Required Informetion [The following information applles to the questions dlsplayed 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 immedlately 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 entrles monthly. Closing entrles are performed annually on December 31. Durlng December of Its first year of operations, the corporation entered Into the following transactions. Dec. 1 Issued to John and Patty oriver 25,669 new shares in exchange for a total of $259,609 cash. Dec. 1 Purchased for $249,690 all of the equipment formerly armed by Rent-It. Paid $131,669 cash and issued a 1-year note payable for $118, 600. The note, plus all 12 months of accrued interest, are due novenber 3 , Year 2. Dec. I Paid $19, ze to Shapiro Realty as three months' advance rent on the rental yard and office formerly occupied by Rent-It. Dec. 4 Purchased office supplies on account from ivdern office 02, $1, 20e. Payment due in 39 days. (These supplies are expected to last for several morths; debit the office supplies asset acoount.) Dec. B Received $8,260 cash as advance payment on equipment rental from inkamer Construction Company. (Credit Unearned Rental fees.) Dec.12 Paid salaries of $5,200 for the first two weeks in Decenter. Dec. 15 Excluding the Mckamer advance, equipmert rental fees earned during the first 15 days of oecenter amburted to $18, 20e, of which $12, gee was received in cash. Dec. F Purchased on account from Earth wovers, Inc., \$we in parts needed to perform basic maintenance on a rental tractor. Payment is due in 19 days. Dec.23 collected $2, 29e of the accounts receivable recorded on Decenber 15 . Dec.26 Rented a backhoe to Mission Landscaping at a price of \$280 per day, to be paid when the backhoe is returned. Mission Landscaping expects to keep the backho for about two or three weeks. Dec.26 Paid biveekly salaries, $5, 200 . Der.27 Paid the account payable to Earth Movers, Inc., \$2ee. Dec.26 declared a dividend of 19 cents per share, payable on January 15, Year 2. Dec.zo Susquehanna Equipment Rertals was named, along with Mission Landscaping and collier construction, as a c-defendant in a \$\$3,6ee lawsuit filed on behalf of kevin Davenport. Wission Landscaping had left the rented backhoe in a fenced construction site awned by collier construction. After working hours on December 26, Davenport had climbed the fence to play on parked construction equipment. Hhile playing on the backhoe, he fell and broke his arm. The extent of the company's leqal and financial responsibility for this accident, if any, cannot be determined at this time. (note: This event does not require a journal entry at this time, but may require disclosure in notes accompanying the statements.) Dec.z2 Purchased a 12-morth public liability insurance policy for 9,6ee. This policy protects the company ainat liability for injuries and property damege caused by its equipment. Havever, the policy poes into effect on January 1 , Year 2 , and affords mo uerze for the injuries sustained by kevin Davenport on December 26 . Der.31 received a bill from Universal utilities for the morth of Decenber, \$\$es. Payment is due in 39 days. Dec.31 Equipment rental fees earned during the second half of Decenter amounted to $20,560, of which $16,300 was received in cash. Deta for Ac]usting Entrles, In Year 1 a. The advance payment of rent on December 1 covered a perlod of three months. b. The annual interest rate on the note payable to Rent-It Is 6 percent. c. The rental equipment is belng depreclated by the stralght-Inne method over a perlod of elght years. Amy salvage value at the end of Its useful Iffe Is expected to be negliggble and Immaterlal. d. Office supplies on hand at December 31 are estimated at $670. e. During December, the company earned $4,100 of the rental fees pald in advance by McNamer Construction Company on December 8. f. As of December 31 . slx days' rent on the backhoe rented to MIssion Landscaping on December 26 has been earned. g. Salarles earned by employees since the last payroll date (December 26) amounted to $1,100 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 itotal revenue minus all expenses other than income taxes j. These taxes will be payable in Year 2. Prepare an Income statement for the year ended December 31. (Round your final answers to the nearest whole doller.) SUSQUEHANNA EQUIPMENT RENTALS Income Statement For the Year Ended December 31, Year 1 Revenue: Expenses