The trial balance of Pacilio Security Services, Inc. as of January 1, Year 5, had the following normal balances:

Cash	$	62,860
Accounts receivable		20,500
Supplies		150
Prepaid rent		2,000
Merchandise inventory (9 @ $240)		2,160
Land		4,000
Accounts payable		980
Salaries payable		1,500
Common stock		50,000
Retained earnings		39,190

During Year 5, Pacilio Security Services experienced the following transactions:

1. Paid the salaries payable from Year 4.
2. On January 15, purchased 20 standard alarm systems for cash at a cost of $250 each.
3. On February 1, paid the accounts payable of $980, but not within the discount period. (The company uses the gross method.)
4. On March 1, leased a business van. Paid $4,800 for one years lease in advance.
5. Paid $7,200 on May 1 for one years rent on the office in advance.
6. Purchased with cash $500 of supplies to be used over the next several months by the business.
7. Purchased with cash another 25 alarm systems on August 1 for resale at a cost of $260 each.
8. On September 5, purchased on account 30 standard alarm systems at a cost of $265.
9. Installed 60 standard alarm systems for $33,000. Sales of $22,000 were on account, while $11,000 were cash sales.
10. Record the cost of goods sold related to the sale from Event 9 using the perpetual FIFO method.
11. Made a full refund to a dissatisfied customer who returned her alarm system. The sale had been a cash sale for $550 with a cost of $260. Record the reversal of revenue.
12. Made a full refund to a dissatisfied customer who returned her alarm system. The sale had been a cash sale for $550 with a cost of $260. Record the reversal of cost.
13. Paid installers and other employees a total of $21,000 cash for salaries.
14. Sold $45,000 of monitoring services during the year. The services are billed to the customers each month.
15. Sold an additional monitoring service for $1,200 for one years service. The customer paid the full amount of $1,200 on October 1.
16. Collected $74,000 of accounts receivable during the year.
17. Paid an additional $6,000 to settle some of the accounts payable.
18. Paid $3,500 of advertising expense during the year.
19. Paid $2,320 of utilities expense for the year.
20. Paid a dividend of $15,000 to the shareholders.

Adjustments

21. There was $200 of supplies on hand at the end of the year.
22. Recognized the expired rent from the prior year, van and office building for the year.
23. Recognized the revenue earned from transaction 15.
24. Accrued salaries at December 31, Year 5, were $1,000.

The trial balance of Pacilio Security Services, Inc. as of January 1, Year 5, had the following normal balances: Cash Accounts receivable Supplies Prepaid rent Merchandise inventory (9 @ $240) Land Accounts payable Salaries payable Common stock Retained earnings $62,860 20,500 150 2,000 2,160 4,000 980 1,500 50,000 39,190 During Year 5, Pacilio Security Services experienced the following transactions: 1. Paid the salaries payable from Year 4. 2. On January 15, purchased 20 standard alarm systems for cash at a cost of $250 each. 3. On February 1, paid the accounts payable of $980, but not within the discount period. (The company uses the gross method.) 4. On March 1, leased a business van. Paid $4,800 for one year's lease in advance. 5. Paid $7,200 on May 1 for one year's rent on the office in advance. 6. Purchased with cash $500 of supplies to be used over the next several months by the business. 7. Purchased with cash another 25 alarm systems on August 1 for resale at a cost of $260 each. 8. On September 5, purchased on acc account 30 standard alarm systems at a cost of $265. 9. Installed 60 standard alarm systems for $33,000. Sales of $22,000 were on account, while $11,000 were cash sales. 10. Record the cost of goods sold related to the sale from Event 9 using the perpetual FIFO method. 11. Made a full refund to a dissatisfied customer who returned her alarm system. The sale had been cash sale for $550 with a cost of $260. Record the reversal of revenue. 12. Made a full refund to a dissatisfied customer who returned her alarm system. The sale had been a cash sale for $550 with a cost of $260. Record the reversal of cost. 13. Paid installers and other employees a total of $21,000 cash for salaries. 14. Sold $45,000 of monitoring services during the year . The services are billed to the customers each month. an additional monitoring service for $1,200 for one year's service. The customer paid the full amount of $1,200 on October 1. 16. Collected $74,000 of accounts receivable during the year. 17. Paid an additional $6,000 to settle some of the accounts payable. 18. Paid $3,500 of advertising expense during the year. 19. Paid $2,320 of utilities expense for the year. 20. Paid a dividend of $15,000 to the shareholders. 15. Sold Adjustments 21. There was $200 of supplies on hand at the end of the year. 22. Recognized the expired rent from the prior year, van and office building for the year. 23. Recognized the revenue earned from transaction 15. 24. Accrued salaries at December 31, Year 5, were $1,000. 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 (20). Then prepare the necessary adjusting entries (21) through (24) to correctly report net income for the period. Then record the closing entries (25) through (27) as of December 31, Year 5. 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 5. Balance Sheet tab - Prepare a classified Balance Sheet at December Year 5. Statement of Cash flows - Prepare the statement of cash flow for year ended December 31, Year 5. 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 Prepare the journal entries to record transactions (1) through (20). Then prepare the necessary adjusting entries (21) through (24) to correctly report net income for the period. Then record the closing entries (25) through (27) as of December 31, Year 5. (If no entry is required for a transaction, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Paid the salaries payable from Year 4. Note: Enter debits before credits. Date General Journal Debit Credit Jan 01 Record entry Clear entry View general journal Requirement General Journal General Ledger Trial Balance Income Statement Changes in SE Balance Sheet Statement of CF Analysis Each journal entry is posted automatically to the general ledger. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Unadjusted General Ledger Account Cash Debit Accounts receivable Debit Credit No. Credit No. Date Jan 01 Balance 62,860 Date Jan 01 Balance 20,500 Merchandise inventory Debit Credit Supplies Debit No. No. Credit Date Jan 01 Balance 2,160 Date Jan 01 Balance 150 Prepaid rent Land No. Debit Credit No. Debit Credit Date Jan 01 Balance 2,000 Date Jan 01 Balance 4,000 Accounts payable Debit Credit Salaries payable Debit Credit No. No. Date Jan 01 Balance 980 Date Jan 01 Balance 1,500 Common stock Debit Credit Retained earnings Debit Credit No. No. Date Jan 01 Balance 50,000 Date Jan 01 Balance 39,190 Statement Requirement General Journal General Ledger Trial Balance Income Statement Changes in SE Balance Sheet Analysis of CF The ending balance values from the General Ledger tab flows through to the Trial Balance below. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Year 2018 represents Year 5 from the problem statement. Unadjusted Pacilio Security Services, Inc. Trial Balance December 31, 2021 Account Title Credit $ Cash Accounts receivable Merchandise inventory Supplies Prepaid rent Land Accounts payable Salaries payable Common stock Retained earnings Total Debit 62.860 20,500 2,160 150 2,000 4,000 980 1,500 50,000 39,190 91,670 $ 91,670 $ 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. However, you will need to calculate and enter the amount of the net income or loss for the period. 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 5 Revenues Total Revenues Cost of goods sold Expenses Total Operating Expenses Net Operating Income 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 5. You will need to determine and enter the accounts and balances to prepare the Statement of Changes in Stockholders' Equity. Pacilio Security Services, Inc. Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 5 Beginning Common Stock Add: Common stock issued Ending Common Stock Beginning Retained Earnings $ 50,000 0 39,190 Ending Retained Earnings Total Stockholders' Equity Requirement General Journal General Ledger Trial Balance Income Statement Changes in SE Balance Sheet Statement of CF Analysis 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 5 Assets Liabilities Stockholders' Equity Requirement General Journal General Ledger Trial Balance Income Statement Changes in SE Balance Sheet Statement of CF Analysis Prepare the statement of cash flow for year ended December 31, Year 5. (Amounts to be deducted should be indicated with a minus sign.) Pacilio Security Services, Inc. Statement of Cash Flows For the Year Ended December 31, Year 5 Cash flows from operating activities: Net cash flow from operating activities Cash flows from investing activities: Net cash flow from investing activities Cash flows from financing activities: Net cash flow from financing activities Ending cash balance Requirement General Journal General Ledger Trial Balance Income Statement Changes in SE Balance Sheet Statement of CF Analysis 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 5 Balance Sheet Income Statement Net = Liabilities + S. Equity Revenue Expenses = Income Statement of Cash Flows Assets Transaction 1. 2. 3 4. 5. 6. 7. 8. 9. 10 11. 12 13 14 15. 16. 17 18. 19 20 21. 22 23. 24. Paid the salaries payable from Year 4. Note: Enter debits before credits. Date General Journal Debit Credit Jan 01 Record entry Clear entry View general journal Requirement General Journal General Ledger Trial Balance Income Statement Changes in SE Balance Sheet Statement of CF Analysis Each journal entry is posted automatically to the general ledger. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Unadjusted General Ledger Account Cash Debit Accounts receivable Debit Credit No. Credit No. Date Jan 01 Balance 62,860 Date Jan 01 Balance 20,500 Merchandise inventory Debit Credit Supplies Debit No. No. Credit Date Jan 01 Balance 2,160 Date Jan 01 Balance 150 Prepaid rent Land No. Debit Credit No. Debit Credit Date Jan 01 Balance 2,000 Date Jan 01 Balance 4,000 Accounts payable Debit Credit Salaries payable Debit Credit No. No. Date Jan 01 Balance 980 Date Jan 01 Balance 1,500 Common stock Debit Credit Retained earnings Debit Credit No. No. Date Jan 01 Balance 50,000 Date Jan 01 Balance 39,190 Statement Requirement General Journal General Ledger Trial Balance Income Statement Changes in SE Balance Sheet Analysis of CF The ending balance values from the General Ledger tab flows through to the Trial Balance below. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Year 2018 represents Year 5 from the problem statement. Unadjusted Pacilio Security Services, Inc. Trial Balance December 31, 2021 Account Title Credit $ Cash Accounts receivable Merchandise inventory Supplies Prepaid rent Land Accounts payable Salaries payable Common stock Retained earnings Total Debit 62.860 20,500 2,160 150 2,000 4,000 980 1,500 50,000 39,190 91,670 $ 91,670 $ 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. However, you will need to calculate and enter the amount of the net income or loss for the period. 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 5 Revenues Total Revenues Cost of goods sold Expenses Total Operating Expenses Net Operating Income 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 5. You will need to determine and enter the accounts and balances to prepare the Statement of Changes in Stockholders' Equity. Pacilio Security Services, Inc. Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 5 Beginning Common Stock Add: Common stock issued Ending Common Stock Beginning Retained Earnings $ 50,000 0 39,190 Ending Retained Earnings Total Stockholders' Equity Requirement General Journal General Ledger Trial Balance Income Statement Changes in SE Balance Sheet Statement of CF Analysis 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 5 Assets Liabilities Stockholders' Equity Requirement General Journal General Ledger Trial Balance Income Statement Changes in SE Balance Sheet Statement of CF Analysis Prepare the statement of cash flow for year ended December 31, Year 5. (Amounts to be deducted should be indicated with a minus sign.) Pacilio Security Services, Inc. Statement of Cash Flows For the Year Ended December 31, Year 5 Cash flows from operating activities: Net cash flow from operating activities Cash flows from investing activities: Net cash flow from investing activities Cash flows from financing activities: Net cash flow from financing activities Ending cash balance Requirement General Journal General Ledger Trial Balance Income Statement Changes in SE Balance Sheet Statement of CF Analysis 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 5 Balance Sheet Income Statement Net = Liabilities + S. Equity Revenue Expenses = Income Statement of Cash Flows Assets Transaction 1. 2. 3 4. 5. 6. 7. 8. 9. 10 11. 12 13 14 15. 16. 17 18. 19 20 21. 22 23. 24.