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.)

Required Information [The following information applies to the questions disployed below.] On December 1, Year 1, John and Patty Driver formed o corporation called Susquehanno Equipment Rentals. The new corporation was able to begin operstions immedistely by purchasing the assets and toking over the locstion of Rent-It, on equipment rental compony thet wos going out of business. The newly formed compony uses the following occounts. The corporation performs adjusting entries monthly. Closing entries are performed snnuslly on December 31. During December of its first year of operations, the corporstion entered into the following tronsactions. Dec. 1 Issucd to John and Patty Driver 21, eea shares of capital stock in exchange for a total of \$21e,eee cash. Dec. 1 Purchased for $192, eae all of the equipment fornerly ouned by Rent-It. Paid $131, eee cash and issued a 1 -year Dec. 1 Paid \$9,30e to shapiro Realty as three months advance rent on the rental yard and office formerly occupied by Rent-1t. Dec. 4 Purchased office supplies on account fron Modern office Co., \$1,30e. Paynent due in 38 days. (These supplies arc expected to last for several nonths; debit the office supplies asset account.) Dec. 8 Received $8,408 cash as advance payment on equipment rental from McNamer Construction Company. (Credit Unearned Rental Fecs.) Dec.12 Paid salaries of $5,180 for the first two weeks in Decerber. Dec.15 Excluding the McNamer advance, equipnent rental fecs earned during the first 15 days of December amounted to $18,700, of which $12,100 was received in cash. Dec.17 Purchased on account from Earth Movers, Inc., \$8ge in parts necded to perform basic maintenance on a rental tractor. Payment is due in 18 days. Dec. 23 Collected $2,2 ef of the accounts receivable recorded on December 15 . Dec.26 Rented a backhoe to Mission Landscaping at a price of $308 per day, to be paid when the backhoe is returned. Mission Landscaping expects to kecp the backhoe for about two or three wecks. Dec. 26 Paid biwckly salaries, \$5,100. Dec.27 Paid the account payabie to Earth Mavers, Inc., \$89e. Dec.28 Declared a dividend of 10 cents per share, payable on January 15, Year 2. Dec.29 Susquchanna Equipment Rentals was naned, slong with Mission Landscaping and collicr Construction, as a codefendant in a \$28, eae lawsuit filed on behalf of Kevin Davenport. Mission Landscaping had left the rented backhoe in a fenced construction site owned by collier construction. After working hours on Decerber 26 , Davenport had climbed the fence to play on parked construction equipnent. While playing on the backhoe, he fell and broke his arn. The extent of the compony's legal and financial responsibility for this accident, if any, cannot be determined at this tine. (Mote: This event does not require a journal entry at this tine, but may 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 liability for injuries and property danage caused by its equipnent. However, the policy goes into effect on January 1, Year 2, and affords no coverage for the injuries sustained by Kevin Davenport on Decerber 26. Dec.31 Received a bill fron Universal Utilities for the nonth of Decenber, \$6ge. Paynent is due in 39 days. Dec.31 Equipment rental fees earned during the second half of Decenber amounted to $2,5e0, of which $16, eee was received in cash. Data for Adjusting Entrles In Year 1 a. The sovince poyment of rent on December 1 covered s period of three months. b. The onnusl interest rote on the note poysble to Rent-lt is 6 percent. c. The rental equipment is being deprecioted by the stroight-line method over a period of eight years. Any solvoge value at the end of its useful life is expected to be negligible and immoterial. d. Office supplies on hand at December 31 are estimated at $610. e. During December, the compsny esrned $4,400 of the rental fees poid in odvonce by McNamer Construction Compony on December 8. f. As of December 31, six doys' rent on the bockhoe rented to Mission Londscoping on December 26 hos been earned. g. Salaries earned by employees since the last poyroll date (December 26 ) amounted to $1,800 ot month-end. h. It is estimated that the compony is subject to 0 combined federal and state income tox rate of 40 percent of income before income toxes (total revenue minus all expenses other thon income toxes). These toxes will be poyoble in Year 2. SUSQUEHANNA EQUIPMENT RENTALS Balance Sheet December 31, Year 1 Assets