[The following information applies to the questions displayed below.) On December 1, Year 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 Dividends Income Summary Rental Fees Earned Salaries Expense Cash Accounts Receivable Prepaid Rent Unexpired Insurance Office Supplies Rental Equipment Accumulated Depreciation Rental Equipment Notes Payable Accounts Payable Interest Payable Salaries Payable Dividends Payable Uncanned Rental Fees Income Tames 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 sockin exchange for a total of $270.000 cash Dec 1Purchased for $288.000 all of the equipment formerly owned by Rentit Paid $104000 cash and issued a year note payable for $154.000 The note, plus all t2 months of accrued intereste due November 30 Year 2 Dec 1 Paid $10200 10 Shape Realty as three months advance rent on the rental yard and office forme ored by Rent De Purch ofice suplies on account from Modern Office Co. S1B Bayment din 30 days. These Supplies are expected to for several months, debit the once upon account De BHS 500h as advice ayment onment Nuction Company F D in Decemb54900 Dec 5 rental ning that can be 312 500 wa Dec 17 obit De 23 Dec 20 H 5200 Dot 20 D Det 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 joumal 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. 311 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 Agusting Entries a. 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 $650. e During December, the company earned $3,700 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 $1,700 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 tiltal revenue minus all expenses other than income taxes). These taxes will be payable in Year 2. 00 Award: 15.00 points 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.) SUSQUEHANNA EQUIPMENT RENTALS Balance Sheet December 31, Year 1 Assets Rental equipment Total assets 0 Liabilities & Stockholders' equity Liabilities: Total liabilities Stockholders' equity: Total stockholders equity Total liabilities and stockholders' equity 9. Award: 15.00 points Prepare an alter-closing trial balance as of December 31. (Round your final answers to the nearest whole dollar) Assignment Print View SUSQUEHANNA EQUIPMENT RENTALS After-Closing Trial Balance December 31, Year 1 Debit Credit Totals 0 $