Internal Control and Accountin Required . Record the above transactions in general journal form. b. Post the transactions to the T-accounts. c. Prepare a bank reco for the bank reconciliation: (1) Checks written but not paid by the bank, $8,350. (2) A deposit of $6,500 made on December 31 nciliation at the end of the year. The following information is available , 2016, had been recorded but was not shown hecks. (Hint: Use Office Supplies Expense on the bank statement. (3) A debit memo for $55 for a new supply of c account.) (4) A credit memo for $30 for interest earned on the checking account (5) An NSF check for $120. (6) The balance shown on the bank statement was $80,822. d. Record and post any adjustments necessary from the bank reconciliation. e. Prepare a trial balance. f. Prepare an income statement, statement of changes in stockholders' equity, balance sheet, g. Close the temporary accounts to retained earnings. h. Post the closing entries to the T-accounts and prepare a post-closing trial balance. and statement of cash flows Which company is more likely to be able to pay its current liabilit Whisch company carries a greater financial risk? Which company is more prolitable from the stockholders 362 Chapter 6 e. e sales were tmade on Notice that Retained on profitability alone, which company performed better? bi Adjust the balance sheet and income statement for the effects will also need to be Prepare a for the bank Checks A depo g As sume that sales increased 10 percent and that the additional adjustod to kep the balance sheet in bal on the ratios? (3) A debi OMPREHENSIVE PROBLEM (4) A cred (5) An NS The trial balince of Pacilio Security Services Inc. as of sanuary i, 2016, had the normal balances (6) The b $74,210 13,500 200 3,200 6,620 4,000 ,950 900 1,000 50,000 47,880 Cash Accounts Receivable f. Prepare a and state s. Close the h. Post the Prepaid Rent Merchandise Iinvertory (24 $265 1 $260) Accounts Payable Unearned Revenue Salaries Payable Common Stock Retained Eanings During 2016 Pacilio Security Services experienced the following transactions: 1. Paid the salaries payable from 2015 2. On March 1, 2016, Pacilio established a $100 petty cash fund to handle small 3. Paid $4,800 on March 1, 2016, for one year's lease on the company van in advance Paid $7,200 on May 2, 2016, for one year's office rent in advance. 5. Purchased $400 of supplies on account. 6. Purchased 100 alarm systems for $28,000 cash during the year 7. Sold 102 alarm systems for $57,120. All sales were on account. (Compute cost of gds sil using the FIFO cost flow method.) 8. Paid $2,100 on accounts payable during the year 9. Replenished the petty cash fund on August 1. At this time, the petty cash fund had only S7d currency left. It contained the following receipts: office supplies expense, $23, cutting gs $33; and miscellaneous expense, $14. 10. Billed $52,000 of monitoring services for the year. 11. Paid installers and other employees a total of $25,000 cash for salaries. 12. Collected S89,300 of accounts receivable during the year. 13. Paid $3,.600 of advertising expense during the year. 14. Paid $2,500 of utilities expense for the year 15. Paid a dividend of $10,000 to the shareholders Adjustments 16. There was $160 of supplies on hand at the end of the year. 17. Recognized the expired rent for both the van and the office building for the year. 18. Recognized the balance of the revenue earned in 2016 where cash had been 19. Accrued salaries at December 31., 2016, were $1.400. (The for both the van and the office remained the same for 2015 and 2016.) cted in
