On December 1, Year 1, John and Patty Driver formed a corporatlon called Susquehanna Equipment Rentals. The new corporatlon was able to begin operations Immedlately by purchasing the assets and taking over the locatlon of Rent-lt, an equipment rental compary that was going out of business. The newly formed company uses the following accounts. The corporation performs adjusting entries monthly. Closing entries are performed annually on December 31. During December of its first year of operations, the corporation entered Into the following transactions. Dec. 1 Issued to John and Patty Driver 2, ege shares of capital stock in exchange for a total of $24, ege cash. for \$129, 990 . The note, plus a11 12 months of accrued interest, are due Novenber 30 , Year 2. last for several nonths; debit the office Supplies asset accourt.) Fees. ) Dec. 12 Paid salaries of $6,249 for the flrst two weeks in Decenber. which $14,490 was recelved in cash. is due in 18 days. Dec. 23 Collected $2,489 of the accounts recelvable recorded on December. 15 . Landscapling expects to keep the backhoe for about two or three weeks. Dec. 26 Paid biweekly salaries, $6,240. Dec. 27 paid the account payable to Earth Movers, Inc., $726. Dec. 28 Declared a dividend of 12 cents per share, payable on January 15, Year 2. site owned by Collier Construction. After working hours on Decenber 26, Davenport had climbed the fence to play on parked construction equlpment. While playing on the backhoe, he fell and broke his arm. The extent of the conpany's legal and journal entry at this tine, but may require disclosure in notes accompanying the statements.) no coverage for the injurles sustained by Kevin Davenport on Decenber 26. Dec. 31 Recelved a bil1 from Universal utilities for the month of Decenber, $g40. payment is due in 30 days. Data for Adjusting Entries in Year 1 a. The advance payment of rent on December 1 covered a perlod of three months. b. The annual interest rate on the note payable to Rent-lt is 6 percent. c. The rental equipment is belng depreclated by the straight-Ine method over a perlod of elght years. Any salvage value at the end of Its useful life is expected to be negligible and immaterlal. d. Office supplies on hand at December 31 are estimated at $720. e. During December, the company earned $4,440 of the rental fees pald in advance by McNamer Construction Company on December 8 . f. As of December 31, slx days' rent on the backhoe rented to Mission Landscaping on December 26 has been eamed. g. Salarles eamed by employees since the last payroll date (December 26) amounted to $1,680 at month-end. h. It is estimated that the company is subject to a combined federal and state income tax rate of 40 percent of income before income taxes (total revenue minus all expenses other than Income taxes). These taxes will be payable in Year 2 Answer is not complete. Every journal entry must keep the accounting equation in balance. Prepare the journal entries for each of the transactions (117), entering the debits before the credits. Each transaction will automatically be posted to the General Ledger as soon as you click "Record Entry". Once you have reviewed the results then record the adjusting entries (18-25), and then the closing entries as well (26-29). If no journal entry is required, select "No journal entry required" in the first account field. Use the drop-downs to select the accounts properly included on the income statement. The unadjusted, adjusted, or postclosing balances will appear for each account, based on your selection. balances will appear for each account, based on your selection