Question

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

Answer 1

Ledger account balances are:

Cash =debit balance of 55,995

accounts receivable =debit balance of 10,150

office equipment =debit balance of 3100

Common stock = credit balance of 65,000

for more accounts please go through the attachment.

Cash 65000 Accounts receivable 6300 8950 Office Equipment 18 3100 Balance 3100 Common stock 65000 Balance 65000 14 5000 475 5100 5 2800 Balance 10150 810 3900 10 4570 13 4400 6100 630 90 16 5100 55995 Balance Accounts Payable 550| 4 475 11 510 Balance 585 Notes payable 18 3100 Balance 3100 Printing Expense 3900 12 4400 Balance 8300 Advertising Revenue 6300 14 8950 Balance 15250 Want ad revenue 2800 10 4570 Balance 7370 5 2 Balance Rent Expense 5000 5000 Utilities Expense 510 Balance 510 Advertising Expense 550 Balance 550 Salaries Expense 13 6100 Balance 6100 Delivery Expense 6 810 8 70 630 16 90 Balance 1600 15/