To find the first term and common difference of the arithmetic series, the equations for the sum of the first n terms are applied. Given that the sum of the first 4 terms is -8 and the sum of the first 5 terms is 85, two equations can be set up using the formula Sn = n/2 (2a + (n-1)d). Solving these equations simultaneously reveals the values for the first term (a) and the common difference (d). The calculations lead to the conclusion that the first term is -12 and the common difference is 5. This solution effectively demonstrates the application of arithmetic series formulas in problem-solving.