This problem is based on the transactions for the Star Consulting 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, Jane Stam forms a consulting business, named Stan Consulting. Stan Consulting receives 564,000 cash from Jane Stam as an owner contribution. December 2 Stam Consulting pays $4,200 cash for supplies. The company's policy is to record all prepaid expenses in asset accounts. December 3 Stam Consulting pays $48,000 cash for equipment. December 4 Stan Consulting purchases $9,700 of supplies on credit from a supplier, CalTech Supply. December 5 Stam Consulting provides consulting services and immediately collects $5,900 cash. December 6 Stam Consulting pays $2,700 cash for December rent. December 7 Stam Consulting pays $1,200 cash for employee salary. December 8 Stan Consulting provides consulting services of $3,900 and rents Its test facilities for $2,600. The customer is billed $6,500 for these services. December 9 5ton Consulting receives $6,500 cash from the client billed on December 8. December 10 Stam Consulting pays CalTech Supply $2,600 cash as partial payment for its December 4 $9,700 purchase of supplies. December 11 Jane Stan withdraws $1,100 cash from Stan Consulting for personal use. December 12 Stan Consulting receives $3,900 cash in advance of providing consulting services to customer. The company's policy is to record fees collected in advance in a balance sheet account. December 13 Stam Consulting pays $4,100 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 Stan Consulting pays $1,020 cash for supplies. December 15 Stam Consulting pays 52,005 cash for December utilities expense. December 16 Star Consulting pays $1,550 cash in employee solary for work performed in the latter part of December Journal entry worksheet 2 3 5 6 7 8 16 > On December 1, Jane Stam forms a consulting business, named Stam Consulting. Stam Consulting receives $64,000 cash from Jane Stam as an owner contribution Note: Enter debits before credits. Account Title Debit Credit Date December 01 Record entry Clear entry View general journal Journal entry worksheet On December 2, Stam Consulting pays $4,200 cash for supplies. The company's policy is to record all prepaid expenses in Asset accounts. Note: Enter debits before credits. Date Account Title Debit Credit December 02 Record entry Clear entry View general journal View transaction list Journal entry worksheet ... On December 6, Stam Consulting pays $2,700 cash for December rent. Note: Enter debits before credits Date Account Title Debit Credit December 06 Record entry Clear entry View general journal Saved View transaction list Journal entry worksheet 18 1 2 3 4 5 6 7 8 16 > On December 7, Stam Consulting pays $1,200 cash for employee salary. Note: Enter debits before credits. Date Account Title Debit Credit December 07 Recodony Clear entry View general journal View transaction list Journal entry worksheet .. 16 On December 13, Stam Consulting pays $4,100 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. Note: Enter debits before credits Date Account Title Debit Credit December 13 Record ty CODY View generatorial View transaction list Journal entry worksheet 302 1 9 10 11 12 13 14 . 16 On December 14, Stam Consulting pays $1,820 cash for supplies. Note: Enter debits before credits. Account Title Debit Credit Date December 14 Record entry Clear entry View general journal Sud View transaction list Journal entry worksheet 7:53 1 9 10 11 12 13 14 15 16 > On December 15, Stam Consulting pays $2,005 cash for December utilities expense. Note: Enter debits before credits. Account Title Debit Credit Date December 15 Record erity Clear entry View general journal View transaction list Journal entry worksheet Requirement General Journal General Ledger Trial Balance Statement Income Statement Owners Equity Balance Sheet An Income statement reports the changes in equity attributable to the operation of the business during a specific ti Revenues increase equity, and expenses decrease equity. Stam Consulting Income Statement For Month Ended December 31, 2021 Revenues Consulting revenue $ Rental revenue 0 0 0 Expenses Salaries expense Rent expense Utlities expense 0 0 Net Income Net income or loss is transferred from the income statement to the Requirement General Journal General Ledger Trial Balance Income Statement Statement 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. Stam Consulting Statement of Owner's Equity For Month Ended December 31, 2021 J. Stam Capital, December 1, 2021 0 0 Add Net income 0 0 Stam. Capital, December 31, 2021 Ending capital is transferred to the The balance sheet is the accounting equation: Assets = Liabilities + Equity. Each asset and liability account is reported separately on the balance sheet. Equity includes the ending capital balance from the Statement of Owner's Equity. Stam Consulting Balance Sheet December 31, 2021 Assets $ 0 0 Cash Supplies Prepaid insurance Equipment Accounts receivable 0 0 0 Liabilities $ Accounts payable Unearned consulting revenue 0 0 Equity 0 J. Stam, Capital The balance in Stam's capital account comes from Requirement General Journal General Ledger Trial Balance Income Statement Statement Owners Equity Balance Sheet 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. General Journal