Saved Dec. 1 Issued to John and Patty Driver 24,000 shares of capital stock in exchange for a total of $240,000 cash Dec. 1 Purchased for $211,200 all of the equipment formerly owned by Rent-It. Paid $136,000 cash and issued a 1-year note payable for $75,200. The note, plus al1 12 months of accrued interest, are due November 30, Year 2. Dec. 1 Paid $9,900 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 Modern office co.,$1,500. Payment due in 30 days. (These supplies are expected to last for several months; debit the office Supplies asset account.) Dec. 8 Received $8,600 cash as advance payment on equipment rental from McNamer Construction Company. (Credit Unearned Rental Fees.) Dec.12 Paid salaries for the first two weeks in December, $4,900. Dec.15 Excluding the McNamer advance, equipment rental fees earned during the first 15 days of December amounted to $18,400, of which $12,400 was received in cash. Dec. 17 Purchased on account from Earth Movers, Inc, $600 in parts needed to repair a rental tractor. (Debit an expense account.) Payment is due in 10 days. Dec.23 Collected $2,400 of the accounts receivable recorded on December 15 Dec.26 Rented a backhoe to Mission Landscaping at a price of $350 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, $4,900. Dec.27 Paid the account payable to Earth Movers, Inc., $600 Dec.28 Declared a dividend of 10 cents per share, payable on January 15, Year 2. Dec.29 Susquehanna Equipment Rentals was named, along with Mission Landscaping and Collier construction, as a co-defendant in a $26,000 1awsuit filed on behalf of Kevin Davenport. Mission Landscaping had left the rented backhoe in a fenced construction site owned by Collier Construction. After December 26, Davenport had climbed the fence to play on parked construction equipment. While playing rking hours on the backhoe, he fell and broke his arm. The extent of the company' s legal and financiai responsibility for this accident, if any, cannot be determined at this time. (Notei This event does not require a journal entry at this time, but may requ re disclosure in notes accompanying the statements.) Dec.29 Purchased a 12-month publie liability insurance policy for $9,480. This policy protects the company against liability for injuries and property damage caused by its equipment. However, the policy goes into effect on January 1, Year 2, and affords no coverage for the injuries sustained by Kevirn Davenport on December 26 Dec.31 Received a bill from Universal Utilities for the month of December, $610. Payment is due in 30 days Dec.31 Equipment rental fees earned during the second half of December amounted to $20,900, of which $16,100 was received in cash Data for Adjusting Entries 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. d. Office supplies on hand at December 31 are estimated at $640. e. During December, the company earned $4,500 of the rental fees pald 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. Saved Dec. 1 Issued to John and Patty Driver 24,000 shares of capital stock in exchange for a total of $240,000 cash Dec. 1 Purchased for $211,200 all of the equipment formerly owned by Rent-It. Paid $136,000 cash and issued a 1-year note payable for $75,200. The note, plus al1 12 months of accrued interest, are due November 30, Year 2. Dec. 1 Paid $9,900 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 Modern office co.,$1,500. Payment due in 30 days. (These supplies are expected to last for several months; debit the office Supplies asset account.) Dec. 8 Received $8,600 cash as advance payment on equipment rental from McNamer Construction Company. (Credit Unearned Rental Fees.) Dec.12 Paid salaries for the first two weeks in December, $4,900. Dec.15 Excluding the McNamer advance, equipment rental fees earned during the first 15 days of December amounted to $18,400, of which $12,400 was received in cash. Dec. 17 Purchased on account from Earth Movers, Inc, $600 in parts needed to repair a rental tractor. (Debit an expense account.) Payment is due in 10 days. Dec.23 Collected $2,400 of the accounts receivable recorded on December 15 Dec.26 Rented a backhoe to Mission Landscaping at a price of $350 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, $4,900. Dec.27 Paid the account payable to Earth Movers, Inc., $600 Dec.28 Declared a dividend of 10 cents per share, payable on January 15, Year 2. Dec.29 Susquehanna Equipment Rentals was named, along with Mission Landscaping and Collier construction, as a co-defendant in a $26,000 1awsuit filed on behalf of Kevin Davenport. Mission Landscaping had left the rented backhoe in a fenced construction site owned by Collier Construction. After December 26, Davenport had climbed the fence to play on parked construction equipment. While playing rking hours on the backhoe, he fell and broke his arm. The extent of the company' s legal and financiai responsibility for this accident, if any, cannot be determined at this time. (Notei This event does not require a journal entry at this time, but may requ re disclosure in notes accompanying the statements.) Dec.29 Purchased a 12-month publie liability insurance policy for $9,480. This policy protects the company against liability for injuries and property damage caused by its equipment. However, the policy goes into effect on January 1, Year 2, and affords no coverage for the injuries sustained by Kevirn Davenport on December 26 Dec.31 Received a bill from Universal Utilities for the month of December, $610. Payment is due in 30 days Dec.31 Equipment rental fees earned during the second half of December amounted to $20,900, of which $16,100 was received in cash Data for Adjusting Entries 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. d. Office supplies on hand at December 31 are estimated at $640. e. During December, the company earned $4,500 of the rental fees pald 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