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 by 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 the want ads. The December transactions are summarized below: The following transactions occurred during the month of December: \begin{tabular}{l|r|r|} \hline 1 & Sold common stock for cash & $65,000 \\ \hline 2 & Paid December rent on furnished office & 5,000 \\ \hline 3 & Purchased on account, T-shirts displaying company & 550 \\ \hline & logo. The T-shirts were distributed at a grand opening. & 475 \\ \hline 4 & Paid to creditor on account & 2,800 \\ \hline 5 & Collected want ad revenue in cash & 810 \\ \hline 6 & Paid post office for cost of bulk mailing & 3,900 \\ \hline 7 & Billed various firms for advertising in the first 2 issues of newspaper, \\ \hline 8 & Paid Tuscon Courier Service for transporting newspapers to post office & 4,570 \\ \hline 9 & Paid for printing newspaper & 4,400 \\ \hline 10 & Collected want ad revenue in cash & 6,100 \\ \hline 11 & Received invoice for December utilities, to be paid in January & 630 \\ \hline 12 & Paid for printing newspaper & 5,100 \\ \hline 13 & Paid December salaries, & 3,100 \\ \hline 14 & Billed various firms for advertising in two issues of the newspaper & \\ \hline 15 & Paid post office for cost of bulk mailing & \\ \hline 16 & Paid Tuscon Courier Service for transporting newspapers to post office & \\ \hline 17 & Collected on accounts receivable. & \\ \hline 18 & Purchased fax machine for office in exchange & \\ \hline & for a six month note payable & \\ \hline \end{tabular} Required a. Set up accounts for the following items: 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, 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 statement of stockholders' equity for the month of December. e. 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. )