13. The market value of the land was determined to be $5,500 at December 31 , Year 3 . ADJUSTMENTS: 14. There was $120 of supplies on hand at the end of the year. 15. Recognized the expired rent (the prepaid rent from the beginning balance and used during Year 3) 16. Recognized the earned revenue from Year 2 and transaction \#8. 17. Accrued salaries of $1,000 at December 31 , Year 3. Required: a) Record the above transactions in general journal form. b) Post the transactions to the T-accounts and determine the account balances. c) Prepare the trial balance. Extra Credit: d) Prepare the four financial statements for Year 3. e) Prepare the closing entries in general journal form and post to the Taccounts. f) Prepare the post-closing trial balance. 2 Revenue collected in Year 2, but earned in Year 3 (beg bal) Revenue collected in Year 3 and earned in Year 3($1,200x, Total unearned revenue earned in Year 3 COMPREHENSIVE PROBLEM - CHAPTER 3 (cont.) COMPREHENSIVE PROBLEM - CHAPTER 3 (cont.) COMPREHENSIVE PROBLEM - CHAPTER 3 (cont.) COMPREHENSIVE PROBLEM- CHAPTER 3 (cont.) Journal Entry Workshop: COMPREHENSIVE PROBLEM - CHAPTER 3 The trial balance of Pacilio Security Services, Inc. as of January 1, Year 3, had the following normal balances: During Year 3, Pacilio Security Services experience the following transactions: 1. Paid the salaries payable from Year 2. 2. Paid the balance of $2,000 on the debt owed. The loan is interest-free. 3. Performed $32,000 of security services for numerous local events during the year; $21,000 was on account and $11,000 was for cash. 4. On May 1, paid $3,000 for 12 month' rent in advance. 5. Purchased supplies on account for $700. 6. Paid salaries expense for the year of $9,000. 7. Incurred other operating expenses on account, $4,200. 8. On October 1, Year 3, a customer paid $1,200 for services to be provided over the next 12 months. 9. Collected $19,000 of accounts receivable during the year. 10. Paid $5,950 on accounts payable. 11. Paid $1,800 of advertising expenses for the year. 12. Paid a cash dividend to the shareholders of $4,650. B. Pacilio Security Services, Ine. T-Aceounts for Year 3 Accounts Receivable Prepaid Rent \begin{tabular}{l|l} \hline Bal. & \\ \hline Bal. & \end{tabular} = Unearned Revenue Bal. Bal. Salaries Payable Bal. Notes Payable Stockholders' Equity Common Stock Bal. Retained Earnings Bal. Dividends Security Service Revenue Advertising Expense Other Operating Expense Rent Expense Salaries Expense Supplies Expense