[The following information applies to the questions displayed below.) On December 1, Yeart 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 Capital Stock Retained Earnings Didends Income Summary Rental Fees Earned Salaries Expense Cash Accounts Receivable Prepaid Rent Unexpired Insurance Ofice Supplies Rental Equipment Accumulated Depreciation Rental Equipment Notes Payable Accounts Payable Interest Payable Salaries Payable Dividends Payable Unearned Rental Fees Income Taxes Payable Maintenance Expense Utilities Expense Rent Expense Office Supplies Expense Depreciation Expense Interest Expense Income Taxes Expense The corporation performs adjusting entries monthly Closing entries are performed annually on December 31. During December, the corporation entered into the following transactions. Dec. 1 issued to John and Patty Driver 27000 shares of capital stock in exchange for a totat of $270,000 cash. Dec. 1Purchased for $288,000 at of the equipment formerly owned by Rent-it. Paid $134000 cash and issued a 1year note payable for $154.000. The note, plus all 12 months of accrued interest are due November 30, Year 2 Dec. 1 Paid $10,200 to Shapiro Realty as three months' advancy Tent on the rental yard and oice formerly occupied by Rent- Dec. 4 Purchased office supplies on account from Modern Onlics, S1,800. Payment due in 30 days. These supplies are expected to last for several months dbit the Omice Supplies asset account Dec. 8 Received $8.500 cash as advance payment on equipment rental from McName Construction Company Credit Unearned Rental Fees Dec. 12 Pald salaries for the first two weeks in December $4.900 Dec. 15 Excluding the McNamer advance equipment to fees earned during the fist 5 days of December amounted to $18.900, of which $12,500 was received in cash Dec. 17 Purchased an account from Earth Movers, Inc. $700 in parts needed to repair a rental tractor (Debita expense account Payment deth 10 days Dec 23 Collected 52 900 or the accountsvable recorded on December 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 to keep the backhoe for about two of the weeks Dec 26 Paid biweekly Salanes. 54.900 Dec 27 Paid the account path Movers, Inc. 5700 Dec 28 Declared a dividend of 10 cents per the payable on January 15 Year 2 Dec 29 Susquehanna Equipment Rentals was named along with Mission Landscaping and Colber Construction, datendant in a $27.00 led on behalf of Kevin Davenport Mo Landscaping had loft the lonted backhoe in a fenced construction site owned by Collier Construction. After working hours on como possui 13252714364243465 131527138571 1 ealty as three months advance rent 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 lability Insurance policy for $8,640. 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, $630. Payment is due in 30 days. Dec. 31 Equipment rental fees earned during the second half of December amounted to $20,400, of which $16,200 was received in cash. Data for Adusting 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. 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 $650. e During December , the company earned $3,700 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 9. Salaries earned by employees since the last payroll date (December 26) amounted to $1,700 at month end. h It is estimated that the company is subject to a combined federal and state income tax rate of 30 percent of income before income taxes (total revenue minus all expenses other than income taxes). These taxes will be payable in Year 2. 00 Award: 15.00 points I Prepare a balance sheet in report form) as of December 31. (Amounts to be deducted should be indicated by a minus sign. Round your final answers to the nearest whole dollar) Assignment Print View SUSQUEHANNA EQUIPMENT RENTALS Balance Sheet December 31, Year 1 Assets Rental equipment 0 Total assets 0 Liabilities & Stockholders' equity Liabilities: Total liabilities Stockholders' equity: $ 0 Total stockholders' equity Total liabilities and stockholders' equity s 0 9. Award: 15.00 points Prepare an after-closing trial balance as of December 31. (Round your final answers to the nearest whole dollar) SUSQUEHANNA EQUIPMENT RENTALS After-Closing Trial Balance December 31, Year 1 Debit Credit Totals 05 0 References Financial Statement Difficulty. 3 Hard [The following information applies to the questions displayed below.) On December 1, Yeart 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 Capital Stock Retained Earnings Didends Income Summary Rental Fees Earned Salaries Expense Cash Accounts Receivable Prepaid Rent Unexpired Insurance Ofice Supplies Rental Equipment Accumulated Depreciation Rental Equipment Notes Payable Accounts Payable Interest Payable Salaries Payable Dividends Payable Unearned Rental Fees Income Taxes Payable Maintenance Expense Utilities Expense Rent Expense Office Supplies Expense Depreciation Expense Interest Expense Income Taxes Expense The corporation performs adjusting entries monthly Closing entries are performed annually on December 31. During December, the corporation entered into the following transactions. Dec. 1 issued to John and Patty Driver 27000 shares of capital stock in exchange for a totat of $270,000 cash. Dec. 1Purchased for $288,000 at of the equipment formerly owned by Rent-it. Paid $134000 cash and issued a 1year note payable for $154.000. The note, plus all 12 months of accrued interest are due November 30, Year 2 Dec. 1 Paid $10,200 to Shapiro Realty as three months' advancy Tent on the rental yard and oice formerly occupied by Rent- Dec. 4 Purchased office supplies on account from Modern Onlics, S1,800. Payment due in 30 days. These supplies are expected to last for several months dbit the Omice Supplies asset account Dec. 8 Received $8.500 cash as advance payment on equipment rental from McName Construction Company Credit Unearned Rental Fees Dec. 12 Pald salaries for the first two weeks in December $4.900 Dec. 15 Excluding the McNamer advance equipment to fees earned during the fist 5 days of December amounted to $18.900, of which $12,500 was received in cash Dec. 17 Purchased an account from Earth Movers, Inc. $700 in parts needed to repair a rental tractor (Debita expense account Payment deth 10 days Dec 23 Collected 52 900 or the accountsvable recorded on December 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 to keep the backhoe for about two of the weeks Dec 26 Paid biweekly Salanes. 54.900 Dec 27 Paid the account path Movers, Inc. 5700 Dec 28 Declared a dividend of 10 cents per the payable on January 15 Year 2 Dec 29 Susquehanna Equipment Rentals was named along with Mission Landscaping and Colber Construction, datendant in a $27.00 led on behalf of Kevin Davenport Mo Landscaping had loft the lonted backhoe in a fenced construction site owned by Collier Construction. After working hours on como possui 13252714364243465 131527138571 1 ealty as three months advance rent 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 lability Insurance policy for $8,640. 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, $630. Payment is due in 30 days. Dec. 31 Equipment rental fees earned during the second half of December amounted to $20,400, of which $16,200 was received in cash. Data for Adusting 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. 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 $650. e During December , the company earned $3,700 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 9. Salaries earned by employees since the last payroll date (December 26) amounted to $1,700 at month end. h It is estimated that the company is subject to a combined federal and state income tax rate of 30 percent of income before income taxes (total revenue minus all expenses other than income taxes). These taxes will be payable in Year 2. 00 Award: 15.00 points I Prepare a balance sheet in report form) as of December 31. (Amounts to be deducted should be indicated by a minus sign. Round your final answers to the nearest whole dollar) Assignment Print View SUSQUEHANNA EQUIPMENT RENTALS Balance Sheet December 31, Year 1 Assets Rental equipment 0 Total assets 0 Liabilities & Stockholders' equity Liabilities: Total liabilities Stockholders' equity: $ 0 Total stockholders' equity Total liabilities and stockholders' equity s 0 9. Award: 15.00 points Prepare an after-closing trial balance as of December 31. (Round your final answers to the nearest whole dollar) SUSQUEHANNA EQUIPMENT RENTALS After-Closing Trial Balance December 31, Year 1 Debit Credit Totals 05 0 References Financial Statement Difficulty. 3 Hard