This problem is based on the transactions for the Forever Fitness 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, Jim Carey forms a consulting business, named Forever Fitness. Forever Fitness receives $80,000 cash from Jim Carey in exchange for common stock. December 2 Forever Fitness pays $5,000 cash for supplies. The company's policy is to record all prepaid expenses in asset accounts. December 3 Forever Fitness pays $64,000 cash for equipment. December 4 Forever Fitness purchases $10,900 of supplies on credit from a supplier, CalTech Supply. December 5 Forever Fitness provides consulting services and immediately collects $6,700 cash. December 6 Forever Fitness pays $3,500 cash for December rent. December 7 Forever Fitness pays $2,000 cash for employee salary. December 8 Forever Fitness provides consulting services of $5,500 and rents its test facilities for $4,200. The customer is billed $9,700 for these services. December 9 Forever Fitness receives $9,700 cash from the client billed on December 8. December 10 Forever Fitness pays CalTech Supply $3,400 cash as partial payment for its December 4 $10,900 purchase of supplies. December 11 Forever Fitness pays $1,900 cash for dividends. December 12 Forever Fitness receives $4,700 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. December 13 Forever Fitness pays $4,900 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. December 14 Forever Fitness pays $2,620 cash for supplies. December 15 Forever Fitness pays $2,805 cash for December utilities expense. December 16 Forever Fitness pays $1,950 cash in employee salary for work performed in the latter part of December.