The trial balance of Pacilio Security Services, Inc. as of January 1, Year 7, had the following normal balances: Cash Petty Cash Accounts Receivable Supplies Prepaid Rent Merchandise Inventory (23 $280) Land Accounts Payable Salaries Payable Common Stock Retained Earnings $78,972 33,440 160 3,200 6,440 4,000 250 1,400 50,000 74,662 During Year 7, Pacilio Security Services experienced the following transactions: 1. Paid the salaries payable from Year 6 2. Paid $4800 on March 1. Year 7, for one year's lease in advance on the company van. 3. Paid $8,400 on May 2. Year 7, for one year's office rent in advance 4. Purchased $550 of supplies on account. 5. Paid cash to purchase 105 alarm systems at a cost of $285 each 6. Pacilio has noticed its accounts receivable balance is growing more than desired and some collection problems exist. It appea that uncollectible accounts expense is approximately 3 percent of total credit sales. Pacilio has decided it will, starting this yea adopt the allowance method of accounting for uncollectible accounts. It will record an adjusting entry to recognize the estimate the end of the year 7. in trying to collect several of its delinquent accounts, Pacilio has learned that these customers have either declared bankruptcy 8 Sold 110 alarm svstems for S63.800. All sales were on account. (Comoute cost of aoods sold usina the FIFO cost flow metho moved and left no forwarding address. These uncollectible accounts amount to $1,900 moved and lett no torwarding address. Inese uncoliectibie accounts amount to s1900 8. Sol 9. Record the cost of goods sold related to the sale from Event 8 using the FIFO method. 10. Paid the balance of the accounts payable 11. Pacilio began accepting credit cards for some of its monitoring service sales. The credit card company char d 110 alarm systems for $63,800. All sales were on account (Compute cost of goods sold using the FIFO Total monitoring services for the year were $68,000. Pacilio accepted credit cards for $24,000 of this amour was sales on account. 12 On July 1, Year 7, Pacilio replenished the petty cash fund. The fund contained $21 of currency and receipts of $22 for office supplies expense, and $9 for miscellaneous expenses. 13. Collected the amount due from the credit card company 14. Paid installers and other employees a total of $45,000 cash for salaries 15. Collected $116,800 of accounts receivable during the year 16. Paid $9,500 of advertising expense during the year 17. Paid $5,200 of utilities expense for the year 18. Paid a dividend of $20,000 to the shareholders Adjustments 19. There was $250 of supplies on hand at the end of the year 20. Recognized the expired rent for both the van and the office for the year 21 Recognized the uncollectible accounts expense for the year using the allowance method 22 Accrued salaries at December 31. Year 7 were $2100 Statement Adjustments 19. There was $250 of supplies on hand at the end of the year 20. Recognized the expired rent for both the van and the office for the year. 21. Recognized the uncollectible accounts expense for the year using the allowance method. 22 Accrued salaries at December 31, Year 7, were $2,100 General General ournal Ledger Income Changes in Balance Statement Analysis Requirement Trial Balance statement SE Sheet of CF General Journal tab - Prepare the journal entries to record transactions (1) through (18). Then prepare the necessary adjusting entries (19) through (22) to correctly report net income for the period. Then record the closing entries (23) through (25) as of December 31, Year 7 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 7 Balance Sheet tab - Prepare a classified Balance Sheet at December 31, Year 7 Statement of Cash flows Prepare the statement of cash flow for year ended December 31, Year 7. Analysis tab - Use a horizontal statements model to show how each transaction affects the balance sheet, income statement, and statement of cash flows The trial balance of Pacilio Security Services, Inc. as of January 1, Year 7, had the following normal balances: Cash Petty Cash Accounts Receivable Supplies Prepaid Rent Merchandise Inventory (23 $280) Land Accounts Payable Salaries Payable Common Stock Retained Earnings $78,972 33,440 160 3,200 6,440 4,000 250 1,400 50,000 74,662 During Year 7, Pacilio Security Services experienced the following transactions: 1. Paid the salaries payable from Year 6 2. Paid $4800 on March 1. Year 7, for one year's lease in advance on the company van. 3. Paid $8,400 on May 2. Year 7, for one year's office rent in advance 4. Purchased $550 of supplies on account. 5. Paid cash to purchase 105 alarm systems at a cost of $285 each 6. Pacilio has noticed its accounts receivable balance is growing more than desired and some collection problems exist. It appea that uncollectible accounts expense is approximately 3 percent of total credit sales. Pacilio has decided it will, starting this yea adopt the allowance method of accounting for uncollectible accounts. It will record an adjusting entry to recognize the estimate the end of the year 7. in trying to collect several of its delinquent accounts, Pacilio has learned that these customers have either declared bankruptcy 8 Sold 110 alarm svstems for S63.800. All sales were on account. (Comoute cost of aoods sold usina the FIFO cost flow metho moved and left no forwarding address. These uncollectible accounts amount to $1,900 moved and lett no torwarding address. Inese uncoliectibie accounts amount to s1900 8. Sol 9. Record the cost of goods sold related to the sale from Event 8 using the FIFO method. 10. Paid the balance of the accounts payable 11. Pacilio began accepting credit cards for some of its monitoring service sales. The credit card company char d 110 alarm systems for $63,800. All sales were on account (Compute cost of goods sold using the FIFO Total monitoring services for the year were $68,000. Pacilio accepted credit cards for $24,000 of this amour was sales on account. 12 On July 1, Year 7, Pacilio replenished the petty cash fund. The fund contained $21 of currency and receipts of $22 for office supplies expense, and $9 for miscellaneous expenses. 13. Collected the amount due from the credit card company 14. Paid installers and other employees a total of $45,000 cash for salaries 15. Collected $116,800 of accounts receivable during the year 16. Paid $9,500 of advertising expense during the year 17. Paid $5,200 of utilities expense for the year 18. Paid a dividend of $20,000 to the shareholders Adjustments 19. There was $250 of supplies on hand at the end of the year 20. Recognized the expired rent for both the van and the office for the year 21 Recognized the uncollectible accounts expense for the year using the allowance method 22 Accrued salaries at December 31. Year 7 were $2100 Statement Adjustments 19. There was $250 of supplies on hand at the end of the year 20. Recognized the expired rent for both the van and the office for the year. 21. Recognized the uncollectible accounts expense for the year using the allowance method. 22 Accrued salaries at December 31, Year 7, were $2,100 General General ournal Ledger Income Changes in Balance Statement Analysis Requirement Trial Balance statement SE Sheet of CF General Journal tab - Prepare the journal entries to record transactions (1) through (18). Then prepare the necessary adjusting entries (19) through (22) to correctly report net income for the period. Then record the closing entries (23) through (25) as of December 31, Year 7 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 7 Balance Sheet tab - Prepare a classified Balance Sheet at December 31, Year 7 Statement of Cash flows Prepare the statement of cash flow for year ended December 31, Year 7. Analysis tab - Use a horizontal statements model to show how each transaction affects the balance sheet, income statement, and statement of cash flows