December 1 On Decenber 1, Mike Sweet forms a consulting business, named Sweet Hones. Sweet Hones receives 368 , ead cash fram Mike Sweet in exchange for common stock. December 2 sweet Homes pays 54,408 cash for supplies. The company's policy is to record all prepaid expenses in asset accounts. December 3 Swet Homes pays $52,000 cash for equipment, December 4 Sweet Hones purchases $10,600 of supplies on credit from a supplier, CalTech Supply. Decenber 5 Sireet Homes provides consulting services and inmediately collects 36,100, cash. December 6 'Sweet Homes pays $2,909 cash for December rent. Deceinber 7 Sweet Hones pays $1,400 cash for enployee salary. December 8 Sweet Homes provides consulting services of $4,309 and rents its test facilities for $3, , pee. The customer is billed \$7, 369 for these services. December 9 Sweet Homes receives $7, 300 cash from the client billed on Decenber 8 . December 10 Sweet Homes pays CalTech Supply $2,809 cash as partial payment for its Decenber 4 - $10,000 purlhase of supplies. Decenber 11 sweet Hones pays 51,388 cash for dividends. Decenber 12 Sweet Homes receives 34,100 cash in advance of providing consulting services to a customer. The conpany" policy is to record fees collected in advance in a balance sheet account. Decenber 13 Sweet Homes pays $4,380 cash (insurance premium) for a 24 -month insurance policy. Coverage begins on Decenber 1 . The conpany's policy is to record all prepaid expenses in a balance sheet account. Decenber 14 Sweet Hones pays 32, e20 cash for supplies. Decenber 15 5weet Homes pays $2,205 cash for December. utilities expense. December 16 sweet Hones pays $1,650 cash in enployee salary for work performed in the Iatter part of December