This problem is based on the transactions for the Finance 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.

December 1 On December 1, Pam Fisher forms a consulting business, named Finance First. Finance First receives $88,890

cash from Pam Fisher in exchange for common stock.

December 2 Finance First pays $5,400 cash for supplies. The company's policy is to record all prepaid expenses in

asset accounts.

December 3 Finance First pays $72,000 cash for equipment.

December 4 Finance First purchases $11,500 of supplies on credit from a supplier, Caltech Supply.

December 5 Finance First provides consulting services and immediately collects $7,100 cash.

December 6 Finance First pays $3,900 cash for December rent.

December 7 Finance First pays $2,400 cash for employee salary.

December 8 Finance First provides consulting services of $6,300 and rents its test facilities for $5,000. The customer

is billed $11,300 for these services.

December 9 Finance First receives $11,300 cash from the client billed on December 8.

December 10 Finance First pays Callech Supply $3,800 cash as partial payment for its December 4 $11,508 purchase of

supplies.

December 11 Finance First pays $2,300 cash for dividends.

December 12 Finance First receives $5,100 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 Finance First pays $5,300 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 Finance First pays $3,020 cash for supplies.

December 15 Finance First pays $3,205 cash for December utilities expense.

December 16 Finance First pays $2,150 cash in employee salary for work performed in the latter part of December.