1. Acquired $6,000 from the issue of common stock. 2. Borrowed $5,000 from the Small Business Government Agency. The loan is interest-free. 3. Performed security services at local sporting events during the year for $9,000 cash. 4. Paid salaries expense of $3,000 for the year. 5. Purchased land for $4,000. 6. Paid other operating expenses of $2,000 for the year. 7. Paid a cash dividend to the shareholders of $2,500. 8. The market value of the land was determined to be $4,500 at December 31, Year 1. Assets PACILIO SECURITY SERVICE, INC. Accounting Equation for Year 1 Llabilities Stockholders' Equity Notes Common Retained Payable Stock Earnings Event Account Titles for Retained Earnings Cash Land 1. 2 3 4 + + + + + + + + + + 5. 6. + + + + + + + 7. B Totals Required Required Inc Stmt> PACILIO SECURITY SERVICE, INC. Income Statement For the Year Ended December 31, Year 1 ces PACILIO SECURITY SERVICE, INC. Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 1 Beginning common stock Ending common stock Beginning retained earnings Ending retained earnings Total stockholders' equity PACILIO SECURITY SERVICE, INC. Balance Sheet As of December 31, Year 1 Assets Total assets Liabilities Total liabilities Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity