This problem is based on the transactions for the Contracts Plus 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, Kathy Perry forms a consulting business, named Contracts Plus. Contracts Plus receives $54,000 cash from Kathy Perry as an owner contribution. Dec. 2 Contracts Plus pays $3,700 cash for supplies. The company's policy is to record all prepaid expenses in asset accounts. Dec. 3 Contracts Plus pays $38,000 cash for equipment. Dec. 4 Contracts Plus purchases $8,950 of supplies on credit from a supplier, CalTech Supply Dec. 5 Contracts Plus provides consulting services and immediately collects $5,400 cash Dec. 6 Contracts Plus pays $2,200 cash for December rent Dec. 7 Contracts Plus pays $1,900 cash for employee salary Dec. 8 Contracts Plus provides consulting services of $2,900 and rents its test facilities for $1,600. The customer is billed $4,500 for these services Dec. 9 Contracts Plus receives $4,500 cash from the client billed on December 8 Dec. 10 Contracts Plus pays CalTech Supply $2,100 cash as partial payment for its December 4 $8,950 purchase of supplies Dec. 11 Kathy Perry withdraws $600 cash from Contracts Plus for personal use. Dec. 12 Contracts Plus receives $3,400 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 Contracts Plus pays $3,600 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 Contracts Plus pays $1,320 cash for supplies Dec. 15 Contracts Plus pays $1,505 cash for December utilities expense. Dec. 16 Contracts Plus pays $1,300 cash in employee salary for work performed in the latter part of December General Journal General St Owners Equity Balance Sheet FS Impact Ledger Trial Balance Income General Journal Tab For each transaction, prepare the required journal entry on the General Journal tab. List 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 time, click 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 with their balance as of the date selected. Review the income statement and indicate how the income statement is linked to the other financial statements Statement of Owner's Equity Tab - Owner investments and withdrawals, as reported on the trial balance, appear on the statement of owner's equity. Review the statement of owner's equity and indicate how the statement of owner's equity is linked to the other financial statements Balance Sheet Tab - Each asset and liability account balance, as reported on the trial balance, appears on the balance sheet, along with the ending capital balance. Review the balance sheet and then indicate how the balance sheet is linked to the other financial statements Financial Statement Impact Tab - It is important to be able to identify the impact each transaction has on the financial statements. For each of the transactions, indicate the cumulative amount of net income, total assets, total liabilities and total equity that would appear on the financial statements immediately after each transaction is recorded This problem is based on the transactions for the Contracts Plus 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, Kathy Perry forms a consulting business, named Contracts Plus. Contracts Plus receives $54,000 cash from Kathy Perry as an owner contribution. Dec. 2 Contracts Plus pays $3,700 cash for supplies. The company's policy is to record all prepaid expenses in asset accounts. Dec. 3 Contracts Plus pays $38,000 cash for equipment. Dec. 4 Contracts Plus purchases $8,950 of supplies on credit from a supplier, CalTech Supply Dec. 5 Contracts Plus provides consulting services and immediately collects $5,400 cash Dec. 6 Contracts Plus pays $2,200 cash for December rent Dec. 7 Contracts Plus pays $1,900 cash for employee salary Dec. 8 Contracts Plus provides consulting services of $2,900 and rents its test facilities for $1,600. The customer is billed $4,500 for these services Dec. 9 Contracts Plus receives $4,500 cash from the client billed on December 8 Dec. 10 Contracts Plus pays CalTech Supply $2,100 cash as partial payment for its December 4 $8,950 purchase of supplies Dec. 11 Kathy Perry withdraws $600 cash from Contracts Plus for personal use. Dec. 12 Contracts Plus receives $3,400 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 Contracts Plus pays $3,600 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 Contracts Plus pays $1,320 cash for supplies Dec. 15 Contracts Plus pays $1,505 cash for December utilities expense. Dec. 16 Contracts Plus pays $1,300 cash in employee salary for work performed in the latter part of December General Journal General St Owners Equity Balance Sheet FS Impact Ledger Trial Balance Income General Journal Tab For each transaction, prepare the required journal entry on the General Journal tab. List 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 time, click 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 with their balance as of the date selected. Review the income statement and indicate how the income statement is linked to the other financial statements Statement of Owner's Equity Tab - Owner investments and withdrawals, as reported on the trial balance, appear on the statement of owner's equity. Review the statement of owner's equity and indicate how the statement of owner's equity is linked to the other financial statements Balance Sheet Tab - Each asset and liability account balance, as reported on the trial balance, appears on the balance sheet, along with the ending capital balance. Review the balance sheet and then indicate how the balance sheet is linked to the other financial statements Financial Statement Impact Tab - It is important to be able to identify the impact each transaction has on the financial statements. For each of the transactions, indicate the cumulative amount of net income, total assets, total liabilities and total equity that would appear on the financial statements immediately after each transaction is recorded