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Chapter 03 (Static) Comprehensive Problem The trial balance of Pacilio Security Services, Incorporated as of January 1, Year 3, had the following normal balances: During Year 3. Pacilio Security Services experienced the following transoctions: 1. Paid the salaries panable 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. Purchistd supplies on account for $700. 6. Paid salaries expense for the year of $9,000 7. Incurred other operoting 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 Collectad stionon cr accounte recelyable diving the year 10. Paid $5,950 on accounts payable 17. Paid $1,800 of advertising expenses for the yeat. 12. Paid a cosh dividend to the shareholders of $4,650 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. 15. Recognized the expired rent. 16. Recognized the earned revenue from Year 2 and transaction number 8. 17. Accrued salaries were $1,000 at December 31 , Year 3. Requirement General Journal tab - Prepare the journal entries to record transactions (1) through (13). Then prepare the necessary adjusting entries (14) through ( 17) to correctly report net income for the period. Then record the ciosing entries ( 18 ) through (20) as of December 31 , Year 3 . General Ledger tab - Each journal entry is posted automatically to the general ledger. Trial Balance tab. The ending bafance values from the General Ledger tab fows through to the Trial Balance tab. Income Statement tab - Use the drop-down to select the accounts properfy included on the income statement. Statement of Changes in Stockholders' Equity tab - Prepare the statement of changes in-stockholders' equity for the year ended Decerpber 31, Year 3. Balance Sheet t,b - Prepare a classified Ealance 5 heet at December 31, Year 3. Statement of Cash flows - Prepare the statement of cash flow for year ended December 31, Year 3 . Analysis tab - Use a horizontal statements model to show how each transaction affects the balance shent, income statement, and statement of cash flows. Prepare the journal entries to record transactions (1) through (13). Then prepare the necessary adfusting entries (14) through (17) to correctiy report net income for the period. Then record the closing entries (18) through (20) as of December 31 , Year 3 . (1f no entry is required for a transaction; select "No journal entry required" in the first account field.) Journal entry worksheet General Ledger Account The ending balance values from the General Ledger tab flows through to the Trial Balance below. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Year 2020 represents Year 3 from the problem statement. Choose the appropriate accounts to be reported on the income statement. However, you will need to calculate and enter thi amount of the net income or loss for the period. The unadjusted, adjusted, or post-closing balances wilf appear for each account, based on your selection. Prepare the statement of changes in stockholders' equity for the year ended December 31, Year 3. You will need to determine and enter the accounts and balances to prepare the Statement of Changes in Stockholders' Equity. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. PACILIO SECURITY SERVICES, INC. Balanoe Sheet At December 31, Year 3 Assets Changes in SE Statement of CF Prey 1 of 1 Next \begin{tabular}{|c|c|c|c|c|c|c|c|c|} \hline \multirow[b]{4}{*}{ Transaction } & \multicolumn{6}{|c|}{ PACILIO SECURITY SERVICES, INC. } & & \\ \hline & \multicolumn{6}{|c|}{ Effect of Transactions on Financial Statements - Year 3} & & \\ \hline & \multicolumn{3}{|c|}{ Balance Sheet } & \multicolumn{3}{|c|}{ Income Statement } & \multirow{2}{*}{\multicolumn{2}{|c|}{\begin{tabular}{l} Statement of Cash \\ Flows \end{tabular}}} \\ \hline & Assets & Liabilitios & + 5. Equity & Revenue - & - Expenses = & \begin{tabular}{c} Net \\ Income \end{tabular} & & \\ \hline 1. & - & - & & & & & - & OA \\ \hline 2. & & & 8 & & 8 & " & & \\ \hline 3. & & & & & L & & & \\ \hline 4. & & D & & & & & & \\ \hline 5. & & & & & & & & \\ \hline 6. & & & & & & & & \\ \hline 7. & & & & & & & & \\ \hline 8. & & & & & & 7 & & \\ \hline 8. & & & 7 & & & & & \\ \hline 10. & & & & & & & & \\ \hline 11. & & & 8 & & 7 & & & \\ \hline 12. & & & r & & F & & & \\ \hline 13. & & & & & & & & \\ \hline 14. & & & & & 7 & & & \\ \hline 15. & & & & & E & & & \\ \hline 16. & & & & & F & & & \\ \hline 17. & & & 1 & & L & & & \\ \hline \end{tabular} statement of CF Prev 1 of 1 Next