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Do you have the Income Statement? The triel balance of Pecilio Security Services, Inc. as of January 1, Year 7, had the following normal balances:
Do you have the Income Statement?
The triel balance of Pecilio Security Services, Inc. as of January 1, Year 7, had the following normal balances: 578,972 Cash Petty Cash Accounts Receivable Suppl ies Prepaid Rent merchandise Inventory Land Accounts Payable Salaries Payable Cornon Stock Retained Earnings (23 @ 5280) 33, 3, 2ae 4,ae 5,e 74 , 662 During Yeer 7, Pecilio Security Services experienced the following transections: _ Peid the salaries payable from Year 6. 2. Peid $4,800 on Merch 1, Year 7, for one year's lease in advance on the company ven. 3. Peid $8,400 on Mey 2, Year 7, for one year's office rent in advance. 4. Purchased SSSO of supplies on account. S. Peid cesh to purchase IOS elerm systems at e cost of S28S each. 6. Pecilio has noticed its accounts receivable balance is growing more than desired end some collection problems exist. It eppeers thet uncollectible accounts expense is approximately 3 percent of total credit sales. Pocilio has decided it will, starting this year, edopt 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 severel of its delinquent accounts, Pacilio has learned that these customers have either declared bankruptcy or moved end left no fomerding address These uncollectible accounts amount to $1,900. 8. Sold 110 elerm systems for $63,800. All sales were on eccount_ (Compute cost of goods sold using the FIFO cost flow method.) 9. Record the cost of goods sold related to the sele from Event 8 using the FIFO method. 10. Paid the balence of the accounts payeble_ 11_ Pecilio begen accepting credit cards for some of its monitoring service sales. The credit card company charges a fee of 4 percent. Totel monitoring services for the year were S68,OOO. Pecilio accepted credit cards for $24,000 of this amount. The other S44,OOO was sales on account 12. On July 1, Year 7, Pocilio replenished the petty cash fund. The fund contained S21 of currency and receipts of SSO for yard mowing, $22 for office supplies expense, and $9 for miscellaneous expenses. 13. Collected the amount due from the credit card compony 14. Peid installers and other employees e totel of S4S,OOO cash for selaries_ IS. Collected $116,800 of accounts receivable during the year. 16. Peid $9,300 of advertising expense during the year. 17. Peid $5,200 of utilities expense for the year. 18_ Paid e dividend of $20,000 to the shareholders. Adjustments 19. There was $250 of supplies on hand ot the end of the year. 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 seleries et December 31, Year 7, were $2,100.
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