acours Receivable Preoald Rent Unexpired Office Supplies Rental Equipment Accumulated Depreciation Rental Equipment Notos Payable Accounts Payable Interest Payable 5. 10.00 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 abilities in order of their liquidity. Omit the "S" sign in your response) SUSQUEHANNA EQUIPMENT RENTALS Statement of financial position December 31, 2013 Aste FOR TORRE het wy Dick Share TOR 03 6. 5.00 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 losing Trial Balance December 31, 2013 fico IGRE FONA