Prepare the journal entries to record transactions $(1)$ through $(16).$ Then prepare the necessary adjusting entries $(17)$ through $(20)$ to correctly report net income for the period.

Post each journal entry to T$-$accounts in the general ledger.

Prepare a trial balance.

Prepare a multiple$-$step income statement for the year ended December $31,2014.$

Prepare the statement of changes in stockholders$$ equity for the year ended December $31,2014.$

Prepare a balance sheet at December $31,2014.$

Prepare the statement of cash flows for year ended December $31,2014.$

Record the closing entries as of December $31,2014,$ in the general journal.

Post each closing entry to T$-$accounts in the general ledger.

Prepare a post$-$closing trial balance.

Flag question: Question $1$

Chapter $4$ Comprehensive Problem

The trial balance of Pacilio Security Services Inc. as of January $1,2014,$ had the following normal balances:

Cash $$11,280$

Accounts Receivable $3,880$

Supplies $320$

Prepaid Rent $1,160$

Land $3,280$

Unearned Revenue $920$

Salaries Payable $800$

Common Stock $7,880$

Retained Earnings $10,320$

In $2014,$ Pacilio Security Services decided to expand its business to sell security systems and offer $24-$hour alarm monitoring services. It plans to phase out its current service of providing security personnel at various events. The following summary transactions occurred during $2014.$

$1.$ Paid the salaries payable from $2013.$

$2.$ Acquired an additional $$8,600$ cash from the issue of common stock.

$3.$ Rented a larger building on April $1$; paid $$20,400$ for $12$ months$$ rent in advance.

$4.$ Paid $$1,000$ cash for supplies to be used over the next several months by the business.

$5.$ Purchased $45$ alarm systems for resale at a cost of $$200$ each. The alarm systems were purchased on account with the terms $2/15,$ n$/30.$

$6.$ Returned three of the alarm systems that each had a cost of $$200.$

$7.$ Installed $36$ alarm systems during the year at a price to customers of $$400$ each. The cost of these systems was $$200$ each. Sales on account were $$10,800,$ and cash sales were $$3,600.$

$8.$ Paid the installers and other employees a total of $$10,500$ in salaries.

$9.$ Sold $$35,700$ of monitoring services for the year. The services were billed to customers.

$10.$ Paid cash on accounts payable of $$5,400$ less applicable discount, since the payment was made before the discount period expired. Purchase terms were $2/15,$ n$/30.$

$11.$ Paid cash to settle an additional $$1,800$ of accounts payable after the discount period expired.

$12.$ Collected $$45,000$ of accounts receivable during the year.

$13.$ Performed $$13,500$ of security services for area events; $$8,100$ was on account and $$5,400$ was for cash.

$14.$ Paid advertising cost of $$1,600$ for the year.

$15.$ Paid $$1,200$ for utilities expense for the year.

$16.$ Paid a dividend of $$12,200$ to the shareholders.

Adjustment Information:

$17.$ Supplies of $$150$ were on hand at the end of the year.

$18.$ Recognized the expired rent for the year.

$19.$ Recognized the balance of the unearned revenue; cash was received in $2013.$

$20.$ Accrued salaries at December $31,2014,$ were $$1,300.$