The financial statements report the cumulative impact of all transactions recorded as of the financial statement da cumulative amount of a) Net Income (Loss), b) Total Assets, c) Total Liabilities, and d) Total Equity that would the financial statements immediately after each transaction is recorded. (Hint: You can check your answers b the date on the trial balance tab.) The first 3 transactions are completed for you! Transaction: Net Income Total Assets Total Liabilities Total Equity $ 0 $ 72,000 $ 0 $ 72,000 0 0 72,000 72,000 72,000 72,000 0 0 ces Where can you go to find each of your answers? December 1 - Home Perfection receives 572,000 cash 1 from Caitlin Fields in exchange for common stock December 2 - Pays $4,600 cash for supplies December 3 - Pays $56.000 cash for equipment. December 4 - Purchases $10,300 of supplies on credit from a supplier December 5 - Provides consulting services and Immediately collects $6,300 cash December 6 - Pays $3,100 cash for December rent December 7 - Pays 51,600 cash for employee salary December 8 - Provides consulting services of $4.700 and rents its test facilities for $3,200. The customer is billed $8,100 for these services December 9 - Receives $8,100 cash from the client billed on December 8 December 10 - Pays CalTech Supply $3,000 cash toward the payable from December December 11 - Home Perfection pays $1,500 cash for dividends December 12 - Receives 54,300 cash in advance of providing consulting services to a customer December 13 - Pays $4,500 cash (insurance premium) for a 24-month insurance policy. Coverage begins on December 1 December 14 - Pays $2,220 cash for supplies December 15- Pays $2,405 cash for December utilities expense December 16 - Pays $1.750 cash in employee salary for work performed in the latter part of December 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 journal entries recorded December 1 On December 1. Coltiin Felds forms a consulting business, naned Home Perfection. Mone Peetection receives $72,000 cash from Caitlin Field exchange for common stock December 2 Home Perfect lon pays $4,600 cash for supplies. The company's policy is to record all prepaid expense asset accounts December 3 Home Perfection pay $56.000 cash for equipment. December 4 Home Perfection Porclare $10,300 of supplies on credit fron a supplier CalTech Supply December 5 Home Perfection provides consulting services and immediately collects $6,300 cash December 6 Home Perfection pays 100 cash for December rent December 7 Home Perfection poys 60 cash for employee salary December 8 Home Perfection provides consulting services of $4,700 and rents Ite test facilities or 400. The custom 100 for the service December 9 Home Perfection receive $8,100 cash from the client billed on December 0 December 10 Home Perfection Pay alrech Supply $3.000 cash as partial payment for its December 4 310,300 purchase of supplies December 11 Home Perfection pays $1.500 cash for dividends. December 12 Hone Perfection receive 54,300 cash in advance of providing consulting services to a customer. The company policy to record fees collected in advance in a balance sheet account. December 13 Home Perfection pays $4,500 cash insurance preniun) for 24-honth Insurance policy. Coverage begins on December The company's policy is to record all prepaid expenses in a balance sheet account. December 14 Home Perfection pays $2,220 cash for supplies. December 15 Home Perfection pays $2,405 cash for December utilities expense. December 16 Home Perfection pays $1,750 cash in employee salary for work performed in the latter part of December
