On December 1, year one, John and Patty Driver formed a corporation called Susquehanna Equipment Rentals. The new corporation was able to begin operations immediately by purchasing the assests and taking over the location of Rent-it, and equipment rental compnay 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 Taxex Payable, Captial Stock, 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 December 31. During December, the corporation entered into the following transactions.

DEC. 1: Issued to John and Patty Driver 24,000 shares of capital stock in exchange for a total of $240,000 cash.

DEC. 1: Purchased for $192,000 all of the equipment formerly owned by Rent-It. Paid $132,000 cash and issued a 1-year note payable for $60,000. The note, plus all 12 months of accured interest, are due November 30, year 2.

DEC. 1: Paid $9,300 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., $1,300. 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, $4,400.

DEC. 15: Excluding the McNamer advance, equipment rental fees earned during the first 15 days of December amounted to $18,600, of which $12,600 was received in cash.

DEC. 17: Purchased on account from Earth Movers, Inc., $800 in parts needed to repair a rental tractor. (Debit an expense account.) Payment is due in 10 days.

DEC. 23: Collected $2,400 of the accounts receivable recorded on December 15.

DEC. 26: Rented a backhoe to Mission Landscaping at a price of $260 per day, to be paid when the backhoe is returned. Mission Landscaping expects to keep the backhow for about two or three weeks.

DEC. 26: Paid biweekly salaries, $4,400.

DEC. 27: Paid the account payable to Earth Movers, Inc., $800.

DEC. 28: Declared a dividend of 10 cents per share, payable on January 15, year 2.

DEC. 29: Susquehanna Equipment Rentals was named, along with Mission Landscaping and Collier Construction, as a co-defendant in a $22,000 lawsuit filed on behalf of Kevin Davenport. Mission Landscaping had left the rented backhow in a fenced construction site owned by Collier Construction. After working hours on December 26, 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 polict for $8,800. This policy protects the compnay against liability for injuried and propert damage caused by its equipment. However, the policy goes into effect on January 1, year 2, and affords no coverage for the injuries to Kevin Davenport on December 26.

DEC. 31: Received a bill from Universal Utilities for the month of December, $670. Payment is due in 30 days.

DEC. 31: Equipment rental fees earned during the second half of December amounted to $20,800, of which $15,900 was received in cash.

QUESTION 1: Prepare a balance sheet (in report form) as of December 31 (amounts to be deducted should be indicated by a minus sign. Round your final answers to the nearest whole dollar.

QUESTION 2: Prepare an after-closed trial balance as of December 31. (Round your final answers to the nearest whole dollar.)