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 Decenber 1, ken Rughes forms a consulting business, named security First. Security First receives $76,000 eash from Ken Hughes in exchange for common stock. Dec. 2 security rirst pays 4,800 cash for supplies. The company's policy is to record all prepaid expenses in asset ped Dec. 3 Security Pirst pays $60,000 eash for equipnent. Dec. 4 Security Pirst purehases $10,600 of supplies on eredit from a supplier, CalTech supply. Dec. 5 Security Pirst provides consulting services and immediately collects 56,500 eash. Dec. 6 Security Pirst pays $3,300 cash for Decenber rent. Dec. 7 Security First pays $1,800 cash for employee salary. Dee. Security rirst provides consulting services of $5,100 and rent, its test tacilities for S,100. the cuteer i. billed $8,900 for these services supplies poliey is to record fees collected in advance in a balance sheet account. 1. The company's poliey is to record all prepaid expenses in a balance sheet account. Dec. 9 Security Pirst receives $8,900 eash from the client billed on December 8. Dec. 10 Security Pirst pays caltech Supply $3,200 cash as partial payment for its December 4 $10,600 purchase of Dec. 11 Security Pirst pays $1,700 cash for dividends. Dec. 12 Security Pirst receives $4,500 cash in advance of providing conaulting services to a custoner. The company' 13 Seeurity Pirst pays 54,700 cash (insurance preniun) tor a 24-sonth insurance policy. Coverage begins on December bec. Dec. 14 Security Pirst pays 52,420 cash for supplies Dec. 15 Security Tirst pays $2,605 cash for Decenber utilities expense. Dec. 16 Security Pirst pays 1,850 cash in enployee salary for work pertormed in the latter part of Decenber. General ournal Ledger Trial BalanceIce St Income Retained Balance Sheet FSmpact Statement Earnings 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 General Ledger tab. Trial Balance Tab - General ledger software also automates the preparation of trial balances. A trial balance lists each account from specific point in time, click on the the General Ledger, along with its balance, either a debit or a credit. Total debits should always equal total - The revenue and expense balances from the trial balance appear on the income statement, Income Statement Tab along with their balance as of the date selected. Review the income statement and indicate how the income statement is inked to the other financial statements. Statement of Retained Earnings Tab- Beginning retained earnings plus (minus) net income (loss) for the period less dividends. Review the statement of Retained earnings and indicate how the statement is linked to the other financial Balance Sheet Tab-Each asset and liability account balance, as reported on the trial balance, appears on the baiance sheet, along with the equity balance. Review the balance sheet and then indicate how the balance sheet is linked to the Financial Statement Impact Tab-It is important to be able to identry the mpact each transition has on the financial statements. For each of the transactions, indicate the cumulative amount of net income, total total equity that would appear on the financial statements immed ately after each transaction is reconded General Jsurnat