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 $\frac{1}{15},\frac{n}{30}.$

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 $\frac{1}{15},\frac{n}{30}.$

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.$