Snyder, Saunders, and Eisenhauer Enterprises (SSE Enterprises) was formed in December 2016. During the first month of operation, the following transactions occurred:

Dec 1 Issued common stock in exchange for $2,000,000 cash.

2 Purchased inventory on account for $90,000 (the perpetual inventory system is used).

3 Purchased $400,000 in equipment for cash.

4 Paid the companys landlord $12,000 for rent for twelve months, debiting Prepaid Rent Expense.

10 Sold merchandise on account for $120,000. The cost of the merchandise was $75,000.

15 Borrowed $100,000 from a local bank and signed a note. Principal and interest of 10% to be repaid in one year.

20 Paid employees $15,000 wages for the first half of the month.

24 Paid $50,000 to suppliers for the merchandise purchased on December 2.

26 Collected $60,000 on account from customers.

28 Paid various utility bills of $1,500 for the month of December.

31 Paid $8,000 in insurance for the period January 1, 2017 to March 1, 2017.

31 Received payment of $5,000 for an order to be delivered January 20. The cost of the merchandise for the order will be $3,500.

Required (round all computations to the nearest whole dollar): 1. Prepare entries to record the above transactions. 2. Prepare an unadjusted trial balance. 3. Prepare adjusting entries for December, considering: a. Depreciation on the equipment is $20,000 per year. b. Rent expense for the month. c. Interest expense for the month. d. Wages for the second half of the month; assume employees earned wages evenly throughout the month. 4. Prepare an adjusted trial balance. 5. Prepare the four basic financial statements for the year ending December 31, 2016. (Omit the statement of cash flows because its covered in a later chapter.) 6. Prepare closing entries. 7. Prepare a post-closing trial balance.