Guardian Security, Inc. went into business as a corporation in early 2014. For the first few years, the company provided security services only (no merchandise). During 2018, the company decided to begin selling security systems, and to provide 24-hour alarm monitoring services for those systems. The attached pages include the following:

		Page
1.	Guardians trial balance on January 1, 2018.	2
	Note: use the account names listed in the trial balance for items below.
2.	A list of events that occurred during 2018.	3-4
	Note: the online assignment on Canvas includes a spreadsheet with a basic accounting equation grid for you to analyze the effects of these events.
3.	A worksheet to analyze the cost of inventory and the cost of goods sold.	5
4.	A worksheet to prepare appropriate transaction and adjusting journal entries.	5-9
5.	A worksheet to prepare the 2018 Adjusted Trial Balance.	10
6.	Worksheets to prepare the 2018 financial statements.	11-12
7.	A worksheet to prepare the 2018 closing journal entries.	13

Following is Guardians post-closing trial balance at the end of 2017 (also the start of 2018).

Guardian Security, Inc.
Post-Closing Trial Balance as of December 31, 2017
Account	Debit		Credit
Cash		12,500
Accounts receivable		3,500
Supplies		120
Prepaid rent		1,000
Inventory		0
Land		4,000
Accounts payable				0
Salaries payable				1,000
Unearned revenue				900
Common stock				8,000
Retained earnings				11,220
Dividends declared		0
Service revenue				0
Product sales				0
Cost of goods sold		0
Supplies expense		0
Salaries expense		0
Rent expense		0
Utilities expense		0
Advertising expense		0
Other operating expenses		0
TOTALS		21,120		21,120

Following is a list of events that occurred during 2018.

Jan. 6, 2018 Guardian paid the salaries payable from 2017.

Jan. 14, 2018 The company acquired an additional $42,000 cash from the issue of common stock.

Jan. 17, 2018 The company paid $800 cash for supplies to be used by the business.

Jan. 21, 2018 Guardian purchased 50 alarm systems for resale at a cost of $12,160. The alarm systems were purchased on account with the terms 2/10, n/30.

Jan. 29, 2018 Guardian decided to pay $8,000 of its accounts payable balance from event (d) before the discount period expired, so Guardian applied the payment discount to the accounts payable balance. After applying this discount, Guardians inventory cost was $240 for each item.

Jan. 29, 2018 Guardian paid cash to settle part of its accounts payable balance as described in event (e).

Feb. 12, 2018 The company sold and installed 40 alarm systems for a total price of $20,000. Sales of $15,000 were on account, while $5,000 were cash sales. Record the revenue amount.

Feb. 12, 2018 Record the cost to Guardian of each system sold in event (g).

Feb. 17, 2018 The company paid the installers and other employees a total of $9,500 in salaries.

Feb. 28, 2018 The company sold $36,000 of monitoring services to begin Mar. 1. The services are billed to the customers each month.

Mar. 2, 2018 Guardian leased (rented) a business van, paying $4,800 for one years lease in advance.

Mar. 4, 2018 Paid cash to settle additional accounts payable in the amount of $2,780. The payment was made after the discount period expired.

Mar. 11, 2018 Collected $43,000 of accounts receivable.

Apr. 9, 2018 Guardian performed $12,000 of security services for area events; $9,000 was on account and $3,000 was for cash.

May 1, 2018 Paid $7,200 for one years rent on office space in advance.

May 8, 2018 Guardian purchased 20 standard alarm systems for cash at a cost of $250 each.

May 17, 2018 The company paid accounts payable of $980, but not within the discount period (the company uses the gross method).

June 1, 2018 Guardian rented a larger building; paid $6,000 for 12 months rent in advance.

June 5, 2018 Purchased with cash another 25 alarm systems for resale at a cost of $260 each.

June 12, 2018 Guardian purchased on account 30 standard alarm systems at a cost of $265.

June 23, 2018 Sold and installed 60 standard alarm systems for $33,000. Sales of $22,000 were on account, while $11,000 were cash sales.

June 23, 2018 Record the cost of goods sold related to the sale from event (u) using the perpetual FIFO method.

July 1, 2018 Made a full refund to a dissatisfied customer who returned her alarm system. The sale had been a cash sale for $550 with a cost of $260. Record the reversal of revenue.

July 1, 2018 Record the reversal of the $260 cost for event (w).

July 15, 2018 Paid installers and other employees a total of $21,000 cash for salaries.

Aug. 24, 2018 Sold $45,000 of monitoring services during the year. The services are billed to the customers each month.

Sep. 30, 2018 - Recognized $900 of service revenue earned during the first nine months of the year; the cash had been collected during 2017.

Oct. 1, 2018 Sold an additional monitoring service contract for $1,200 for one years service, beginning immediately. The customer paid cash for the full amount of $1,200.

Nov. 13, 2018 Collected $74,000 of accounts receivable.

Nov. 20, 2018 Paid an additional $6,000 to settle some accounts payable; the payment was made after the discount period expired.

Dec. 27, 2018 Paid $3,500 of advertising expense during the year.

Dec. 28, 2018 Paid $2,320 of utilities expense for the year.

Dec. 28, 2018 Paid $13,560 of other operating expenses for the year.

Dec. 29, 2018 Paid a dividend of $15,000 to the shareholders.

Dec. 31, 2018 There was $200 of supplies on hand at the end of the year.

Dec. 31, 2018 Recognized the expired rent from the prior year, van (event (k)) and office space (event (o)) for the year.

Dec. 31, 2018 Recognized the revenue earned during 2018 from transaction (bb).

Dec. 31, 2018 Owed unpaid salaries of $1,200 to employees for their work during December.