160 The trial balance of Pacilio Security Services, Incorporated as of January 1, Year 7, had the following normal balances: Cash $ 78,972 Petty Cash 180 Accounts Receivable 33,440 Supplies Prepaid Rent 3,200 Merchandise Inventory (23@$288) 6,440 Land 4.ee Accounts Payable 250 Salaries Payable 1,480 Connon Stock 58,eee Retained Earnings 74,662 During Year 7. Pacilio Security Services experienced the following transactions: 1. Pald the salaries payable from Year 6. 2 Paid $4.800 on March 1, Year 7 for one year's lease in advance on the company van. 3. Pald $8,400 on May 2 Year 7, for one year's office rent in advance. 4. Purchased $550 of supplies on account 5. Pald cash to purchase 105 alarm systems at a cost of $285 each. 6. Pacillo has noticed its accounts receivable balance is growing more than desired and some collection problems exist. It appears that uncollectible accounts expense is approximately 3 percent of total credit sales. Pacilio has decided it will, starting this year, adopt the allowance method of accounting for uncollectible accounts. It will record an adjusting entry to recognize the estimate at the end of the year. 7. In trying to collect several of its delinquent accounts. Pacilio has learned that these customers have either declared bankruptcy or moved and left no forwarding address. These uncollectible accounts amount to $1.900. 8. Sold 110 alarm systems for $63.800. All sales were on account 9. Record the cost of goods sold related to the sale from Event 8 using the FIFO method. 10. Pald the balance of the accounts payable. 11. Pacilio began accepting credit cards for some of ts monitoring service sales. The credit card company charges a fee of 4 percent Total monitoring services for the year were $68.000. Pacillo accepted credit cards for $24.000 of this amount. The other $44.000 was sales on account. 12 On July 1. Year 7. Pacilio replenished the petty cash fund. The fund contained $21 of currency and receipts of $50 for yard mowing. $22 for office supplies expense, and $9 for miscellaneous expenses. 13. Collected the amount due from the credit card company. 14. Pald Installers and other employees a total of $45.000 cash for salaries. 15. Collected $116.800 of accounts receivable during the year. 16. Pald $9,500 of advertising expense during the year. 17. Pald $5,200 of utilities expense for the year. 18. Pald a dividend of $20,000 to the shareholders. Adjustments 19. There was $250 of supplies on hand at the end of the year. 20. Recognized the expired rent for both the van and the office for the year. 21. Recognized the uncollectible accounts expense for the year using the allowance method. 22 Accrued salaries at December 31, Year 7. were $2,100. Requirement General Journal General Ledger Trial Balance Income Statement Changes in SE Balance Sheet Statement of CF Analysis General Journal tab - Prepare the journal entries to record transactions (1) through (18). Then prepare the necessary adjusting entries (19) through (22) to correctly report net income for the period. Then record the closing entries (23) through (25) as of December 31, Year 7. General Ledger tab - Each journal entry is posted automatically to the general ledger. Trial Balance tab - The ending balance values from the General Ledger tab flows through to the Trial Balance tab. Income Statement tab - Use the drop-down to select the accounts properly included on the income statement. Statement of Changes in Stockholders' Equity tab - Prepare the statement of changes in stockholders' equity for the year ended December 31, Year 7. Balance Sheet tab - Prepare a classified Balance Sheet at December 31, Year 7. Statement of Cash flows - Prepare the statement of cash flow for year ended December 31, Year 7. Analysis tab - Use a horizontal statements model to show how each transaction affects the balance sheet, income statement, and statement of cash flows