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 focal 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 Sed common stock for at 365.000 2 Paid December runt or furnished office 1000 Purchased on our staying company loco. The Tights were distributed at a grande 550 4 Fan we erron court 25 5 Collected Helpwand advent 2000 Papotot cu of bulkan 810 ed various for over in the first west of newspaper 100 Paid Courier Service for Dansporting newspapers to put 70 9 Pait for paper 1900 10. Collected and admin 40570 11 Hached for December it to be paid in January 510 12 and for printing per 4400 13 Pad December wares 6.100 14 Bledanousfirms for ting in wes of the 8950 15 Paid post office for cost of 630 16 Paid Courier Service for transporting newspapers to posto 17 Collected on counts recewable 100 16 Purdased a printer for inchange for a month note payable 2100 90 Required Set up accounts for the following: Can Accounts Receivable, Office Equipment, Accounts Payable, Notus Payable, Common stock, Advertung Rever. Want A Beve. Printing Experse, Advertising Expense. Utities Expense. Salaries Bienst, Rent Expense, and Delivery Expense. Prepare journal entries in a general journal and record the foregoing to the accounts Date Dec General Journal Description Det Pusret (1) Credit To record issuance of common stock 3 To recond payment of officerent . To record purchase on account for Tots ned for adver 14 3 3 To record paywed on Decount 153 . To record collection wanitare * To record payment to post office for bulk maine + Toling for dig . To record payment to post office for bulk mailing, (7) To record billing for advertising e (8) Tor record payment for courier service, To record payment to post office for bulk mailing. (16) 5.656 To record payment to postolice for bumaling . 1161 To record payment for courier servir . 1171 To record collection of recevable ITB . . To record purchase of per Cash Accounts Receivable Office Equipment Common Stock (1) IL (141 11 123 14) mil 10 om (03 1121 113) (15) (16) 07 Ba Accounts Payable Notes Payable Printing Expense Advertising Revenue Account Payable Notes Payable Printing pense Advertising av 12 Want Ad Ravenue Rent Expense Us Expanse Advertising Expense 15 nu Salaries Expense Delivery Expense 13 16 Pris 3 Not yet med Mars of 58.00 Festion Transaction Analysis, Trial Balance and Financial Statements Below are the T-account balances as December 31 for Humbolt News Cash 55,995 Accounts Receivable 10,150 Office Equipment 3.100 Common Stock Bal Bal Bal Bal 65,000 Accounts Payable Bal 585 Notes Payable Bal Printing Expense 8,300 Advertising Revenue Bal 15.250 3,100 Bal Want Ad Revenue Bal 7,370 Rent Expense 5,000 Utilities Expense 510 Advertising Expense 550 Bal Bal Bal Salaries Expense 6,100 Delivery Expense 1,600 Bal Bal 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 earnir b. HUMBOLT NEWS Trial Balance December 31 1966 3 tv 6 S A Required b. Prepare a trial balance as of December 31 1. 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) Credit b. HUMBOLT NEWS Trial Balance December 31 Debt Accounts Receivable Office Equipment Accounts Payable Notes Payable Conimo Stock Advertising Revenue Want Ad Revenge Pruiting Expense Advertising Expense Utilities Experise salaries Expense Rent Exers Delivery Expense Total 5 5 C. HUMBOLT NEWS Income Statement For the Month Ended December 31 Revenue Advertising Revenue $ Want Ad Revenue Total Revenues $ Expenses Printing Expense Advertising Expense Utilities Expense Salaries Expense Rent Expense Delivery Expense Total Expenses Net Income $ EA d. HUMBOLT NEWS Balance Sheet December 31 Liabilities Assets $ > $ 4) Office Equipment Total Liabilities Stockholders' Equity Total Stockholders' Equity Total Liabilities and Stockholders' Equity $ Total Assets $