Required Information [The following information opplies to the questions disployed below.] On December 1, Year 1, John ond Potty Driver formed o corporstion colled Susquehonno Equipment Rentals. The new corporation wos oble to begin operstions immedistely by purchssing the ossets and taking over the location 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 annuslly on December 31. During December of its first year of operations, the corporation entered into the following tronsactions. note payable for \$51, eae. The note, plus all 12 months of accrued interest, are due November 38 , Year 2. Rent-It. expected to last for several months; debit the office supplies asset account.) Rental Fcos.) Dec.12 Paid salaries of $5,109 for the first two weeks in Decerber. $18,700, of which $12,100 was reccived in cash. tractor. Payment is due in 18 days. Dec. 23 Collected $2,28 of the accounts receivable recorded on December 15. Mission Landscaping expects to kecp the backhoc for about two or three wceks. Dec. 26 Paid biwcekly salarics, \$5, 198 . Dec. 27 Paid the account payable to Earth Movers, Inc., $890. Dec.28 Declared a dividend of 19 cents per sharc, payable on January 15, Year 2. defendant in a \$28, eae lawsuit filed on behalf of Kevin Davenport. Mission Landscaping had left the rented backhoc in a fenced construction site owned by Collier Construction. After working hours on Decerber 26, and broke his arn. The extent of the company'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 statcments.) liability for injuries and property danage caused by its cquipnent. However, the policy gocs into cffect on January 1, Year 2, and affords no coverage for the injuries sustained by Kevin Davenport on Decerber 26. Dec.31 Reccived a bill fron Universal Utilitics for the nonth of Decenber, $689. Paynent is duc in 39 days. received in cash. Data for Adjusting Entrles In Year 1 a. The odvonce poyment of rent on December 1 covered o period of three months. b. The onnusl interest rate 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 immaterial. d. Office supplies on hand at December 31 are estimated at $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. Salsries earned by employees since the last psyroll date (December 26 ) amounted to $1,800 st month-end. h. It is estimsted that the compony is subject to o 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. \begin{tabular}{|c|c|c|c|c|c|} \hline & No & Date & General Journal & Debit & Credlt \\ \hline & 1 & Dec. 1 & Cash & 210,000 & \\ \hline & & & Capital stock & & 210,000 \\ \hline \multirow[t]{3}{*}{>} & 2 & Dec. 1 & Rental equipment & 192,000 & \\ \hline & & & Cash & & 131,000 \\ \hline & & & Notes payable & & 61,000 \\ \hline \multirow[t]{2}{*}{} & 4 & Dec. 4 & Office supplies & 1,300 & \\ \hline & & & Accounts payable & & 1,300 \\ \hline \multirow[t]{2}{*}{>} & 5 & Dec. 8 & Casch & 8,400 & \\ \hline & & & Unesmed rental fees & & 8,400 \\ \hline \multirow[t]{2}{*}{>} & 6 & Dec. 12 & Salaries expense & 5,100 & \\ \hline & & & Cash & & 5,100 \\ \hline & 7 & Dec. 15 & Cash & 12,100 & \\ \hline & & & Accounts receivable & 6,600 & \\ \hline & & & Rental fees esamed & & 18,700 \\ \hline \multirow[t]{2}{*}{>} & B & Dec. 17 & Maintenance expense & 800 & \\ \hline & & & Accounts payable & & 800 \\ \hline \multirow[t]{2}{*}{>} & 9 & Dec. 23 & Casch & 2,200 & \\ \hline & & & Accounts receivable & & 2,200 \\ \hlinep & 10 & Dec. 26 & No jaumal entry required & & \\ \hline & 11 & Dec. 26 & Salaries expense & 5,100 & \\ \hline & & & Cash & & 5,100 \\ \hline \multirow[t]{2}{*}{>} & 12 & Dec. 27 & Acoounts payable & 800 & \\ \hline & & & Cash & & 800 \\ \hline \multirow[t]{2}{*}{p} & 13 & Dec. 28 & Dividends & 2,100 & \\ \hline & & & Dividends payable & & 2,100 \\ \hline \multirow[t]{2}{*}{>} & 15 & Dec. 29 & Unexpired insurance & 9,120 & \\ \hline & & & Cash & & 9,120 \\ \hline \multirow[t]{2}{*}{p} & 16 & Dec. 31 & Utilities expense & 680 & \\ \hline & & & Accounts payable & & 680 \\ \hline \multirow[t]{3}{*}{>} & 17 & Dec. 31 & Cash & 16,000 & \\ \hline & & & Accounts receivable & 4,500 & \\ \hline & & & Rental fees esmed & & 20,500 \\ \hline \end{tabular} Complete the 10 -column worksheet for the yeor ended December 31. (For accounts where multiple Adjustments are required, combine all debit entrles Into one amount and enter this amount in the debit column of the worksheet. Simllarly, combine all credit entrles Into one amount and enter this amount In the credit column of the worksheet. Round your final answers to the nearest whole dollar.)