[The following information applies to the questions displayed 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 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. 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. Det. IIssued to John and Patty Driver 28,000 new shares in exchange for a total of $280,000 cash. 0ec. IPurchased for $192,000 all of the equipment formerty owned by Rent It. Paid $133,000 cash and issued a tyear note payable for $59,000. The note, plus all 12 months of acerued interest, are due November 30 , Year 2 an. "Paid $9,600 to Shapiro Realty as three months' advance rent on the rental yard and oflice formerly occupied by Rentelt. Dece. Purchased office supplies on account from Modern Office Co. 51.400. Payment due in 30 doys, (These supplies are expected to last for several months; debit the Office Supplies asset eccount.) - Received $8.200 cash as advance poyment on equigenent rental from MeNamer Construction Company. (Credit Unearned Rental Fees) Dec. 12 Paid salaries of $5,000 for the frst two weeks in Decembet. aec. IS Excluding the McNkamer advance, equipment rental fees eamed duning the first 15 days of December amounted to $18,200, of which $12,300 was receved in cash. anc. "Purchased on account from Earth Movers, Inc. $600 in parts needed to perform basic maintenance on a rental tractoc. Payment is due in 10 days. aec.23 Collected $2.300 of the accounts receivable recorded on December 15 Der.26 Rented a bockhoe to Mission Landscaping at a price of $310 per day, to be paid when the bockhoe is returned. Mission Landscaping expects to keep the beckhoe for about two or three weeks. anc 2 P Paid biweekly salaries, $5,000 ene x Paid the account payable to Earth Mowers, inc, $600. anc 36 Declared a dividend of 10 cents per 5hare, payable on January 15 , Year 2 . aw 30 Susquehanna Equipment Rentals was named, along with Mission Landscoping and Coller Construction, as a co-defendant in a $29,000 tawsul 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 responsbity for this aceident, 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) Decis Purchased a 12 -month public liability insurance policy for $9.480. This policy protects the company against liability for injuries and property domage caused by its equipment. However, the policy goes into effect on lanuary 1 , Year 2 , and affords no coverage for the injuries sustained by Kevin Davenport on December 26 . Bex. an Recelved a bill from Universal Utilibes for the month of December, 5670 . Payment is due in 30 days. Dec. 3Equpment rental fees earned during the second haif of December amounted to $20,400. of which $15,900 was received in cash. Data for Adjusting Entries in Year 1 a. The advance paytmeat of reon on Decemberi covoied a pedied of thec menths. Data for Adjusting Entries in Year 1 a. The advance payment of rent on December 1 covered a period of three months b. The annuat 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. Any salvage value at the end of its useful iffe is expected to be negligible and immaterial. d. Office supplies on hand at December 31 are estimated at $650. e. During December, the company earned $4,700 of the rental fees paid in advance by McNamer Construction Company on December 8 . t. As of December 31, six days' rent on the backhoe rented to Mission Landscaping on December 26 has been earned. 9. Salaries earned by employees since the last payroll date (December 26) amounted to $1,300 at month-end. h. It is estimated that the company is subject to an income tax rate of 30 percent of protit before income taxes ftotal revenue minus all expenses other than income taxes). These taxes will be payable in Year 2. Post the entries into the following ledger accounts. (Enter the transaction in chronological order for each of the Ledger accounts. Round your final answers to the nearest whole dollar.)