Gamma Services began operations on January 1, Year 1. Below are the transactions for the first year:

Transaction #	Date	Transaction Description	Amount
1	Jan 1, Y1	Issued common stock for cash	$140,000
2	Jan 20, Y1	Purchased office supplies on account	$10,000
3	Feb 10, Y1	Paid cash for employee salaries	$35,000
4	Mar 5, Y1	Paid cash for advertising	$7,000
5	Apr 1, Y1	Provided consulting services on account	$60,000
6	May 20, Y1	Collected cash from clients	$55,000
7	Jun 30, Y1	Paid cash for office rent	$15,000
8	Dec 31, Y1	Paid cash dividends to shareholders	$5,000

Required:

1. Prepare the journal entries for each transaction.
2. Prepare the statement of retained earnings for the year ended December 31, Year 1.
3. Prepare the balance sheet as of December 31, Year 1.