please awnser tge following question in the question-awnser and include the ledger accounts in chronological order format ive given thank you very much for your help life saver
(1) Required information 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 24,000 new shares in exchange for a total of $240,000 cash. Dec. 1 Purchased for $259,200 all of the equipment formerly owned by Hent-1t. Paid $149, eeg cash and issued a 1 -year note payable for $119,200. The note, plus all 12 months of accrued interest, are due November 39 , Year 2 . Dec. I Paid $19,8e0 to Shapino Realty as three months' advance rent on the rental yard and office formeriy occupied by Rent-1t. Dec. 4 Purchased office supplies on account from Modern office Co., \$1,480, Payment due in 30 days. (These supplies are expected to last for several months; debit the office Supplies asset account.) Dec. 8 Heceived $,390 cash as advance payment on equipent rental fron McNaner Construction Conpany. (Credit Unearned Hental Fees.) Dec.12 Paid salaries of $5,100 for the first two weeks in Decenber. Dec.15 Excluding the McNaber advance, equipent rental fees earned during the first 15 days of Decenber anounted to $18,400, of which $12,600 was received in cash, Dec.17 Purchased on account from Earth Movers, Inc., $900 in parts needed to perfore basic maintenance on a rental tracton. Paynent is due in 10 days. Dec. 23 Collected $2, 800 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 backhoe for about two or three ireeks. Dec. 26 Paid biveekly salaries, $5,100. Dec. 27 Paid the account payable to Earth Movers, Inc., 5900. Dec.28 Declared a dividend of 10 cents per share, payable on January 15, Year 2. Dee.29 Susquehanna Equipent Mentals was named, along with Mission Landscaping and Collier Construction, as a codefendant in a $30,009 lawsuit filed on behalf of Kevin Davenport. Mission tandscaping had left the rented backhoe in a fenced construction site oumed by Collier Construction. After working hours on Deceaber 26 ; Daverport had climbed the fence to play on parked construction equipment. While playinit on the backhoe, he fell and broke his are. The extent of the company's legal and financial responsibility for this accident, if ary, cannot be detereined at this time. (Noter. This event does not require a journal entry at this time, but aay require disclosure in notes accompanying the statements.) Dec.29 Purchased a 12-month public liability Insurance policy for $9,120. This policy protects the conpany against liablisty for injories and property dasage caused by its equipaent. However, the policy goes into effect on January 1, Year 2, and affords no coverage. for the injurles sustained by Kevin Davenport on December 26. Dec.32 fecelved a bill from Universal utilities for the month of Deceaber, \$6so, Payeent is due in 30 days. Dee.32 teuipent rental fees earned during the second half of Decenber amounted to $20,000, of which $15, 600 was received in cash. Date for Adjusting Entries in Year 1 a. The advance payment of rent on December 1 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 the straight-line method over a perlod of eight 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 $610. e. During December, the company earned $4.300 of the rental fees paid in advance by McNamer Construction Company on December 8. t. As of December 31, six days' rent on the backhoe rented to Mission Landscaping on December 26 has been earned. 9. Salaries earned by employees since the last payroll date (December 26) amounted to $1,900 at month-end. h. It is estimated that the company is subject to an income tax rate of 30 percent of profit before income taxes (total revenue minus all expenses other than income taxes). These taxes will be payable in Year 2 . Prepare a Statement of Financial Position (in report form) as of December 31. (Amounts to be deducted should be indicated by a ninus sign. Round your final answers to the nearest whole dollar.) Required information [The following information applles to the questions displayed below.] On December 1, Year 1, 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-It, an equipment rental company 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. I Issued to Johin and Patty Driver 24,000 new shares in exchange for a total of $248,000 cash. Dec. 1 Purchased for $259,200 all of the equipment formerly owned by Rent-It. Paid $140,000 cash and issued a 1 -year note payable for $119,200. The note, plus a11 12 months of accrued interest, are due Novenber 30 , Year 2 . Dec. I Paid $10, 80e to Shapiro Healty as three months' advance rent on the rental yard and office foraerly occupied by Hnt T+
