Prepare a statement of retained earnings for the year ended December 31. (Round your final answers to the nearest whole dollar.)

Required Information [The following informotion spplies to the questions disployed below.] On December 1, Year 1, John and Patty Driver formed o corporstion called Susquehanna Equipment Rentals. The new corporation was oble to begin operations immedistely by purchosing the ossets and taking over the location of Rent-lt, on equipment rental compony that was going out of business. The newly formed compony uses the following occounts. The corporation performs sdjusting entries monthly. Closing entries are performed annuslly on December 31. During December of its first year of operations, the corporation entered into the following tronsactions. Dec. 1 Issued 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 owned by Rent-It. Paid $131, eee cash and issucd a 1 -year note payable for $51, eae. The note, plus sll 12 months of accrued interest, are due Novenber 30 , Year 2. Dec. 1 Paid \$9,300 to Shapiro Realty as three months' advance rent on the rental yard and office formerly oceupied by Rent-It. Dec. 4 Purchased office supplies on account from Modern office Co., $1,390. Paynent due in 30 days. (These supplies arc expected to last for several nonths; debit the office supplies asset account.) Dec. 8 Received $8,490 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 carned during the first 15 days of December amounted to $18,790, of which $12,1 ea was received in cash. Dec.17 Purchased on account from Earth Mavers, Inc., \$89e in parts needed to perform basic maintenance on a rental tractor. Paynent is due in 18 days. Dec. 23 collected $2,2 e of the accounts receivable recorded on December 15. Dec.26 Rented a backhoe to Mission Landscaping at a price of \$3ee per day, to be paid when the backhoe is returned. Mission Landscaping expects to kecp the backhoe for about two or three wceks. Dec. 26 Paid biweckly salaries, \$5, 100 . Dec.27 Paid the account payabie to Earth Movers, Inc., $890. Dec.28 Declared a dividend of 19 cents per share, payable on January 15, Year 2. Dec.29 Susquchanna Equipment Rentals was naned, slong with Mission Landscaping and collier 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 arm. The extent of the compony's legal and financial responsibility for this accident, if any, cannot be determined at this tine. (Mote: This cvent 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 Decenber 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 Decerber amounted to $20,580, of which $16, eee was received in cash. Data for Adjusting Entrles In Year 1 a. The odvonce 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 volue at the end of its useful life is expected to be negligible and immaterial. d. Office supplies on hand at December 31 are estimated ot $610. e. During December, the company earned $4,400 of the rental fees poid in odvance by McNamer Construction Company on December 8. f. As of December 31, six dsys' rent on the bockhoe rented to Mission Londscoping on December 26 hos been earned. g. Solsries earned by employees since the last psyroll date (December 26 ) omounted to $1,800 st month-end. h. It is estimsted that the compony is subject to o combined federal and stote income tox rate of 40 percent of income before income toxes (total revenue minus all expenses other than income toxes). These toxes will be poyoble in Year 2. \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ SUSQUEHANNA EQUIPMENT RENTALS } \\ \hline \multicolumn{3}{|c|}{ Statement of Retained Earnings } \\ \hline \multicolumn{3}{|c|}{ For the Year Ended December 31, Year 1} \\ \hline \multicolumn{3}{|l|}{ Retained earnings, December 1, Year 1} \\ \hline Add: Net income & & 15,495 \\ \hline \multicolumn{3}{|l|}{ Less: Dividends } \\ \hline Retained earnings, December 31, Year 1 & $ & 15,495 \\ \hline \end{tabular}