On December 1, 2021, George and Myrs started a corporation called Caper Rental Equipment, The now corporation began operations immediately as they were able to purchase assets from a local company called The Rental Place that went out of business. The newly opened business, Caper Rental Equipment sses the following accounts for their operations Cash Accounts Receivable Prepaid Rent Unexpired Insurance Office Supplies Rental Equipment Accumulated Depreciation Rental Equipment Notes Payable Interest Expense Accounts Payable Interest Payable Salaries Payable Dividends Payable Unearned Rental Fees Income Taxes Payable Contributed Capital Retained Earnings ncome Tax Expense Dividends Rental Fees Earned Salaries Expense Maintenance Expense Usities Expense Office Supplies Expense Rent Expense Depreciation Expense Caper Rental Equipment performs adjusting entries monthly Closing entries are performed annually on December 31 During December, the company entered the flowing transactions . December 1eved 20,000 shares of contributed capital in exchange for $200,000 ca December 1 Purchased all of the equipment formerly owned by The Rental Place for $240.000 Paid $140.000 cash and signed year note payable for the balance December 1 Paid $12,000 for three months rent. The rental period begins December 1 and ends February 28 December 4, Purchased office supplies on account for $1,000. Payment is due in 30 days December Received 5,000 cash as an advance payment on equipment rental from le MacDonald for their construction company December 12 Paid Salaries for the first two weeks in December totaling $5,200 December 15" Excluding the December rental, total equipment rentals up to December 15" were $18.000 of which, $12,000 was received in cash and the remainder is an accounts receivable December 17 Purchased 5600 in parts needed to repair equipment (maintenance expense Furchased the parts on account December 23 Colected 52,000 of the accounts receivable reconded on December 15 December 26 Paid biweekly salaries $1,300 December 27 Paid $600 towards an accounts payable balance December 28 Declared a dividend of 10 cents per share, payable on January 15, 2022 December 29 Purchased a 12-month insurance policy for $9.00 They paid cash for the policy and It begins January 1, 2022 and ends December 31, 2022 December 29 Received a utility bill for $100 for the month of December Payment is due in 30 days Additional Data Provided: The advance payment of rent on December 1" covered a period of 3 months (Decem February The rental equipment purchased is being depreciated on a straight-line bas over 8 Office supplies on hand on December 31" total 5600 During December, the company earned $3,700 of the rental fees paid by Joe MacDom December Salaries eamed by the employees from December 26 to December 31 totalled St not be paid until the next pay day January Requirements 1. Prepare journal entries for the December transactions. Descriptions are not required need to prepare adjusting entries in requirement 1 2. Using the additional data provided, prepare the required adjusting journal entries for 3. Prepare an income statement for the year ended December 31, 2021 4. Prepare a statement of retained earnings for the year ended December 31, 2021 3. Prepare a balance sheet as at December 31, 2021