This problem is based on the transactions for the Sweet HomesCompany in your text. Prepare journal entries for each transactionand identify the financial statement impact of each entry. Thefinancial statements are automatically generated based on thejournal entries recorded. Dec. 1 On December 1, Mike Sweet forms aconsulting business, named Sweet Homes. Sweet Homes receives$68,000 cash from Mike Sweet as an owner contribution. Dec. 2 SweetHomes pays $4,400 cash for supplies. The company's policy is torecord all prepaid expenses in asset accounts. Dec. 3 Sweet Homespays $52,000 cash for equipment. Dec. 4 Sweet Homes purchases$10,000 of supplies on credit from a supplier, CalTech Supply. Dec.5 Sweet Homes provides consulting services and immediately collects$6,100 cash. Dec. 6 Sweet Homes pays $2,900 cash for December rent.Dec. 7 Sweet Homes pays $1,400 cash for employee salary. Dec. 8Sweet Homes provides consulting services of $4,300 and rents itstest facilities for $3,000. The customer is billed $7,300 for theseservices. Dec. 9 Sweet Homes receives $7,300 cash from the clientbilled on December 8. Dec. 10 Sweet Homes pays CalTech Supply$2,800 cash as partial payment for its December 4 $10,000 purchaseof supplies. Dec. 11 Mike Sweet withdraws $1,300 cash from SweetHomes for personal use. Dec. 12 Sweet Homes receives $4,100 cash inadvance of providing consulting services to a customer. Thecompany's policy is to record fees collected in advance in abalance sheet account. Dec. 13 Sweet Homes pays $4,300 cash(insurance premium) for a 24-month insurance policy. Coveragebegins on December 1. The company's policy is to record all prepaidexpenses in a balance sheet account. Dec. 14 Sweet Homes pays$2,020 cash for supplies. Dec. 15 Sweet Homes pays $2,205 cash forDecember utilities expense. Dec. 16 Sweet Homes pays $1,650 cash inemployee salary for work performed in the latter part ofDecember.