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 1 Sold common stock for cash 2 Paid December rent on fumished office 3 Purchased on account, T-shirts displaying company logo. The T-shirts were distributed at a grand opening 4 Paid to creditor on account 5 Collected want ad revenue in cash $65,000 5,000 550 475 2,800 6 Paid post office for cost of bulk mailing 7 Billed various firms for advertising in the first 2 issues of newspaper, 810 $6,300 8 Paid Tuscon Courier Service for transporting newspapers to post office 9 Paid for printing newspaper 10 Collected want ad revenue in cash 70 3,900 4,570 11 Received invoice for December utilities, to be paid in January 510 12 Paid for printing newspaper 4,400 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 Tuscon Courier Service for transporting newspapers to post office 90 10 17 Collected on accounts receivable. 5,100 18 Purchased fax machine for office in exchange for a six month note payable 3,100 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.)