need income statement
The trial balance of Pacillo Security Services, Incorporated as of January 1, Year 8, had the following normal balances: Cash $93,708 Petty cash 100 Accounts receivable 22,540 Allowance for doubtful accounts 1,334 Supplies 250 Prepaid rent 3,600 Merchandise inventory (18 # $285) 5,130 Land 4,000 Salaries payable 2,100 Common stock 50,000 Retained earnings 75,894 During Year 8, Paclio Security Services experienced the following transactions: 1. Poid the salaries payable from Year 7 2. Purchased equipment and a van for a lump sum of $36,000 cash on January 2, Year 8. The equipment was appraised for $10,000 and the van was appraised for $30,000 3. Paid $9,000 on May 1, Year 8, for one year's office rent in advance. 4. Purchased $300 of supplies on account 5. Purchased 120 alarm systems at a cost of $280 each. Paid cash for the purchase. 6. After numerous attempts to collect from customers, wrote off $2,350 of uncollectible accounts receivable. 7. Sold 115 alarm systems for $580 each. All sales were on account 8. Record the cost of goods sold related to the sale from Event 7 using the FIFO method 9. Billed $86,000 of monitoring services for the year. Credit card sales amounted to $36,000, and the credit card company charged a 4 percent fee. The remaining $50,000 were sales on account. 10. Replenished the petty cash fund on June 30. The fund had $12 cash and receipts of $45 for yard mowing. $28 for office supplies expense, and $11 for miscellaneous expenses 11. Collected the amount due from the credit card company, 12. Paid installers and other employees a total of $52,000 cash for salaries. 13. Collected $115,500 of accounts receivable during the year. 14. Pald $12.500 of advertising expense during the year. 15. Paid $6,800 of utilities expense for the year. 16. Sold the land, which was purchased in 2011, for $12,000. 17. Pald the accounts payable. 18. Paid a dividend of $10,000 to the shareholders. Adjustments 19. Determined that $180 of supplies were on hand at the end of the year. 20. Recognized the expired rent for both the old van and the office building for the year. The lease on the van was not renewed. Rent paid on March 1, Year 7. for the van was $4,800. 21. Recognized uncollectible accounts expense for the year using the allowance method. Pacilio estimates that 3 percent of sales on account will not be collected 22. Recognized depreciation expense on the equipment and the van. The equipment has a five-year life and a $2,000 salvage value. The van has a four-year life and a $6,000 salvage value. The company uses double-declining-balance for the van and straiglze-line for the equipment 23. Accrued salaries at December 31, Year 8, were $1,500 Choose the appropriate accounts to be reported on the income statement. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Post-closing Pacilio Security Services, Incorporated Income Statement For the Year Ended December 31, Year 8 Revenues Total Revenues 0 Expenses Total Operating Expenses Net Operating Income Non-Operating Items 0 Net income
