[The following Information applles to the questions displayed below.] On December 1. Year 1. John and Patty Drlver formed a corporation called Susquehanna Equlpment Rentals. The new corporation was able to begin operations Immedlately by purchasing the assets and taking over the location of Rent-lt, an equipment rental company that was golng out of business. The newly formed company uses the following accounts. The corporation performs adjusting entrles monthly. Closing entrles 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 oriver 25,6ee nev shares in exchange for a total of \$25e,6ee cash. Dec. 1 Purchased for \$249,69e all of the equipment formerly amned by Rent-It. Paid \$131,6ee cash and issued a 1-year note payable for $118,690. The note, plus all 12 morths of accrued interest, are due Novenber 39 , Year 2. Dec. 1 Paid $16, 30 to shapiro Realty as three morths' advance rent on the rental yard and office formerly occupied by Rent-It. Dec. 4 Purchased office supplies on acoount from rodern office co., $1,209. Payment due in 3 days. (These supplies are expected to last for several morths; debit the office supplies asset acoount.) Dec. B Received $8,200 cash as advance payment on equipment rental from inkamer construction Company. (Credit Unearned Rental Fees.) Dec.n Paid salaries of $5,200 for the first two weeks in December. Dec. 15 excluding the Mckamer advance, equipment rental fees earned during the first 15 days of Decenber amrunted to $18,260, of which $12, cee was received in cash. Dec. F purchased on account from Earth Movers, Inc., \$wee in parts needed to perform basic maintenance on a rental tractor. Payment is due in 19 days. Dec. 23 collected $2, 29 of the accounts receivable recorded on Decenber 15 . Dec.26 Rented a backhoe to Mission Landscapirg at a price of $300 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 biveek1y salaries, $5,200. Dec.27 Paid the account payable to Earth "overs, Inc., \$2e. Dec.26 Declared a dividend of 19 cents per share, payable on January 15, Year 2. Dec. 29 susquehanna Equipment Rentals was named, alorg with wission Landscaping and collier construction, as a -defendant in a \$\$3,6ee lavsuit 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 climbed the fence to play on parked construction equipment. Hhile playing on the backhoe, he fell and broke his arm. The extent of the company's leqall and financial responsibility for this accident, if any, cannot be determined at this time. (wote: This event does not require a journal entry at this time, but may require disclosure in notes acompanying the statements.) Dec. 2 Purchased a 12-morth public liability insurance policy for 9, 66e. This policy protects the company a arainst liability for injuries and property damqge caused by its equipment. However, the policy goes into effect on anuary 1 , Year 2, and affords no coverage for the injuries sustained by kevin Davenport on Decenter 26. Dec.31 Received a bill from Universal utilities for the morth of Decenber, \$ese. Payment is due in 39 days. Dec. 31 Equipment rental fees earned during the second half of December amounted to $20, 56e, of which $16, 33ee was received in cash. Deta for Aclusting Entrles In Yeer 1 a. The advance payment of rent on December 1 covered a perlod of three months. b. The annual interest rate on the note payable to Rent-It Is 6 percent. c. The rental equipment is belng depreclated by the straight-Inne method over a perlod of elght years. Amy salvage value at the end of Its useful life Is expected to be negllggble and Immaterlal. d. Office supplles on hand at December 31 are estimated at $670. e. Durlng December, the company earned $4,100 of the rental fees pald in actance by McNamer Construction Company on December 8. f. As of December 31 . s1 x days' rent on the backhoe rented to MIssion Landscaping on December 26 has been earned. g. Salarles earned by employees since the last payroll date (December 26) amounted to $1,100 at month-end. h. It Is estimated that the company Is subject to an income tax rate of 30 percent of profit before income taxes (total revenue minus all expenses other than income taxes'. These taxes will be payable in Year 2. ost the entrles Into the following ledger accounts. |Enter the trensecton In chronologkalorder for sech of the Ledger eccounts. ound your final answers to the nearest whole dollar.|