| Dec. | 1 | Issued to John and Patty Driver 30,000 new shares in exchangefor a total of $300,000 cash. |
| Dec. | 1 | Purchased for $220,800 all of the equipment formerly owned byRent-It. Paid $131,000 cash and issued a one-year note payable for$89,800. The notes, plus all 12-months of accrued interest, are due30 November 2014. |
| Dec. | 1 | Paid $10,200 to Shapiro Realty as three months’ advance rent onthe rental yard and office formerly occupied by Rent-It. |
| Dec. | 4 | Purchased office supplies on account from Modern Office Co.,$1,900. Payment due in 30 days. (These supplies are expected tolast for several months; debit the Office Supplies assetaccount.) |
| Dec. | 8 | Received $8,100 cash as advance payment on equipment rental fromMcNamer Construction Company. (Credit Unearned Rental Fees.) |
| Dec. | 12 | Paid salaries for the first two weeks in December, $5,000. |
| Dec. | 15 | Excluding the McNamer advance, equipment rental fees earnedduring the first 15 days of December amounted to $18,100, of which$12,300 was received in cash. |
| Dec. | 17 | Purchased on account from Earth Movers Limited, $900 in partsneeded to repair a rental tractor. (Debit an expense account.)Payment is due in 10 days. |
| Dec. | 23 | Collected $2,700 of the accounts receivable recorded on15December. |
| Dec. | 26 | Rented a backhoe to Mission Landscaping at a price of $260 perday, to be paid when the backhoe is returned. Mission Landscapingexpects to keep the backhoe for about two or three weeks. |
| Dec. | 26 | Paid biweekly salaries, $5,000. |
| Dec. | 27 | Paid the account payable to Earth Movers Limited, $900. |
| Dec. | 28 | Declared a dividend of 10 cents per share, payable on 15January 2014. |
| Dec. | 29 | Susquehanna Equipment Rentals was named, along with MissionLandscaping and Collier Construction, as a co-defendant in a$29,000 lawsuit filed on behalf of Kevin Davenport. MissionLandscaping had left the rented backhoe in a fenced constructionsite owned by Collier Construction. After working hours on 26December, Davenport had climbed the fence to play on parkedconstruction equipment. While playing on the backhoe, he fell andbroke his arm. The extent of the company’s legal and financialresponsibility for this accident, if any, cannot be determined atthis time. ( Note: This event does not require a journal entry atthis time, but may require disclosure in notes accompanying thestatements.) |
| Dec. | 29 | Purchased a 12-month public-liability insurance policy for$8,520. This policy protects the company against liability forinjuries and property damage caused by its equipment. However, thepolicy goes into effect on 1 January 2014, and affords no coveragefor the injuries sustained by Kevin Davenport on 26 December. |
| Dec. | 31 | Received a bill from Universal Utilities for the month ofDecember, $660. Payment is due in 30 days. |
| Dec. | 31 | Equipment rental fees earned during the second half of Decemberamounted to $20,100, of which $15,800 was received in cash. |
