This problem is based on the transactions for the Security First 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, Ken Hughes forms a consulting business, named Security First. Security First receives $76,000 cash from Ken Hughes as an owner contribution. Dec. 2 Security First pays $4,800 cash for supplies. The company's policy is to record all prepaid expenses in asset accounts. Dec. 3 Security First pays $60,000 cash for equipment. Dec. 4 Security First purchases $10,600 of supplies on credit from a supplier, CalTech Supply. Dec. 5 Security First provides consulting services and immediately collects $6,500 cash. Dec. 6 Security First pays $3,300 cash for December rent. Dec. 7 Security First pays $1,800 cash for employee salary. Dec. 8 Security First provides consulting services of $5,100 and rents its test facilities for $3,800. The customer is billed $8,900 for these services. Dec. 9 Security First receives $8,900 cash from the client billed on December 8. Dec. 10 Security First pays CalTech Supply $3,200 cash as partial payment for its December 4 $10,600 purchase of supplies. Dec. 11 Ken Hughes withdraws $1,700 cash from Security First for personal use. Dec. 12 Security First receives $4,500 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 Security First pays $4,700 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 Security First pays $2,420 cash for supplies. Dec. 15 Security First pays $2,605 cash for December utilities expense. Dec. 16 Security First pays $1,850 cash in employee salary for work performed in the latter part of December.

This problem is based on the transactions for the Security First 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, Ken Hughes forms a consulting business, named Security First. Security First receives $76,000 cash from Ken Hughes as an owner contribution Dec. 2 Security First pays $4,800 cash for supplies. The company's policy is to record all prepaid expenses in asset accounts. Dec. 3 Security First pays $60,000 cash for equipment. Dec 4 Security First purchases $10,600 of supplies on credit from a supplier, CalTech Supply. Dec. 5 Security First provides consulting services and immediately collects $6,500 cash. Dec. 6 Security First pays $3,300 cash for December rent. Dec. 7 Security First pays $1,800 cash for employee salary. Dec 8 Security First provides consulting services of $5,100 and rents its test facilities for $3,800. The customer is billed $8,900 for these services. Dec. 9 Security First receives $8,900 cash from the client billed on December 8. Dec. 10 Security First pays CalTech Supply $3,200 cash as partial payment for its December 4 $10,500 purchase of supplies. Dec. 11 Ken Hughes withdraws $1,700 cash from Security First for personal use. Dec. 12 Security First receives $4,500 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 Security First pays $4,700 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 Security First pays $2,420 cash for supplies. Dec. 15 Security First pays $2,605 cash for December utilities expense. Dec. 16 Security First pays $1,850 cash in employee salary for work performed in the latter part of December General Journal General Ledger Income Statement Requirement Trial Balance Balance Sheet St Owners Equity Fery journal entry must keep the accounting equation in balance. Prepare the journal entries for each of the transactions of the in will automatically be posted to the General Dec. 12 Security First receives $4,500 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 Security First pays $4,700 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 Security First pays $2,420 cash for supplies. Dec. 15 Security First pays $2,605 cash for December utilities expense. Dec. 16 Security First pays $1,850 cash in employee salary for work performed in the latter part of December pped Requirement General Journal General Ledger Trial Balance Income Statement St Owners Equity Balance Sheet Book The trial balance is a listing of all account balances from the General Ledger as of a specific date. Click on any individual account balance to return to the General Ledger. The trial balance is only as accurate as the underlying journal entries. If the total debits do not equal the total credits, you have a journal entry that is out of balance. If you have an abnormal ending balance indicated with brackets in the general ledger), you should review the journal entries that affected that account to ensure that the journal entries are correct. Print Show less Dates: Dec 01 to: Dec 31 Security First Trial Balance December 16, 2017 Account Title Debit Credit 0 $ Total Prey 1011 Next w General Journal Balan General Ledger Income Statement Trial Balance St Owners Equity Requirement An income statement reports the changes in equity attributable to the operation of the busi Revenues increase equity, and expenses decrease equity. Security First Income Statement For Month ended December 31, 2017 Revenues $ 0 Consulting revenue 0 Rental revenue Expenses 0 Salaries expense 0 Rent expense Utilities expense 0 Net income Net income or loss is transferred from the income statement to the General Journal Requirement General Ledger Trial Balance Income Statement St Owners Equity Balance Sheet There are four subsets of equity: Investments by owners, withdrawals by owners, revenues and expens compiled in the Capital account at the end of the period. The ending capital balance is transferred to the balance sheet. Security First Statement of Owner's Equity For Month ended December 31, 2017 K Hughes Capital, December 1 2017 s 0 0 Add Net income 0 S 0 K Hughes, Capital, December 31 2017 Ending capital is transferred to the