his problem is based on the transactions for the Smith Engineering 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, Steven Smith forms a consulting business, named Smith Engineering. Smith Engineering receives $32,000 cash from Steven Smith in exchange for common stock. December 2 Smith Engineering pays $2,600 cash for supplies. The company's policy is to record all prepaid expenses in asset accounts. December 3 Smith Engineering pays $28,000 cash for equipment. December 4 Smith Engineering purchases $7,300 of supplies on credit from a supplier, CalTech Supply. December 5 Smith Engineering provides consulting services and immediately collects $4,300 cash. December 6 Smith Engineering pays $1,100 cash for December rent. December 7 Smith Engineering pays $800 cash for employee salary. December 8 Smith Engineering provides consulting services of $1,700 and rents its test facilities for $400. The customer is billed $2,100 for these services. December 9 Smith Engineering receives $2,100 cash from the client billed on December 8. December 10 Smith Engineering pays CalTech Supply $1,000 cash as partial payment for its December 4