The account balances of Pacilio Security Services, Inc. as of January 1, Year 3, are shown here:

Cash	$	8,900
Accounts Receivable		1,500
Supplies		65
Prepaid Rent		800
Land		4,000
Accounts Payable		1,050
Unearned Revenue		200
Salaries Payable		1,200
Notes Payable		2,000
Common Stock		8,000
Retained Earnings		2,815

During Year 3, Pacilio Security Services experienced the following transactions:

1. Paid the salaries payable from Year 2.
2. Paid the balance of $2,000 on the debt owed to the Small Business Government Agency. The loan is interest-free.
3. Performed $32,000 of security services for numerous local events during the year; $21,000 was on account and $11,000 was for cash.
4. On May 1, paid $3,000 for 12 months rent in advance.
5. Purchased supplies on account for $700.
6. Paid salaries expense for the year of $9,000.
7. Incurred other operating expenses on account, $4,200.
8. On October 1, Year 3, a customer paid $1,200 for services to be provided over the next 12 months.
9. Collected $19,000 of accounts receivable during the year.
10. Paid $5,950 on accounts payable.
11. Paid $1,800 of advertising expenses for the year.
12. Paid a cash dividend to the shareholders of $4,650.
13. The market value of the land was determined to be $5,500 at December 31, Year 3.

Adjustments

14. There was $120 of supplies on hand at the end of the year.
15. Recognized the expired rent.
16. Recognized the earned revenue from Year 2 and transaction no. 8.
17. Accrued salaries were $1,000 at December 31, Year 3.

Requirement General Journal General Ledger Trial Balance Income Statement Changes in SE Balance Sheet Statement of CF Analysis General Journal tab - Prepare the journal entries to record transactions (1) through (13). Then prepare the necessary adjusting entries (14) through (17) to correctly report net income for the period. Then record the closing entries (18) through (20) as of December 31, Year 3. General Ledger tab - Each journal entry is posted automatically to the general ledger. Trial Balance tab - The ending balance values from the General Ledger tab flows through to the Trial Balance tab. Income Statement tab - Use the drop-down to select the accounts properly included on the income statement. Statement of Changes in Stockholders' Equity tab - Prepare the statement of changes in stockholders' equity for the year ended December 31, Year 3. Balance Sheet tab - Prepare a classified Balance Sheet at December 31, Year 3. Statement of Cash flows - Prepare the statement of cash flow for year ended December 31, Year 3. Analysis tab - Use a horizontal statements model to show how each transaction affects the balance sheet, income statement, and statement of cash flows. Requirement General Journal General Ledger Trial Balance: Income Statement Changes in SE Balance Sheet Statement of CF Analysis 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. Unadjusted Pacilio Security Services, Inc. Income Statement For the Year Ended December 31, Year 3 Revenues Total Revenues Expenses Total Expenses 17. Accrued salaries were $1,000 at December 31, Year 3. Requirement General Journal General Ledger Trial Balance Income Statement Changes in SE Balance Sheet Statement of CF Analysis Prepare the statement of changes in stockholders' equity for the year ended December 31, Year 3. You will need to determine and enter the accounts and balances to prepare the Statement of Changes in Stockholders' Equity. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Unadjusted Pacilio Security Services, Inc. Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 3 Beginning Common Stock $ 0 Ending Common Stock Beginning Retained Earnings 0 Ending Retained Earnings Total Stockholders' Equity 2,815 2,815 $ The balance sheet is the accounting equation: Assets = Liabilities + Equity. Each asset and liability account is reported separately on the balance sheet. Choose the appropriate accounts to be reported on the balance sheet. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Unadjusted Pacilio Security Services, Inc. Balance Sheet At December 31, Year 3 Assets Liabilities Stockholders' Equity 0 Indicate whether the transaction increases (+), decreases (-), or increases and decreases (+/-) for each element of the financial statements. Also, in the Cash Flow column, use the letters OA to designate operating activity, IA for investing activity, FA for financing activity. The first transaction is recorded as an example. Pacilio Security Services, Inc. Effect of Transactions on Financial Statements - Year 3 Balance Sheet Income Statement Net = Liabilities + S. Equity Revenue Expenses Income Statement of Cash Flows Transaction Assets 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 23456 15. 16. 17. Statement of CF Analysis