Journal Entries
This problem is based on the transactions for the Home Perfection 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 joumal entries recorded 1 On December 1, Caitlin Fields forms a consulting business, naned Home Perfection. Home Perfection receives $72,00e cash from Caitlin Fields as an owner contribution. Dec. Dec. 2 Home Perfection pays $4,600 cash for supplies. The company's policy is to record al1 prepaid expenses in asset accounts Dec. 3 Home Perfection pays $56,eee cash for equipment. 4 Home Perfection purchases $10, 30e of supplies on credit fron a supplier, Calfech Supply Dec. Dec. 5 Home Perfection provides consulting services and inmediately collects $6,380 cash. 6 Home Perfection pays $3,1ee cash for Decenber rent. 7 Home Perfection pays $1,600 cash for esployee salary. 8 Home Perfection provides consulting services of $4,700 and rents its test facilities for $3,400. The customer is billed $8,100 for these services Dec. Dec. Dec. 9 Hone Perfection receives $8,100 cash from the client billed on December 8. Dec. 18 Hone Perfection pays Caltech Supply $3,00e cash as partial payment for its Decesber 4 $10, 30e purchase of supplies Dec. 11 Caitlin Fields withdraws $1,50e cash from Hone Perfection for personal use. Dec. 12 Home Perfection receives $4,300 cash in advance ofF providing consulting services to a customer The conpany's policy is to Dec. record fees collected in advance in a balance sheet account. Dec. 13 Home Perfection pays $4,50e cash (insurance preniun) 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 Home Perfection pays $2,228 cash for supplies Dec. 15 Home Perfection pays $2,405 cash for December utilities expense. Dec. 16 Home Perfection pays $1,758 cash in erployee salary for sork perforned in the latter part of December St Oiners Equity General Journal General Ledger Income Balance Sheet Trial Balance Requirement Statement General Journal Tab For each transaction, prepare the required journal entry on the General Journal tab. Uist debits before credits General Ledger Tab One of the advantages of general ledger software is that posting is done automatically, To see the detail of all transactions that affect a specific account, or the balance in an account at a specific point in tiome, cick on the General Ledger tab. Trial Balance Tab General ledger software also automates the preparation of trial balances. A trial balance lists each account from the General Ledger along with its balance, either a debit or a credit. Total debits should always equal total credits Income Statement Tab-The revenue and expense balances from the trial balance appear on the income statement along veith their balance as of the date selected. Revew the income statement and indicate how the income statement is inked to the other financial statements
