Required information $ 45,040 SUSQUEHANNA EQUIPMENT RENTALS Income Statement For the Year Ended December 31, Year...

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Required information $ 45,040 SUSQUEHANNA EQUIPMENT RENTALS Income Statement For the Year Ended December 31, Year 1 Revenue: Rental fees earned Expenses Maintenance expense 700 Salaries expense 10.600 Utilities expense 670 Rent expense 3,900 Interest expense 401 Depreciation expense 2,200 Office supplies expense 1,090 $ $ 19,561 25,479 $ 25,479 K Prev Comprehensive Problem 1 [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 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 Uneamed Rental Fees Income Taxes Payable Capital Stock Retained Earings Dividends Income Summary Rental Fees Earned Salaries Expense 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 24,000 shares of capital stock in exchange for a total of $240,000 cash Dec. Purchased for $211.200 all of the equipment formerly owned by Rent-It. Paid S131,000 cash and issued 1 year note payable for $80,200. The note, plus all 12 months of accrued interest, are due November 30, Year 2 Dec. 1 Paid S11,700 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. $1,700. Payment due in 30 days. These supplies are expected to last for several months, debit the Office Supplies asset account.) Dec. 8 Received $8.800 cash as advance payment on equipment rental from Me Namer Construction Company (Credit Unearned Rental Fees Dee. 12 Paid salaries for the first two weeks in December, $4,700. Dec.15 Excluding the MeNamst advance, equipment rental fees cared during the first days of December amounted to $18,800, of which 812,600 was received in cash. Dec.17 Purchased on account from Earth Movers, Inc. $700 in parts needed to repair a rental tractor. (Debit an expense account.) Payment is due in 10 days. Dec.23 Collected $3.000 of the accounts receivable recorded on December 15. Dec.26 Rented a backhoe to Mission Landscaping at a price of 5140 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, S4.700. Dec 27 Paid the account payable to Earth Movers, Inc. $700. Dec 28 Declared a dividend of 10 cents per share, payable on January 13. Year 2 Dec 29 Susquehanna Equipment Rentals was named, along with Mission Landscaping and Collier Construction a co-defendant in a $26.000 lawsuit filed on behalf of Kevin Davenport. Nisson Landscaping had left the rented backhoe in a fenced construction site owned by Collier Construction. After working hour 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 publie liability insurance policy for $9,120. 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, S670. Payment is due in 30 days Dec.31 Equipment rental fees earned during the second half of December amounted to $20,100, of which $16,400 was received in cash. Data for Adjusting 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 5610. e. During December, the company camned $4,100 of the rental fees paid in advance by M Name Construction Company on December 8. As of December 31, six days' rent on the backhoe rented to Mission Landscaping on December 26 had been camed Salaries earned by employees since the last payroll date (December 26) amounted to ST 200 at month h. It is estimated that the company is subject to a combined federal and state income tax rate of 40 percent of income before income taxes (total revenue minus all expenses other than income taxes). These taxes will be payable in Year 2 Comprehensive Problem 1 Part 4 to the Prepare an income statement for the year ended December 31. Round your final as whole dollar

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Statement of Income For the period ending 31.12.Year 1 Rental fees earned 45040 Less: Maintenance expense 700 Salaries expens

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Required information $ 45,040 SUSQUEHANNA EQUIPMENT RENTALS Income Statement For the Year Ended December 31, Year...

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