Cash Accounts Receivable Supplies Prepaid Rent Land Accounts Payable Unearned Revenue Salaries Payable Notes Payable Common Stock Retained Earnings $ 8,900 1,500 65 800 4,000 1,050 200 1,200 2,000 8,000 2,815 During Year 3, Pacilio Security Services experienced the following transactions: 1. Paid the salaries payable from Year 2. 2. Paid the balance of $2,000 on the debt owed to the Small Business Government Agency. 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 months' 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. 13. The market value of the land was determined to be $5,500 at December 31, Year 3. 14. There was $120 of supplies on hand at the end of the year. 15. Recognized the expired rent. 16. Recognized the earned revenue from Year 2 and transaction no. 8. 17. Accrued salaries were $1,000 at December 31, Year 3. Journal entry worksheet Paid the salaries payable from Year 2. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Cash Accounts receivable No. Debit Credit No. Date Debit Credit Date Jan 01 Balance 8,900 Balance 1,500 Jan 01 Supplies Debit Prepaid rent Debit No. Date Credit No. Date Credit Balance Balance 65 Jan 01 Jan 01 800 Land Accounts payable Debit Credit No. Debit Credit No. Date Jan 01 Balance 4,000 Date Jan 01 Balance 1,050 Unearned revenue Salaries payable Debit Credit No. Date No. Debit Credit Balance 1,200 Date Jan 01 Balance 200 Jan 01 Notes payable Debit Credit Common stock Debit Credit No. Date No. Balance 2,000 Date Jan 01 Balance 8,000 Jan 01 Retained earnings No. Date Debit Credit Balance Jan 01 2,815 Unadjusted Pacilio Security Services, Inc. Income Statement For the Year Ended December 31, Year 3 Revenues Total Revenues Expenses Total Expenses Unadjusted Pacilio Security Services, Inc. Income Statement For the Year Ended December 31, Year 3 Revenues Total Revenues Expenses Total Expenses Unadjusted Pacilio Security Services, Inc. Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 3 Beginning Common Stock Ending Common Stock Beginning Retained Earnings 0 2,815 Ending Retained Earnings Total Stockholders' Equity Pacilio Security Services, Inc. Balance Sheet At December 31, Year 3 Assets Liabilities Stockholders' Equity Pacilio Security Services, Inc. Statement of Cash Flows For the Year Ended December 31, Year 3 Cash flows from operating activities: Net cash flow from operating activities Cash flows from investing activities: Net cash flow from investing activities Cash flows from financing activities: Net cash flow from financing activities Endina cash balance Pacilio Security Services, Inc. Effect of Transactions on Financial Statements - Year 3 Balance Sheet Income Statement Net = Liabilities + S. Equity Revenue Expenses Income Statement of Cash Flows Transaction Assets 1. OA 2. 3 4. 5. 6. 7 8. 9. 10. 11 12. 13 14. 15 16. 17