The trial balance of Pacilio Security Services, Inc. as of January 1, Year 6, had the following normal balances:

Cash	$	74,210
Accounts Receivable		13,500
Supplies		200
Prepaid Rent		3,200
Merchandise Inventory (24 @ $265; 1 @ $260)		6,620
Land		4,000
Accounts Payable		1,950
Unearned Revenue		900
Salaries Payable		1,000
Common Stock		50,000
Retained Earnings		47,880

During Year 6, Pacilio Security Services experienced the following transactions:

1. Paid the salaries payable from Year 5.
2. On March 1, Year 6, Pacilio established a $100 petty cash fund to handle small expenditures.
3. Paid $4,800 on March 1, Year 6, for a one-year lease on the company van in advance.
4. Paid $7,200 on May 2, Year 6, for one years office rent in advance.
5. Purchased $400 of supplies on account.
6. Purchased 100 alarm systems for $28,000 cash during the year.
7. Sold 102 alarm systems for $57,120. All sales were on account.
8. Record the cost of goods sold related to the sale from Event 7 using the FIFO method.
9. Paid $2,100 on accounts payable during the year.
10. Replenished the petty cash fund on August 1. At this time, the petty cash fund had only $7 of currency left. It contained the following receipts: office supplies expense, $23; cutting grass, $55; and miscellaneous expense, $14.
11. Billed $52,000 of monitoring services for the year.
12. Paid installers and other employees a total of $25,000 cash for salaries.
13. Collected $89,300 of accounts receivable during the year.
14. Paid $3,600 of advertising expense during the year.
15. Paid $2,500 of utilities expense for the year.
16. Paid a dividend of $10,000 to the shareholders.

Adjustment

17. There was $160 of supplies on hand at the end of the year.
18. Recognized the expired rent for both the van and the office building for the year. (The rent for both the van and the office remained the same for Year 5 and Year 6.)
19. Recognized the balance of the revenue earned in Year 6 where cash had been collected in Year 5.
20. Accrued salaries at December 31, Year 6, were $1,400.

The following information is available for the bank reconciliation:

1. (1) Checks written but not paid by the bank, $8,350.
2. (2) A deposit of $6,500 made on December 31, Year 6, had been recorded but was not shown on the bank statement.
3. (3) A debit memo for $55 for a new supply of checks. (Hint: Use Office Supplies Expense account.)
4. (4) A credit memo for $30 for interest earned on the checking account.
5. (5) An NSF check for $120.
6. (6) The balance shown on the bank statement was $80,822.

• Requirement
• General Journal
• General Ledger
• Trial Balance
• Income Statement
• Changes in SE
• Balance Sheet
• Statement of CF
• BRS
• 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 6
Transaction	Balance Sheet					Income Statement					Statement of Cash Flows
	Assets	=	Liabilities	+	S. Equity	Revenue		Expenses	=	Net Income
1.												OA
2.
3.											-	OA
4.											-	OA
5.	+		+
6.
7.	+				+	+				+
8.	-				-			+		-
9.	-										-	OA
10.
11.
12.	-										-	OA
13.											+	OA
14.												OA
15.	-				-			+		-	-	OA
16.	-				-
17.	-				-
18.	-				-			+		-
19.
20.