I just sign on and need help for solving this problem&nbspThe c

I just sign on and need help for solving this problem The corporation performsadjusting entries monthly. Closing entries are performed annually on December31. During December, the corporation entered into the following transactions:Dec. 1Issued to John and Patty Driver 20,000 shares of capital stockin exchange for a total of $200,000 cash.Dec. 1Purchased for $240,000 all of the equipment formerly owned byRent-It. Paid $140,000 cash and issued a one-year note payable for $100,000.The note, plus all 12-months of accrued interest, are due November 30, 2016.Dec. 1Paid $12,000 to Shapiro Realty as three months’ advance renton the rental yard and office formerly occupied by Rent-It.Dec. 4Purchased office supplies on account from Modern Office Co.,$1,000. Payment due in 30 days. (These supplies are expected to last forseveral months; debit the Office Supplies asset account.)Dec. 8Received $8,000 cash as advance payment on equipment rentalfrom McNamer Construction Company. (Credit Unearned Rental Fees.)Dec. 12Paid salaries forthe first two weeks in December, $5,200.Dec. 15Excluding the McNamer advance, equipment rental fees earnedduring the first 15 days of December amounted to $18,000, of which $12,000was received in cash.Dec. 17Purchased on account from Earth Movers, Inc., $600 in partsneeded to repair a rental tractor. (Debit an expense account.) Payment is duein 10 days.Dec. 23Collected $2,000 ofthe accounts receivable recorded on December 15.Dec. 26Rented a backhoe to Mission Landscaping at a price of $250 perday, to be paid when the backhoe is returned. Mission Landscaping expects tokeep the backhoe for about two or three weeks.Dec. 26Paid biweeklysalaries, $5,200.Dec. 27Paid the accountpayable to Earth Movers, Inc., $600.Dec. 28Declared a dividendof 10 cents per share, payable on January 15, 2016.Dec. 29Susquehanna Equipment Rentals was named, along with MissionLandscaping and Collier Construction, as a co-defendant in a $25,000 lawsuitfiled on behalf of Kevin Davenport. Mission Landscaping had left the rentedbackhoe in a fenced construction site owned by Collier Construction. Afterworking hours on December 26, Davenport had climbed the fence to play onparked construction equipment. While playing on the backhoe, he fell andbroke his arm. The extent of the company’s legal and financial responsibilityfor this accident, if any, cannot be determined at this time. ( Note: Thisevent does not require a journal entry at this time, but may requiredisclosure in notes accompanying the statements.)Dec. 29Purchased a 12-month public-liability insurance policy for$9,600. This policy protects the company against liability for injuries andproperty damage caused by its equipment. However, the policy goes into effecton January 1, 2016, and affords no coverage for the injuries sustained byKevin Davenport on December 26.Dec. 31Received a bill from Universal Utilities for the month ofDecember, $700. Payment is due in 30 days.Dec. 31Equipment rental fees earned during the second half ofDecember amounted to $20,000, of which $15,600 was received in cash.Data for AdjustingEntriesa.The advance paymentof rent on December 1 covered a period of three months.b.The annual interestrate on the note payable to Rent-It is 6 percent.c.The rental equipmentis being depreciated by the straight-line method over a period of eightyears.d.Office supplies onhand at December 31 are estimated at $600.e.During December, the company earned $3,700 of the rental feespaid in advance by McNamer Construction Company on December 8.f.As of December 31, six days’ rent on the backhoe rented toMission Landscaping on December 26 has been earned.g.Salaries earned by employees since the last payroll date(December 26) amounted to $1,400 at month-end.h.It is estimated that the company is subject to a combinedfederal and state income tax rate of 40 percent of income before income taxes(total revenue minus all expenses other than income taxes). These taxes willbe payable in 2016.


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