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.- Chart of Accounts Cash Accounts Receivable Prepaid rent Prepaid insurance Computer Equipment Accumulated Depreciation Notes Payable Unearned Revenues Interest payable 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. 5. Calculate the current ratio and interpret liquidity