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Required: Prepare the journal entries to record transactions ( 1 ) through ( 1 6 ) . Then prepare the necessary adjusting entries ( 1

Required:
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.
Question 1
35 pts
Chapter 4 Comprehensive
Problem
The trial balance of Pacilio Security Services Inc. as of January 1,2014, had the following normal balances:
Cash
$14,520
Accounts Receivable
2,960
Supplies
320
Prepaid Rent
1,040
Land
3,280
Unearned Revenue
1,080
Salaries Payable
1,080
Common Stock
6,800
Retained Earnings
13,160
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.
Paid the salaries payable from 2013.
Acquired an additional $9,000 cash from the issue of common stock.
Rented a larger building on May 1; paid $24,400 for 12 months' rent in advance.
Paid $800 cash for supplies to be used over the next several months by the business.
Purchased 40 alarm systems for resale at a cost of $240 each. The
alarm systems were purchased on account with the terms 115,n30.
Returned three of the alarm systems that each had a cost of $240.
Installed 32 alarm systems during the year at a price to customers of
$550 each. The cost of these systems was $240 each. Sales on account were $13,200, and cash sales were $4,400.
Paid the installers and other employees a total of $10,100 in salaries.
Sold $38,900 of monitoring services for the year. The services were billed to customers.
Paid cash on accounts payable of $5,760 less applicable discount, since 10. the payment was made before the discount period expired. Purchase terms were 115,n30.
Paid cash to settle an additional $1,920 of accounts payable after the discount period expired.
Collected $35,100 of accounts receivable during the year.
Performed $10,200 of security services for area events; $6,120 was on 13. account and $4,080 was for cash.
Paid advertising cost of $1,900 for the year.
Paid $1,100 for utilities expense for the year.
Paid a dividend of $13,800 to the shareholders.
Adjustment Information:
17. Supplies of $100 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 $1,400.

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