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 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: $65,000 5,000 550 475 2,800 810 6,300 70 Sold common stock for cash. 2 Paid December rent on furnished office. 3 Purchased on account, T-shirts displaying company, logo. The T-shirts were distributed at a grand opening. 4 Paid amount owed to creditor on account. 5 Collected "Help wanted" ad revenue in cash. 6 Paid post office for cost of bulk mailing. 7 Billed various firms for advertising in the first two issues of newspaper, 8 Paid Courier Service for transporting newspapers to post office. 9 Paid for printing newspaper. 10 Collected "Help wanted" ad revenue in cash. 11 Received invoice for December utilities, to be paid in January. 12 Paid for printing newspaper. 13 Paid December salaries. 14 Billed various firms for advertising in two issues of the newspaper. 15 Paid post office for cost of bulk mailing. 16 Paid Courier Service for transporting newspapers to post office. 17 Collected on accounts receivable. 18 Purchased a printer for office in exchange, for a six month note payable. 3,900 4,570 510 4,400 6,100 8,950 630 90 5,100 3,100 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 Bal Office Equipment 3,100 Bal Bal Common Stock Bal 65,000 Accounts Payable Bal 585 Notes Payable Bal Printing Expense 8,300 3,100 Bal Advertising Revenue Bal 15,250 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 earnings at December 31.) 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 earnings at December 31.) b. Credit 0 HUMBOLT NEWS Trial Balance December 31 Debit Cash $ 0 $ 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 Totals $ 0$ 0 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 d. HUMBOLT NEWS Balance Sheet December 31 Liabilities Assets Office Equipment 0 Total Liabilities Stockholders' Equity Total Stockholders' Equity Total Assets $ 0 Total Liabilities and Stockholders' Equity $ Please answer all parts of the question. 0 0
