Mary Sunny began a business, Sunny Law Firm, on December 1st of the current year. 1. The

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Mary Sunny began a business, Sunny Law Firm, on December 1st of the current year.

1. The following transactions happened during the month of December.
Dec. 1 Mary invested $15,000 cash and legal supplies valued at $6,000 in exchange for stock.
Dec. 1 Purchased $7,500 of office equipment on account.
Dec. 1 Completed legal work for a client and received $5,500 cash in full payment.
Dec. 8 Paid $3,500 cash in partial settlement of the amount owed from the Dec. 1st purchase.
Dec. 17 Completed $4,000 of legal work for a client on account.
Dec. 19 The firm paid $1,000 cash in dividends.
Dec. 22 Received $2,500 cash as partial payment for the work completed on Dec. 17th.
Dec. 29 Paid $2,500 cash for the clerk’s salary.
Dec. 31 $100 worth of depreciation on the office equipment needs to be recorded.
Dec. 31 The physical amount of legal supplies that remain are valued at $5,000.

2. Create a Single-step Income Statement for the month of December for this service business.
3. Create a Classified Balance Sheet for December 31st.
4. Create a Cash Flow Statement for the month of December.