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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$-$It$,$ an equipment rental company that was going out of business. The newly formed company uses the following accounts. Cash,Share Capital,Accounts Receivable,Retained Earnings,Prepaid Rent,Dividends,Unexpired Insurance,Income Summary,Office Supplies,Rental Fees Earned,Rental Equipment,Salaries Expense,Accumulated Depreciation: Rent Equipment,MaintenanceExpense,Notes,Payable,Utilities Expense,Accounts Payable,Rent$$Expense$,$Interest Payable,Office Supplies$$Expense$,$Salaries Payable,Depreciation Expense,Dividends Payable,Interest Expense Unearned Rental Fees,Income Taxes Expense,Income Taxes Payable $.$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$.1$ Issued to John and Patty Driver $21,000$ new shares in exchange for a total of $$210,000$ cash.Dec. $1$ Purchased for $$211,200$ all of the equipment formerly owned by Rent$-$It$.$ Paid $$134,000$ cash and issued a $1-$year note payable for $$77,200.$ The note, plus all $12$ months of accrued interest, are due November $30,$ Year $2.$ Dec. $1$ Paid $$11,700$ to Shapiro Realty as three months$$ advance rent on the rental yard and office formerly occupied by Rent$-$It$.$Dec. $4$ Purchased office supplies on account from Modern Office Co$.,$ $$1,000.$ Payment due in $30$ days. $($These supplies are expected to last for several months; debit the Office Supplies asset account.$)$Dec$.8$ Received $$8,000$ cash as advance payment on equipment rental from McNamer Construction Company. $($Credit Unearned Rental Fees.$)$Dec$.12$ Paid salaries of $$5,100$ for the first two weeks in December.Dec. $15$ Excluding the McNamer advance, equipment rental fees earned during the first$15$ days of December amounted to $$18,400,$ of which $$12,900$ was received in cash.Dec. $17$ Purchased on account from Earth Movers, Inc., $$600$ in parts needed to perform basic maintenance on a rental tractor. Payment is due in $10$ days.Dec. $23$ Collected $$2,300$ of the accounts receivable recorded on December $15.$Dec. $26$ Rented a backhoe to Mission Landscaping at a price of $$310$ 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, $$5,100.$Dec. $27$ Paid the account payable to Earth Movers, Inc., $$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 $$29,000$ lawsuit filed on behalf of Kevin Davenport. Mission Landscaping had left the rented backhoe in a fenced construction site owned by Collier Construction. After working hours on December $26,$ Davenport had climbed the fence to play on parked construction equipment. While playing on the backhoe, he fell and broke his arm. The extent of the company$$s legal 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$.29$ Purchased a $12-$month public liability insurance policy for $$9,360.$ This policy protects the company against liability for injuries and property damage caused by its equipment. However, the policy goes into effect on January $1,$ Year $2,$ and affords no coverage for the injuries sustained by Kevin Davenport on December $26.$ Dec. $31$ Received a bill from Universal Utilities for the month of December, $$620.$ Payment is due in $30$ days.Dec. $31$ Equipment rental fees earned during the second half of December amounted to $$20,800,$ of which $$16,400$ was received in cash. Data for Adjusting Entries in Year $1$The advance payment of rent on December $1$ covered a period of three months.The annual interest rate on the note payable to Rent$-$It is $6$ percent.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 negligible and immaterial.Office supplies on hand at December $31$ are estimated at $$620.$ During December, the company earned $$4,600$ of the rental fees paid in advance by McNamer Construction Company on December $8.$As of December $31,$ six days$$ rent on the backhoe rented to Mission Landscaping on December $26$ has been earned.Salaries earned by employees since the last payroll date $($December $26)$ amounted to $$1,700$ at month$-$end.It is estimated that the company is subject to an income tax rate of $30$ percent of profit before income taxes $($total revenue minus allexpenses other than income taxes$).$ These taxes will be payable in Year $2.1$a jounalize all dec transactions. Do not record adjusting entries at this point. $1$b prepare the necessary adjusting entries for dec. $1$c prepare closing entries and post to ledger accounts