The trial balance of Pacilio Security Services, Inc. as of January 1, Year 2, was as follows: Cash Land Notes Payable Common Stock Retained Earnings $ 8,500 4,000 5,000 6,000 1,500 During Year 2, Pacilio Security Services experienced the following transactions: 1. Acquired an additional $2,000 from the issue of common stock. 2. Paid $3,000 on the debt owed to the Small Business Government Agency. The loan is interest-free. 3. Performed $21,000 of security services for numerous local events during the year; $15,000 was on account and $6,000 was cash. 4. On May 1, rented a small office building. Paid $2,400 for 12 months' rent in advance. 5. Purchased supplies on account for $650. 6. Paid salaries expense for the year of $8,000. 7. Incurred other operating expenses on account, $6,200. 8. On September 1, Year 2, a customer paid $600 for services to be provided over the next six months. 9. Collected $13,500 of accounts receivable during the year. 10. Paid $5,800 on accounts payable. 11. Paid $1,500 of advertising expenses for the year. 12. Paid a cash dividend to the shareholders of $1,000. 13. The market value of the land was determined to be $5,000 at December 31, Year 2. Information for Adjustments 14. There was $65 of supplies on hand at the end of the year. 15. Recognized the expired rent. 16. Recognized the revenue earned from Transaction 8. 17. Accrued salaries were $1,200 at December 31, Year 2. Required a. Record the above transactions in an accounting equation. Provide the appropriate account titles for the amounts shown in the Retained Earnings column. b. Prepare an income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Year 2. Check my work Event Cash Accounts Receivable Supplies Prepaid Rent + Land Accounts Payable Salaries Payable Unearned Revenue Notes Payable Common Stock + Retained Earnings B. Bal. + + + 1. + + + + + + + + 2. + + + + + + 3. + + + + + + + 4. + + + + + + + 5. + + + + + + + 6. + + + + + + + + + 7 + + + + + 8. + + + + + + + + + 9. + + + + + + 10. + + + + + + + + 11. + + + + + + + + 12. + + + + + + 13 + + + + + + + + 14. + + + + + + 15. + + + + + + + + 16. + + + + + + + 17. + + + + + + Bal. 0 + + 10 0 + + 10 0 0 = + 0 0 + 0 + + 10 + 0 0 a. Record the above transactions in an accounting equation. Provide the appropriate account titles for the amounts shown in the Retained Earnings column. b. Prepare an income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Year 2 Complete this question by entering your answers in the tabs below. Required a Required B Inc Required B Required B Bal Required B Stmt Sheet Stmt of Cash Stkholders Eq Prepare an income statement for Year 2. Flows PACILIO SECURITY SERVICES, INC. Income Statement For the Year Ended December 31, Year 2 Expenses Total expenses 0 0 Check my work a. Record the above transactions in an accounting equation. Provide the appropriate account titles for the amounts shown in the Retained Earnings column. b. Prepare an income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Year 2. Complete this question by entering your answers in the tabs below. Required B Bal Stmt of Cash Required B Inc Required B Required B Required A Stmt Stmt Sheet Stkholders Eq Flows Prepare a statement of changes in stockholders' equity for Year 2. PACILIO SECURITY SERVICES, INC. Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 2 Beginning common stock $ 0 Ending common stock Beginning retained earnings Ending retained earnings Total stockholders' equity $ 0 PACILIO SECURITY SERVICES, INC. Balance Sheet As of December 31, Year 2 Assets Total assets $ 0 Liabilities $ 0 Total liabilities Stockholders' equity Total stockholders' equity 0 PACILIO SECURITY SERVICES, INC. Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows from operating activities: $ 0 Net cash flow from operating activities Cash flows from investing activities: Cash flows from financing activities: Net cash flow from financing activities 0 Ending cash balance 0