Cash $ $12,500$

Accounts Receivable $3,500$

Supplies $120$

Prepaid Rent $1,000$

Land $4,000$

Unearned Revenue $900$

Salaries Payable $1,000$

Common Stock $8,000$

Retained Earnings $11,220$

$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

In Year $4,$ Pacilio Security Services decided to expand its business to sell security systems and offer $24-$hour alarm monitoring services. It plans to phase out its current service of providing security personnel at various events. The following summary transactions occurred during Year $4$:

$1.$ Paid the salaries payable from Year $3.$

$2.$ Acquired an additional $$42,000$ cash from the issue of common stock.

$3.$ Rented a larger building on May $1$; paid $$6,000$ for $12$ months$$ rent in advance.

$4.$ Paid $$800$ cash for supplies to be used over the next several months by the business.

$5.$ Purchased alarm systems for resale at a cost of $$12,000.$ The alarm systems were purchased on account with the terms $2/10,$ n$/30.$

$6.$ Returned alarm systems that had a cost of $$240.$

$7.$ Installed alarm systems during the year for a total sales amount of $$20,000.$ Sales of $$15,000$ were on account, while $$5,000$ were cash sales.

$8.$ The cost of the systems sold in Event $7$ amounted to $$9,440.$

$9.$ Paid the installers and other employees a total of $$9,500$ in salaries.

$10.$ Sold $$36,000$ of monitoring services for the year. The services are billed to the customers each month.

$11.$ Paid cash on accounts payable. The payment was made before the discount period expired. At the time of purchase, the inventory had a cost of $$8,000.$

$12.$ Paid cash to settle additional accounts payable. The payment was made after the discount period expired. At the time of purchase, the inventory had a cost of $$2,780.$

$13.$ Collected $$43,000$ of accounts receivable during the year.

$14.$ Performed $$12,000$ of security services for area events; $$9,000$ was on account and $$3,000$ was for cash.

$15.$ Paid advertising cost of $$1,620$ for the year.

$16.$ Paid $$1,100$ for utilities expense for the year.

$17.$ Paid a dividend of $$12,000$ to the shareholders.

Adjustment Information

$18.$ Supplies of $$150$ were on hand at the end of the year.

$19.$ Recognized the expired rent for the year.

$20.$ Recognized the balance of the unearned revenue; cash was received in Year $3.$

$21.$ Accrued salaries at December $31,$ Year $4,$ were $$1,500.$