Required information [The following information applies 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-lt, 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 John and Patty oriver 27,000 new shares in exchange for a total of $270, e00 cash. bec. 1 Purchased for $201,600 all of the equipment formerly owned by Rent-It. Paid $139,000 cash and issued a 1-year note payable for $62,600. The note, plus all 12 months of accrued interest, are due Novenber 30 , Year 2. bec. 1 Paid $9,900 to Shapiro Realty as three months' advance rent on the rental yard and office fornerly occupied by Rent-1t. Dec. 4 Purchased office supplies on account fron Modefn office Co., 51,900 . Paynent due in 30 days, (These supplies are expected to last for several months; debit the office Supplies asset account.) Dec. Received $8,960 cash as advance payment on equipsent rental fron McNaber Construction Company. (Credit Unearned Rental Fees.) Dec.12 Paid salaries of $4,300 for the first two weeks in Decenber. Dec.15 Excluding the McNaner advance, equipnent rental fees earned during the first 15 days of Decenber anounted to $18,600, of which $12,600 was received in cash. Dec, 17 Purchased on account tron Earth Movers, Inc., $600 in parts needed to perform basic maintenance on a rental tractor. Paywent is due in 10 days. Dec, 23 Collected $2,460 of the accounts receivable recorded on Decenber 15 . Dec.26 Rented a backhoe to Mission Landscaping at a price of $320 per day, to be paid when the backhoe is returned. Mission Landscaping expects to keep the backhoe for about two or three weeks. Dec. 26 Paid biweekly salaries, $4,300. Dec.27 Paid the account payabte to Earth Movers, Inc., $60e. Dec.28 Declared a dividend of 10 cents per share, payable on January 15, Year 2. Dec.29 Susquehanna Equipnent Rentals was named, atong with Mission Landscaping and Coltier Construction, as a co-defendant in a $23,000 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 Decenber 26, Davenport had climbed the fence to play on parked construction equipment. White playing on the backhoe, he fetl and broke his arm. The extent of the company's legat and financiat responsibility for this accident, if any, cannot be deternined at this tine. (Notez This event does not require a journal entry at this tine, but may require disclosure in notes acconpanying the statements.) Dec.29 Purchased a 12 -wonth public liabitity insurance policy for $9,240. This policy protects the company against liability for injuries and property danage caused by its equipment. However, the poticy 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 from universat utilities for the month of Decenber, $690. Payment is due in 30 days. Dec.31 Equipment rentat fees earned during the second hatf of Decenber anounted to $20, 900 , of which $16, 00e was received in cash. Data 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 period of eight years. Any salvage value at the end of its useful life is expected to be negligibie and immaterial. d. Office supplies on hand at December 31 are estimated at $640. e. During December, the company earned $4,400 of the rental fees poid in advance by McNamer Construction Company on December 8 . f. 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 $1,600 at monthend. 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 Changes in Equity for the year ended December 31. (Round your final answers to the nearest whole dollar.) Prepare a statement of Changes in Equity for the year ended December 31, (Round your final answers to the nearest whole dollar.)