Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The trial balance of Pacilio Security Services, Inc. as of January 1, Year 1, was as follows: Cash: $8,500 Land: $4,000 Notes Payable: $5,000 Common

The trial balance of Pacilio Security Services, Inc. as of January 1, Year 1, was as follows:

Cash: $8,500

Land: $4,000

Notes Payable: $5,000

Common Stock: $6,000

Retained Earnings: $1,500

During Year 1, 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 1, 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 1.

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 1.

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 the following for Year 1:

income statement

statement of changes in stockholders' equity

balance sheet

. statement of cash flows

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

2nd edition

134730372, 134730370, 978-0134730370

More Books

Students also viewed these Accounting questions

Question

2. Find five metaphors for communication.

Answered: 1 week ago