Transaction Analysis, Trial Balance, and Financial Statements On December 1, a group of individuals formed a corporation to establish the Arcadia 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 occurred during the month of December: 1 Sold common stock of Arcadia News, for cash. $60,000 2 Paid December rent on furnished office. 5,000 3 Purchased on account, T-shirts displaying company, logo. The T-shirts were distributed at a grand opening. 550 4 Paid amount owed to creditor on account. 350 5 Collected "Help wanted" ad revenue in cash. 2,800 6 Paid post office for cost of bulk mailing. 710 7 Billed various firms for advertising in the first two issues of newspaper, 6,300 8 Paid Courier Service for transporting newspapers to post office. 70 9 Paid for printing newspaper. 3,900 10 Collected "Help wanted" ad revenue in cash. 4,570 11 Received invoice for December utilities, to be paid in January. 510 12 Paid for printing newspaper. 4,900 13 Paid December salaries. 6,100 14 Billed various firms for advertising in two issues of the newspaper. 8,950 15 Paid post office for cost of bulk mailing. 630 16 Paid Courier Service for transporting newspapers to post office. 60 17 Collected on accounts receivable. 5,100 18 Purchased fax machine for office in exchange, for a six month note payable.

A. Prepare a trial balance as of December 31. b. Prepare an Income Statement for the month of December c. 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