The corporation perlorms adjusting entries monthy. Cosing entses are performed amally on December 3t. During December of its first year of eperotions, the corporation entered ints the foloming transactions. Dec. 1 Issued to John and Patty Driver 26,ee0 nes shares in exchange for a total of $260,000 cash. Dec. I Purchased for $201,600 all of the equipnent formerly owned by Rent-It. Paid $137,000 cash and issued a 1-year note payable for 564,669 . The note. plus alt 12 nonths of acerued interest, are due Novenber 39 , Year Dec. 1 Paid $9, 0ee 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,$1,690. Paynent due in 30 days. (These supplies are expected to last for severat months; debit the office supplies asset acceunt. 1 Dec, 8 Received $8,10 e cash as advance paynent on equiphent rental from MeNaner Construction Conpany. (Credit Unearmed Rental fees.) Dec. 12 Paid salaries of 54,9ee for the first two weeks in Decenber. Dec. 15 Excluding the Nolaner advance, equipnent rental fees earned during the first 15 days of Decenber anounted to $19,0ee, of which $12,120 was received in cash. Dec.17 Purchased on account from Earth Movers. Inc. 550 in parts needed to perform basic maintenance on a rentat tractor. Payment is due in 10 days. Dec, 23 Collected $2,560 of the accounts receivabte recorded on Decenber 15 . Dec. 26 Rented a backhoe to Mission Landscaping at a price of s3ee per day, to be paid when the backhoe is returned. Kission landscaping expects to keep the backhoe for about two or three weeks. Dec.26 Paid biweekty salaries, $4,900. Dec.27 Paid the account payable to Earth Movers, Inc, ssee. Dec.28 peclared a dividend of 18 cents per share, payable on January 15, Year Dec.29 Susquehansa Equipnent Rentals was naned, aleng with Mission Landscaping and Collier Construction, as a co-defendant in a 526 , e0e 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 clinbed the fence to play on parked construction equipment, While playing on the backhoe, he felt and broke his arn. The extent of the conpany's legal and financial respensibility for this accident, if any, cannot be determined at this tine. (Note: This event does not require a journat entry at this tine, but nay require disclosure in notes accoepanying the statements.) Dec.29 Purchased a 12 -month public liability insurance policy for $8,522. This policy protects the company against Liability for injuries and property danage caused by its equipment. However, the policy goes into effect on January 1, Year 2, and affords no coverage for the injuries sustained by Kevin Davenport on Decenber 25. Dec,31 Received a bill from Universal Utilities for the nonth of Decenber, $660. Paynent is due in 39 days. Dec.31 Equipment rental fees earned during the second half of Decenber amounted to $20,660, of which $16, 0e was received in cash. Data for Adjusting Entries in Vear 1 a. The actvance payment of rent on December 1 covered a peniod of three monthe. b. The annual interest tate on the note payable to Pene it is 6 percent. c. The rental equipment is being deptecioted by the streight-line method over a peiod of eight years. Any salvage volue at the end of its useful life is expected to be negligitie and immaterial d. Cfice supplies on hand at Decentber 31 are essmaled at $690. e. Dunng Decembec, the compary eamed 54.400 of the rental fees paid in advasce by McNamer Construction Compary on December 8. f. As of December 3t six days' rent on the backhoe rented to Mrson tandscaging on December 26 has been earned. g. Salaries earned by employeer since the last peyroll date (December 26 amounted to $2.000 at monthend h. It is estimated that the company is subject to an income tax rate of 30 percent of proft before income taxes ftotal revenue minus all expenses other than income taxes. These trxes will be payable in Yoar 2. repare an atter ciesing trai balance as of December 31. Phound yeur final annewers to the nearest whole dollac) The corporation perlorms adjusting entries monthy. Cosing entses are performed amally on December 3t. During December of its first year of eperotions, the corporation entered ints the foloming transactions. Dec. 1 Issued to John and Patty Driver 26,ee0 nes shares in exchange for a total of $260,000 cash. Dec. I Purchased for $201,600 all of the equipnent formerly owned by Rent-It. Paid $137,000 cash and issued a 1-year note payable for 564,669 . The note. plus alt 12 nonths of acerued interest, are due Novenber 39 , Year Dec. 1 Paid $9, 0ee 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,$1,690. Paynent due in 30 days. (These supplies are expected to last for severat months; debit the office supplies asset acceunt. 1 Dec, 8 Received $8,10 e cash as advance paynent on equiphent rental from MeNaner Construction Conpany. (Credit Unearmed Rental fees.) Dec. 12 Paid salaries of 54,9ee for the first two weeks in Decenber. Dec. 15 Excluding the Nolaner advance, equipnent rental fees earned during the first 15 days of Decenber anounted to $19,0ee, of which $12,120 was received in cash. Dec.17 Purchased on account from Earth Movers. Inc. 550 in parts needed to perform basic maintenance on a rentat tractor. Payment is due in 10 days. Dec, 23 Collected $2,560 of the accounts receivabte recorded on Decenber 15 . Dec. 26 Rented a backhoe to Mission Landscaping at a price of s3ee per day, to be paid when the backhoe is returned. Kission landscaping expects to keep the backhoe for about two or three weeks. Dec.26 Paid biweekty salaries, $4,900. Dec.27 Paid the account payable to Earth Movers, Inc, ssee. Dec.28 peclared a dividend of 18 cents per share, payable on January 15, Year Dec.29 Susquehansa Equipnent Rentals was naned, aleng with Mission Landscaping and Collier Construction, as a co-defendant in a 526 , e0e 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 clinbed the fence to play on parked construction equipment, While playing on the backhoe, he felt and broke his arn. The extent of the conpany's legal and financial respensibility for this accident, if any, cannot be determined at this tine. (Note: This event does not require a journat entry at this tine, but nay require disclosure in notes accoepanying the statements.) Dec.29 Purchased a 12 -month public liability insurance policy for $8,522. This policy protects the company against Liability for injuries and property danage caused by its equipment. However, the policy goes into effect on January 1, Year 2, and affords no coverage for the injuries sustained by Kevin Davenport on Decenber 25. Dec,31 Received a bill from Universal Utilities for the nonth of Decenber, $660. Paynent is due in 39 days. Dec.31 Equipment rental fees earned during the second half of Decenber amounted to $20,660, of which $16, 0e was received in cash. Data for Adjusting Entries in Vear 1 a. The actvance payment of rent on December 1 covered a peniod of three monthe. b. The annual interest tate on the note payable to Pene it is 6 percent. c. The rental equipment is being deptecioted by the streight-line method over a peiod of eight years. Any salvage volue at the end of its useful life is expected to be negligitie and immaterial d. Cfice supplies on hand at Decentber 31 are essmaled at $690. e. Dunng Decembec, the compary eamed 54.400 of the rental fees paid in advasce by McNamer Construction Compary on December 8. f. As of December 3t six days' rent on the backhoe rented to Mrson tandscaging on December 26 has been earned. g. Salaries earned by employeer since the last peyroll date (December 26 amounted to $2.000 at monthend h. It is estimated that the company is subject to an income tax rate of 30 percent of proft before income taxes ftotal revenue minus all expenses other than income taxes. These trxes will be payable in Yoar 2. repare an atter ciesing trai balance as of December 31. Phound yeur final annewers to the nearest whole dollac)