On December 1, 2020 Hopkins, Inc. started as a corporation. A summary of transactions through December 31, 2020 is presented below. < 1. December 1: Stockholders invest $500,000 cash in the business and receive stock in exchange. 2. December 1: New computer equipment is purchased in exchange for a three year, $6000 6% note payable. Equipment will be used for five years. Interest payable every 6 months but the $6000 principle due as a balloon payment at maturity. < 3. December 1: Office rent is paid for a half a year in advance, $12,000. < 4. December 1: Six month insurance policy is paid, $1200. < 5. December 15: Bill design services provided to customers on account, $30,000 6. December 31: Dividends of $500 are paid to existing shareholders. < 7. December 31: Pay employees $10,000 for services provided. 8. December 31: Pay utility bills, $2000. < 9. December 31: Collect cash of $5,000 for services billed on December 15th 10. December 31: Services provided and not yet billed, $5000. < 11. December 31: Retainer received from client for work to begin in January, 2021 and end in June 2021, $3000. < C Chart of Accounts Cash Accounts Receivable Prepaid rent Prepaid insurance Computer Equipment Accumulated Depreciation Notes Payable Unearned Revenues Interest payable e Common Stock Sales Revenue Salaries Expense Insurance expense Depreciation Expense Rent expense Utilities expense Interest Expense Retained Earnings Required: 1. Record the journal entries (for the transactions above and the adjusting journal entries needed) for the month of December in proper journal entry form (omitting explanations). Ignore income taxes. < 2. Post the journal entries to the general ledger using T-accounts and draw an ending balance. 3. Prepare an adjusted trial balance. < 4. Prepare the December 31st financial statements (balance sheet, income statement and statement of retained earnings) for Hopkins, Inc. Calculate the current ratio and interpret liquidity. < 5.