The corporation performs adjusting entrles 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 Oriver 24,000 new shares in exchange for a total of $248,060 cash. Dec. 1 Purchased for $259,200 all of the equipment formerly oned by Rent-It, Paid, $140, 900 cash and issued a 1-year note payable for $119,200. The note, plus al1 12 noeths of accried interpst, are due Novenber 39 , Year 2. Dec. 1 Paid $10,800 to Shapiro Realty as three month'? advance rent on the rental yard and office fornerly occupied by Rent-it. Dec. 4 Purchased office supplies on account froe Modern office Co., \$1,400. Payment due in Je days. (These supplies are expected to last for several months; debit the office supplies isset account.) Dec. I Received $8,300 cash as advance payment on equipent rental froa Melianer Construt ion Company. (Credit Unearned Mental Fees.) Dec. 12 Paid salaries of $5,100 for the first two weeks in Decenber. Dec.1s Excluting the Mchamer advance, equipent rental fees earned during the first is days of Decenber amounted to $18,400, of which $12,500 was received in cash. Dec.17 Purchased on account froe Earth Movers, The., $998 in parts necded to perfora basic taintenante on a rental tractor. Payment is due in 10 days. Dec, 23 Collected $2,800 of the accounts receivable recorded on Deccenber 15. Dec.26 thented a backhoe to Mission Landscapley at a price of $260 per day, to be paid then the backhoe is returned. Mission Landscaping expects to keep the backhoe for about two or three weeks. Dee.26 Paid biueekly salaries, 55,100. Dec.27 paid the eccount payable to Earth Mevers, Tne,. $900. Dec.2t Declared a dividend of 10 cents per share, payable on January 15 , Year 2. Deci29 Susquehana Equipment Aentals was nased, alone with Mission tandscapins and Collier Construction, as a codefendant in a $30, eoo lassult filed on behalf of Kevin Davenport, Mission lasdscaping had left the rented backhoe in a fenced construction site esned by Collier Construction. After workingt hours on Decenber 26 , Davenport had cliabed the fence to play on parked construction equipant. While playing on the backhoe, he fell and broke his are. The extent of the conpany's legal and financial responsibility for this accident, if any, cannot be deternined at this time. (Noter This event does not require? journal entry at this tine, but eay require disclesure in notes accompanying the statrents.) Dec, 29 Purchased a 12 -aonth public 1 iability insurance policy for 69,120 . This policy protects the company altainst liability. for injuries and property danage caused by its equipaent. Ifowever, the policy noes into effect on January 1, Year 2, and affords ne coverage for the injories sustained by Kevin Davenport on Deceaber 26. Dec. 3 Received a bill from Universal utilities for the eanth of Decenber, I6so, Payment is due in 30 days. Dec, 31 tquipment rental fees eapned during the second half of December anounted to $20,000, of which $15,600 was Required information [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. Dota 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 depreclated 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 $610. e. During December, the company earned $4,300 of the rental fees paid in advance by McNamer Construction Comparry on December 8 t. As of December 3t, six days' ient on the backhoe rented to Mission Landscaping on December 26 has been earned. 9. Salaries earned by employees since the last payroll date (December 26) amounted to $1,900 ot month end. h. It is estimated that the company is subject to an income lax 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? Propare an income statement for the year ended December 31 . (Round your final answers to the nearest whole dollar.)