Drapkins Stationers $($DS$)$ sells pens in its retail store location based in Chapel Hill, NC$.$ DS has thefollowing November $30,2023$ Trial Balance listed below for the first $11$ months of its fiscal $2023$operations.November $30,2023$ Trial Balance

Footnotes: $(1)$ Furniture, Fixtures & Equipment for the shop was purchased on $1/1/19$ and is being depreciated over $10$ years,Straight$-$line method with no residual value. Note, $11$ months of $2023$ depreciation has already been expensed.$(2)$ Warehouse was purchased on purchased on $1/1/13$ and is being depreciated over $20$ years, Straight$-$line method withno residual value. Note, $11$ months of $2023$ depreciation already has been expensed.$(3)$ The $$150$k Notes Payable was issued on $1/1/23$ and will only be fully due on $1/1/26.$ Interest and note will be paidon $1/1/26($i$.$e$.,$ no payments until final maturity date$).$ Interest rate is $12\%$ annually.

Trial Balance: Cash $14,000$Accounts Receivable $75,000$Allowance for U$/$C Accts $8,000$Inventory $(5,000$ units x $$75$ unit cost$)375,000$Furniture, Fixtures & Equipment $($FF&E$)(1)1,200,000$Accumulated Depreciation $-$ FF&E $(1)590,000$Building $-$ Warehouse $(2)480,000$Accumulated Depreciation $-$ Warehouse $(2)262,000$Accounts Payable $8,000$Income Tax Payable $-$Interest Payable $16,500$Notes Payable $(3)150,000$Common Stock $350,000$Retained Earnings $738,000$Revenue $1,816,000$Cost of Sales $825,000$Salaries Expense $457,000$Advertising Expense $115,000$Rent Expense $249,000$Income Tax Expense $-$Depreciation Expense $-$ FF&E $110,000$Depreciation Expense $-$ Warehouse $22,000$Interest Expense $16,500$Dividends $-$Loss on Sale of Warehouse $-$Bad Debt Expense $-$Totals $3,938,5003,938,500$DS has the following transactions during the month of December $2023$:Dec $1$ Issue Common Stock for $$100,000$ and receive cash from new stockholders.Dec $3$ Purchases $2,500$ units of pen inventory for $$78$ per unit $($$$195,000$ total$)$ on accountDec $5$ Purchases $3,500$ units of pen inventory for $$82$ per unit $($$$287,000$ total$)$ on accountDec $7$ Purchases $2,900$ units of pen inventory for $$86$ per unit $($$$249,400$ total$)$ on accountDec $8$ Return $200$ damaged units from the Dec $3$rd purchase to the vendor $($cost $=$ $$78$ per unit$/$TotalCost $=$ $$15,600)$Dec $10$ Sells $6,300$ units at $$150$ per unit on account $-$ $$945,000$ total revenue $($LIFO inventorymethod is used for cost purposes Note: $2-$part journal entry$)$Dec $11$ Receives cash of $$725,000$ from customers for prior sales on accountDec $13$ Pays $$350,000$ in cash for prior vendor purchases made on accountDec $14$ Purchases $1,900$ units of pen inventory for $$90$ per unit $($$$171,000$ total$)$ on accountDec $18$ Sells $4,400$ units at $$150$ per unit on account $-$ $$660,000$ total $($LIFO inventory method is usedfor cost purposes Note: $2-$part journal entry$)$Dec $20$ Receives cash of $$745,000$ from customers for prior sales on accountDec $23$ Pays $$425,000$ in cash for prior vendor purchases made on accountDec $28$ Write$-$off accounts receivable as uncollectible $-$ $$10,000$Dec $28$ Pay for employee salaries in cash $-$ $$75,000$Dec $28$ Pay for December Advertising expense in cash $-$ $$275,000$Dec $30$ Pay for monthly rent in cash $-$ $$20,000$Dec $30$ Pay dividends to shareholders in cash, $$500,000$Dec $31$ Sell the Warehouse Building for Cash $-$ $$200,000($Hint: Record the December Depreciationprior to recording the sale of the Warehouse$).$ Note, this is an asset sale transaction.DS has the following adjusting entries which need to be recorded as of $12/31/23$ as well:$1.$ Uncollectible accounts are determined using an aging methodology. The company hasdetermined that the accounts receivable is estimated to have $6\mathrm{.}0\%$ as uncollectible. Pleaseprepare the appropriate adjusting journal entry for the Accounts Receivable allowance. $($Hint: UseAccounts Receivable and Allowance for Uncollectible Accts T Account balances to calculate.$)2.$ The Furniture, Fixtures & Equipment was purchased over $4$ years ago and is being depreciatedover $10$ years on a straight$-$line basis with no residual value. DS has recorded monthlydepreciation expense during $2023,$ but has not recorded the entry for December $2023$depreciation and will need to make the adjusting entry accordingly$\mathrm{.}3.$ DS has a Notes Payable that has both the principal and interest due on $1/1/26.$ FSC has accruedthe interest expense for the first $11$ months of fiscal $2023,$ but has not yet recorded the entry forDecember $2023.$ Please record the December adjusting entry to recognize the interest expense.Note, the annual interest on the Notes Payable is $12\%\mathrm{.}4.$ DS estimates that accrued income taxes are $$55,000$ for $2023.$ Please make the appropriateadjusting entry.Please perform the following related to DSs accounting in December $2023$:$1.$ Record all regular journal entries and adjusting journal entries. $(12$ Points$)$Note: All of the accounts used by FSC are listed in the opening Trial Balance, but Bad DebtExpense, Income Tax Expense, Income Tax Payable, Loss on Sale of Warehouse, andDividends are all at zero balances to start the month of December $2023.$ These accounts will beused in December $2023$ journal entries$\mathrm{.}2.$ Prepare an Adjusted Trial Balance as of $12/31/2023.(12$ Points$)($Note: Use T Accounts to assist$)3.$ Prepare Financial Statements as of $12/31/2023$ for DS $(12$ Points$)$a$.$ Income Statement Multi$-$Step preferred, but not required.b$.$ Statement of SH Equityc. Balance Sheet