The trial balance of Pacilio Security Services, Inc as of January 1, Year 4, had the following normal balances Cash $ 12,500 Accounts Receivable 3,500 Supplies 120 Prepaid Rent 1,000 Land 4,000 Unearned Revenue 900 Salaries Payable 1,000 Common Stock 8,000 Retained Earnings 11,220 In Year 4, 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 Year 4 Paid the salaries payable from Year 3 Acquired an additional $42,000 cash from the issue of common stock Rented a larger building on May 1 paid $6,000 for 12 months rent in advance Paid $800 cash for supplies to be used over the next several months by the business Purchased alarm systems for resale at a cost of $12,000 The alarm systems were purchased on account with the terms 2 10, n 30 Returned alarm systems that had a cost of $240 Installed alarm systems during the year for a total sales amount of $20,000 Sales of $15,000 were on account, while $5,000 were cash sales The cost of the systems sold in Event 7 amounted to $9,440 Paid the installers and other employees a total of $9,500 in salaries Sold $36,000 of monitoring services for the year The services are billed to the customers each month Paid cash on accounts payable The payment was made before the discount period expired At the time of purchase, the inventory has a cost of $8,000 and was purchased under the terms 2 10, n 30 Paid cash to settle additional accounts payable in the amount of $2,780 The payment was made after the discount period expired Collected $43,000 of accounts receivable during the year Performed $12,000 of security services for area events $9,000 was on account and $3,000 was for cash Paid advertising cost of $1,620 for the year Paid $1,100 for utilities expense for the year Paid a dividend of $12,000 to the shareholders Adjustment Information Supplies of $150 were on hand at the end of the year Recognized the expired rent for the year Recognized the balance of the unearned revenue cash was received in Year 3 Accrued salaries at December 31, Year 4, were $1,500 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 Create an analysis for the problem above Pacilio Security Services, Inc Effect of Transactions on Financial Statements Year 4 Transaction Balance Sheet Income Statement Statement of Cash Flows Assets Liabilities S Equity Revenue Expenses Net Income 1 OA

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The trial balance of Pacilio Security Services, Inc. as of January 1, Year 4, had the following normal balances: Cash $ 12,500 Accounts Receivable 3,500

The trial balance of Pacilio Security Services, Inc. as of January 1, Year 4, had the following normal balances:


Cash	$	12,500
Accounts Receivable		3,500
Supplies		120
Prepaid Rent		1,000
Land		4,000
Unearned Revenue		900
Salaries Payable		1,000
Common Stock		8,000
Retained Earnings		11,220

In Year 4, 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 Year 4:

Paid the salaries payable from Year 3.
Acquired an additional $42,000 cash from the issue of common stock.
Rented a larger building on May 1; paid $6,000 for 12 months rent in advance.
Paid $800 cash for supplies to be used over the next several months by the business.
Purchased alarm systems for resale at a cost of $12,000. The alarm systems were purchased on account with the terms 2/10, n/30.
Returned alarm systems that had a cost of $240.
Installed alarm systems during the year for a total sales amount of $20,000. Sales of $15,000 were on account, while $5,000 were cash sales.
The cost of the systems sold in Event 7 amounted to $9,440.
Paid the installers and other employees a total of $9,500 in salaries.
Sold $36,000 of monitoring services for the year. The services are billed to the customers each month.
Paid cash on accounts payable. The payment was made before the discount period expired. At the time of purchase, the inventory has a cost of $8,000 and was purchased under the terms 2/10, n/30.
Paid cash to settle additional accounts payable in the amount of $2,780. The payment was made after the discount period expired.
Collected $43,000 of accounts receivable during the year.
Performed $12,000 of security services for area events; $9,000 was on account and $3,000 was for cash.
Paid advertising cost of $1,620 for the year.
Paid $1,100 for utilities expense for the year.
Paid a dividend of $12,000 to the shareholders.

Adjustment Information

Supplies of $150 were on hand at the end of the year.
Recognized the expired rent for the year.
Recognized the balance of the unearned revenue; cash was received in Year 3.
Accrued salaries at December 31, Year 4, were $1,500.

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.

Create an analysis for the problem above.

Pacilio Security Services, Inc.

Effect of Transactions on Financial Statements - Year 4

Transaction

Balance Sheet

Income Statement

Statement of Cash Flows

Assets

Liabilities

S. Equity

Revenue

Expenses