Chec [The following information applies to the questions displayed below.) On December 1, Year 1, John and Patty Driver

[answerhappygod]

Chec The Following Information Applies To The Questions Displayed Below On December 1 Year 1 John And Patty Driver 1 (94.11 KiB) Viewed 29 times

Chec The Following Information Applies To The Questions Displayed Below On December 1 Year 1 John And Patty Driver 2 (104.75 KiB) Viewed 29 times

Chec The Following Information Applies To The Questions Displayed Below On December 1 Year 1 John And Patty Driver 3 (95.01 KiB) Viewed 29 times

Chec The Following Information Applies To The Questions Displayed Below On December 1 Year 1 John And Patty Driver 4 (72.51 KiB) Viewed 29 times

Chec The Following Information Applies To The Questions Displayed Below On December 1 Year 1 John And Patty Driver 5 (85.2 KiB) Viewed 29 times

Chec The Following Information Applies To The Questions Displayed Below On December 1 Year 1 John And Patty Driver 6 (88.82 KiB) Viewed 29 times

Chec The Following Information Applies To The Questions Displayed Below On December 1 Year 1 John And Patty Driver 7 (88.7 KiB) Viewed 29 times

Chec [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. 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 Unearned Rental Fees Income Taxes Payable Maintenance Expense Utilities Expense Rent Expense Office Supplies Expenso Depreciation Expense Interest Expense Income Taxes Expense 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, Dec. 1 Issued to John and Patty Driver 23,000 shares of capital stock in exchange for a total of $230,000 cash. Dec. 1 Purchased for $268,800 all of the equipment formerly owned by Rent-it. Paid $136.000 cash and issued a 1-year note payable for $132,800. The note, plus all 12 months of accrued interest, are due November 30, Year 2. Dec. 1 Paid $9,900 to Shapiro Realty as three montha' advance rent on the rental yard and office formerly occupied by Rent-It. Dec. 4 Purchased office supplies on account from Modern Office Co., $1,100. Payment due in Jo daye. (Those supplies are expected to last for several monthadebit the office Supplies at account.) Dec. 8 Received 50,000 cash as advance payment on equipment rental from Mo Naner Construction Company. (Credit Unearned Rental fees.) Dec.12 Paid salaries of $4,300 for the first two weeks in December 15 days of Dec 15 Excluding the Mo Namor advance, equipment rental food earned during the first < Prev 2 of 2 Next MacBook Air
REDIT Saved Help Save & Exit Check my Dec.12 Paid salaries or >, JUU For the first two weeks in vecender. Dec.15 Excluding the MeNamer advance, equipment rental fees earned during the first December amounted to $18,400, of which $13,000 was received in cash. 15 days of Dec. 17 Purchased on account from Earth Movers, Inc., $1,000 in parte needed to perform basic maintenance on a rental tractor. Payment is due in 10 days. Dec.23 Collected $2,300 of the accounts receivable recorded on December 15. Dec. 26 Rented a backhoe to Mission Landscaping at a price of $260 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, $4,300. Dec. 27 Paid the account payable to Earth Movera, Inc., $1,000. Dec.28 Declared a dividend of 10 cents per share, payable on January 15, Year 2. Dec. 29 Susquehanna Equipment Rentals was named, along with Mission Landscaping and Collier Construction, as a co-defendant in a $23,000 lawsuit 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 responsibility for this accident, it 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 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 afforda 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, $660. Payment is due in 30 dayo. Dec.31 Equipment rental fees earned during the second half of December amounted to $20,500, of which $16,100 was received in cash. bk int ences Data for Adjusting Entries in Year 1 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. Any salvage value at the end of its useful life is expected to be negligible and immaterial d. Office supplies on hand at December 31 are estimated at $670 e. During December, the company earned $3,900 of the rental fees paid in advance by McNamer Construction Company on December 8, f. As of December 31, six days' rent on the backhoe rented to Mission Landscaping on December 26 has been earned. g. Salaries earned by employees since the last payroll date (December 26) amounted to $1.200 at month-end, SN Next of 2 < Prev C aw 1
13.12110 Question 2 - EXTRA CREDIT - Connect DIT 6 O Required Saved Help Save & Exit Check e. During vecember, the company earned >3,900 Or une rentai Tees paid in advance by meramer Construction Company on December 8. f. As of December 31, six days' rent on the backhoe rented to Mission Landscaping on December 26 has been earned g. Salaries earned by employees since the last payroll date (December 26) amounted to $1,200 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. Post the entries into the following ledger accounts. (Enter the transaction in chronological order for each of the Ledger ace Round your final answers to the nearest whole dollar.) Cash Accounts Receivable Debit Credit Balance Date Date Debit Credit Balance Unexpired Insurance Prepaid Rent SN Next 2 of 2 !!! < Prev
Required information Prepaid Rent Debit Credit Date Unexpired Insurance Debit Credit Balance Date Balance Office Supplies Debit Credit Rental Equipment Debit Credit Date Balance Date Balance Accumulated Depreciation Rental Equipment Date Debit Credit Balance Notes Payable Debit Credit Date Balance tes Accounts Payable Debit Credit Interest Payable Debit Credit Balance Balance Dato Date hlutande Doucha Galasse Bush CO 2 Next < Prev of 2 !!! MacBook Air
Required information Salaries Payable Debit Credit Date Balance Dividends Payable Debit Credit Date Balance Unearned Rental Fees Debit Credit Income Taxes Payable Debit Credit Date Balance Date Balance Capital Stock Debit Credit Retained Earnings Debit Credit Balance Balance Date Date Income Summary Debit Credit Dividends Debit Credit Balance Balance Date Date Salaries Expense n Rental Fees Earned ta 2 Next of 2 < Prev
Required information Rental Feos Earned Debit Credit Date Salaries Expense Debit Credit Balance Date Balance Maintenance Expenso Debit Credit Utilities Expense Debit Credit Date Balance Date Balance Office Supplies Expense Debit Credit Rent Expense Debit Credit Balance Date Balance Date Interest Expenso Debit Credit Balance Date Depreciation Expense Debit Credit Balance Date Next SN 2 of 2 < Prev MacBook Air
Saved Help S. Required information Rent Expense Debit Credit Office Supplies Expense Debit Credit Date Balance Date Balance Depreciation Expense Debit Credit Interest Exponse Debit Credit Date Balance Dato Balance Income Taxes Expense Debit Credit Balance Date 2 Next