B ACCT2010 Chapter 02 - Homewe Tell me what you want to do Home Insert Page Layout Formulas Data Review View Add-ins ACROBAT Team PROTECTED VIEW Be carefules from the Internet can contain viruses. Unless you need to edit, it's safe to stay in Protected View Enable Editing H E2-10A H1 fo E2-10A D E G 1a) Identify which of the following accounts are temporary (will be closed to retained Earnings at the end of the year) and which are permanent 2 3 Account Classification 1 Other Operating Expense 5 2 Ubes Expense 6 3 Retained Eaming 7 4 Sales Expense 5 Land 9 6 Didends 10 7 Service Revenue 11 8 Cash 12 9 Salaries Payable 13 10 Common Stock 14 15 16 17 List and explain the four stages of the accounting cycle Which stage must be first? Which stage is last? 19 29 28 2 20 29 33 40 Comprehet requirements using an Excel spreadsheet. Refer to Chap lor ideas on how to structure the spreadsheet. and Deferrals COMPREHENSIVE PROBLEM The trial balance of Pacilio Security Services Inc. as of January 1, 2012, was as follows: Cash Land Notes Payable Common Stock Retained Earnings $8,500 4,000 5,000 6.000 1,500 During 2012, Pacilio Security Services experienced the following transactions 1. Acquired an additional $2,000 from the issue of common stock 2. Paid $3,000 on the debt owed to the Small Business Government Agency. The loan is interest free 3. Performed $21,000 of security services for numerous local events during the year: 515,000 was on account and $6,000 was cash 4. On May 1, rented a small office building. Paid S2,400 for 12 months' rent in advance. 5. Purchased supplies on account for $650. 6. Paid salaries expense for the year of $8,000. 7. Incurred other operating expenses on account, 56,200. 8. On September 1, 2012, a customer paid 5600 for services to be provided over the next six months. 9. Collected $13,500 of accounts receivable during the year. 10. Paid 55,800 on accounts payable. 11. Paid S1,500 of advertising expenses for the year. 12. Paid a cash dividend to the shareholders of $1,000. 13. The market value of the land was determined to be $5,000 at December 31, 2012. Information for Adjustments 14. There was $65 of supplies on hand at the end of the year. 15. Recognized the expired rent. 16. Recognized the revenue earned from Transaction 8. 17. Accrued salaries were $1,200 at December 31, 2012. Required 1. Record the above transactions in an accounting equation. Provide the appropriate account titles for the amounts shown in the Retained Earnings column. Prepare an income statement, statement of changes in stockholders' oquity, balance sheet, and statement of cash flows for 2012. PL CRM AG Best OLD 900 6000 15 1 ViewSonic Home Insert Formulas Page Layout Data Review File View Add-Ins ACROBAT Team PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit, it's safe to stay in Protected View. A4 f Horizontal Model for Year 2 A D E H 46 47 Total Expenses 48 49 Net Income 50 51 Pacilio Security Services, Inc 52 Statement of Changes in Stockholders' Equity 53 For the Year Ended December 31, Year 2 54 55 Beginning Common Stock 56 Plus: Common Stock Issued 57 Ending Common Stock 58 59 Beginning Retained Earnings 60 Plus: Net Income 61 Less: Dividends 62 Ending Retained Earnings 63 64 Total Stockholders' Equity 65 66 67 Pacilio Security Services, Inc 68 Balance Sheet 69 As of December 31, Year 2 70 71 Assets 72 73 74 75 76 77 Total Assets 78 79 Liabilities 80 81 82 83 84 Total Liabilities 85 86 Stockholders' Equity 87 88 89 Total Stockholders' Equity 90 91 Total Liabilities and Stockholders' Equity 92 93 Pacilio Security Services, Inc Statement of Cash Flows E2-10A Comprehensive Problem Ask me anything View Add-ins Data ACROBAT Team File Home Insert Fomulas Page Layout PROTECTED VIEW Be careful files from the internet can contain viruses. Unless you need to edit, it's saler to stay in Protected View A4 Horizontal Model for Year 2 H D 4 73 74 75 76 77 Total Assets 78 79 Liabilities 80 81 82 83 84 Total Liabilities 85 B6 Stockholders' Equity 87 88 89 Total Stockholders' Equity 90 91 Total Liabilities and Stockholders' Equity 92 93 Pacilio Security Services, Inc. 94 Statement of Cash Flows 95 For the Year Ended December 31, Year 2 96 97 Cash Flows From Operating Activities: 98 99 100 Net Cash Flow from Operating Activities 101 102 Cash Flows From Investing Activities 103 104 Cash Flows From Financing Activities 105 106 107 108 Net Cash Flow from Financing Activities 109 110 Net Increase in Cash 111 Plus: Beginning Cash Balance 112 Ending Cash Balance 113 114 115 116 117 118 119 120 121 E2-10A Comprehensive Problem Ready Ask me anything