Required a. Set up accounts for the following: Cash, Accounts Receivable, Office Equipment, Accounts Payable, Notes Payable, Common Stock, Advertising Revenue, Want Ad Revenue, Printing Expense, Advertising Expense, Utilities Expense, Salaries Expense, Rent Expense, and Delivery Expense. Prepare journal entries in a general journal and record the foregoing transactions in the accounts.

b. Prepare a trial balance as of December 31.

c. Prepare an income statement for the month of December.

d. Prepare a balance sheet as of December 31. (Note: In this problem the net income for December becomes the amount of retained earnings at December 31.)

Transaction Analysis, Trial Balance, and Financial Statements On December 1, a group of individuals formed a corporation to establish the Humbolt News, a neighborhood newspaper featuring "Help wanted" ads of individuals and advertising by local firms. The free paper will be mailed to about 20,000 local residents revenue will be generated from advertising and want ads. The December transactions are summarized below The following transactions occured during the month of December: Sold common stock for cash. 1 $65.000 2 Paid December rent on furnished office. 5,000 Purchased on account, T-shirts displaying company logo. The T-shirts were distributed at a grand opening 3 550 Paid amount owed to creditor on account 4 475 5 Collected "Help wanted ad revenue in cash. 2800 Paid post office for cost of bulk maling 6 810 Blled various firms for advertising in the first two issues of newspaper. 7 6.300 Paid Courier Service for transporting newspapers to post office. Paid for printing newspaper 8 70 9 3900 Collected "Help wanted" ad revenue in cash 10 4570 11 Received invoice for December utilities, to be paid in january 12 Paid for printing newspaper 510 4400 13 Pald December salaries 6,100 Billed various firms for advertising in two issues of the newspaper. 14 8950 Paid post office for cost of bulk mailing 15 630 Paid Courier Service for transporting newspapers to post office. 16 90 Collected on accounts receivable 5100 17 Purchased a printer for office in exchange 18 for a six month note payable 3100 Required a. Set up accounts for the following Cash, Accounts Receivable. Office Equipment Accounts Payable. Notes Payable. Common Stock, Advertising Revenue. Want Ad Revenue. Printing Expense. Advertising Expense. Utilities Expense. Salaries Expense. Rent Expense. and Delivery Expense. Prepare journal entries in a general journal and record the foregoing transactions in the accounts a. General Journal Post ref Debit Credit Date Description Dec To record issuance of common stoo To record payment of office rent To record purchase on account for T-shirts used for advertising 4) To record payment owed on account 5) To record coliection want ad revenue (6) C C To record payment to post office for buk mailing (71 C C To record bifing for advertising Tor recoed payment for courier service .. sreco p Tecord on.of a ve recot Decemeres tsc py pinng Ts record pymen of sa 14) sreco rsvesn To record prymre o pe ice or mang t y r oa sevi tepo nan t nies a reco pse op Acceunts Receia Commen Steck Cash offce Equipment (14 Ra Ra Ba ) (2 Accounts Payable Netes Payable Pristing Espense Atdrertising Reene 4 12 (14 Ba Ba Eai Adverthing Expense Want Ad Revenus Rent Expense Uties Expense Ba Salaries Expense Delivery Expense Ra Transaction Analysis, Trial Balance and Financial Statements Below are the T-account balances as December 31 for Humbolt News Cash Accounts Receivable Office Equipment Common Stock Ba 10,150 Bal Bal s5.995 Ba 3.100 65.000 Accounts Payable Notes Payable Printing Expense Advertising Revenue 15 250 Ba Ba $as Bal 3.100 Ba 8300 Rent Expense Want Ad Revenue Utilities Expense Advertising Expense Ba Ba 7.370 Ba 5.000 510 Ba 550 Salaries Expense Delivery Expense 1,600 Bal 6100 Ba Required b. Prepare a trial balance as of December 31 c. Prepare an income statement for the month of December d. Prepare a balance sheet as of December 31, (Note: In this problem the net income for December becomes the amount of retained earnings at December 31.) HUMBOLT NEWS Trial Balance December 31 Debit Credit 0s Cash 0 0 Accounts Receivable 0 Office Equipment 0 Accounts Payable 0 Notes Payable Common Stock 10 0 Advertising Revenue Want Ad Revenue 0 0 Printing Expense 0 0 Advertising Expense Utilities Expense 0 Salaries Expense Rent Expense Delivery Expense 0 0 0S Totals HUMBOLT NEWS Income Statement For the Month Ended December 31 Revenue Advertising Revenue 0 Want Ad Revenue 0 Total Revenues Expenses 0 Printing Expense Advertising Expense 0 Utilities Expense Salaries Expense 0 Rent Expense Delivery Expense Total Expenses 0 o olo oo d. HUMBOLT NEWS Balance Sheet December 31 Liabilities Assets 0 0 Office Equipment Total Liabilities 0 0 Stockholders Equity 0 Total Stockholders' Equity 0 0 Total Liabilities and Stockholders Equity S Total Assets Please answer all parts of the question. C C 41