GLO201 (No Analysis Tab) - Based on the... LO A1, C3, C4, P1, P2, P3 Dec This problem is based on the transactions for the People First Company in your text. Prepare journal entries for each transaction and identify the financial statement impact of each entry. The financial statements are automatically generated based on the journal entries recorded Dec 1 on December 1, Paul Clark forms a consulting business, named People First. People First receives $58,000 cash from Paul Clark as an owner contribution 2 People First pays $3,980 cash for supplies. The company's policy is to record all prepaid expenses in asset accounts. Dec 3 People First pays $42,000 cash for equipment. Dec. 4 People First purchases $9,250 of supplies on credit from a supplier, CalTech Supply. Dec. 5 People First provides consulting services and immediately collects $5,600 cash. Dec. 6 People First pays $2,400 cash for December rent. Dec 7 People First pays $2,100 cash for employee salary. Dec 8 People First provides consulting services of $3,300 and rents its test facilities for $2,000. The customer is billed 55,300 for these services Dec 9 People First receives $5,300 cash from the client billed on December 8, Dec. 10 People First pays calTech Supply $2,300 cash as partial payment for its December 4 $9, 250 purchase of supplies. Dec. 11 Paul Clark withdraws $800 cash from People First for personal use. Dec. 12 People First receives $3,600 cash in advance of providing consulting services to a customer. The company's policy is to record fees collected in advance in a balance sheet account. Dec. 13 People First pays $3,800 cash insurance premium) for a 24-month insurance policy. Coverage begins on December 1. The company's policy is to record all prepaid expenses in a balance sheet account. Dec. 14 People First pays $1,520 cash for supplies. Dec. 15 People First pays $1,705 cash for December utilities expense Dec. 16 People First pays $1,400 cash in employee salary for work performed in the latter part of December GLO201 (No Analysis Tab) - Based on the... LO A1, C3, C4, P1, P2, P3 Dec This problem is based on the transactions for the People First Company in your text. Prepare journal entries for each transaction and identify the financial statement impact of each entry. The financial statements are automatically generated based on the journal entries recorded Dec 1 on December 1, Paul Clark forms a consulting business, named People First. People First receives $58,000 cash from Paul Clark as an owner contribution 2 People First pays $3,980 cash for supplies. The company's policy is to record all prepaid expenses in asset accounts. Dec 3 People First pays $42,000 cash for equipment. Dec. 4 People First purchases $9,250 of supplies on credit from a supplier, CalTech Supply. Dec. 5 People First provides consulting services and immediately collects $5,600 cash. Dec. 6 People First pays $2,400 cash for December rent. Dec 7 People First pays $2,100 cash for employee salary. Dec 8 People First provides consulting services of $3,300 and rents its test facilities for $2,000. The customer is billed 55,300 for these services Dec 9 People First receives $5,300 cash from the client billed on December 8, Dec. 10 People First pays calTech Supply $2,300 cash as partial payment for its December 4 $9, 250 purchase of supplies. Dec. 11 Paul Clark withdraws $800 cash from People First for personal use. Dec. 12 People First receives $3,600 cash in advance of providing consulting services to a customer. The company's policy is to record fees collected in advance in a balance sheet account. Dec. 13 People First pays $3,800 cash insurance premium) for a 24-month insurance policy. Coverage begins on December 1. The company's policy is to record all prepaid expenses in a balance sheet account. Dec. 14 People First pays $1,520 cash for supplies. Dec. 15 People First pays $1,705 cash for December utilities expense Dec. 16 People First pays $1,400 cash in employee salary for work performed in the latter part of December
