Comprehensive Problem The trial balance of Pacilio Security Services, Inc. as of January 1, Year 3, had the following normal balances: 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. and $11,000 Retained Earnings 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. S. 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. Adjustments 14. There was $120 of supplies on hand at the end of the year. 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. Required Required 2. Record the above transactions in general journal form. Page 211 b. Post the transactions to T-accounts and determine the account balances. c. Prepare a trial balance d. Prepare an income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Year 3. tra Credit e. Prepare the closing entries and post to the T-accounts. f. Prepare a post-closing trial balance. 14. $645 Supplies Expense Supplies $645 15. Text Text Text Text 16. Text Text Text Text 17. Text Text Text Text 'Expired rent paid in Year 2: (Jan-Apr... beg bal) Expired rent paid in Year 3: ($3,000 x ) Total expired rent for Year 3 2 Revenue collected in Year 2, but earned in Year 3 (beg bal) Revenue collected in Year 3 and earned in Year 3 ($1,200 x Total unearned revenue earned in Year 3 ) Pacilio Security Services, Inc. T-Accounts for Year 3 Assets Liabilities Stockholders' Equity Cash Accounts Payable Bal. Bal. Common Stock Bal. Bal. Retained Earnings Bal. Unearned Revenue Bal. Bal. Dividends Bal. Bal. Accounts Receivable Bal. Security Service Revenue Salaries Payable Bal. Bal. Bal. Supplies Bal. Bal. Advertising Expense Bal. Notes Payable Bal. Bal. Bal. COMPREHENSIVE PROBLEM - CHAPTER 3 (cont.) c. Pacilio Security Services, Inc. Trial Balance December 31, Year 3 Cash Accounts Receivable