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.

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.