The trial balance of Pacilio Security Services, Inc. as of January 1, Year 8, had the following normal balances: Cash $93,708 100 Petty cash Accounts receivable Allowance for doubtful accounts Supplies Prepaid rent Merchandise inventory (18 @ $285) Land Salaries payable Common stock Retained earnings 22,540 1,334 250 3,600 5, 130 4,000 2,100 50,000 75,894 During Year 8. Pacilio Security Services experienced the following transactions: 1. Paid the salaries payable from Year 7. 2. Purchased equipment and a van for a lump sum of $36,000 cash on January 2, Year 8. The equipment was appraised for $10,000 and the van was appraised for $30,000. 3. Paid $9,000 on May 1, Year 8, for one year's office rent in advance. 4. Purchased $300 of supplies on account. 5. Purchased 120 alarm systems at a cost of $280 each. Paid cash for the purchase. 7. Sold 115 alarm systems for $580 each. All sales were on account. 8. Record the cost of goods sold related to the sale from Event 7 using the FIFO method. 9. Billed $86,000 of monitoring services for the year. Credit card sales amounted to $36,000, and the credit card company charged a 4 percent fee. The remaining $50,000 were sales on account. 0. Replenished the petty cash fund on June 30. The fund had $12 cash and receipts of $45 for yard mowing, $28 for office supplies expense, and $11 for miscellaneous expenses. 11. Collected the amount due from the credit card company 2. Paid installers and other employees a total of $52,000 cash for salaries. 13. Collected $115,500 of accounts receivable during the year. 14. Paid $12,500 of advertising expense during the year. 5. Paid $6,800 of utilities expense for the year. 6. Sold the land, which was purchased in 2011, for $12,000. 17. Paid the accounts payable. 18. Paid a dividend of $10,000 to the shareholders. Adjustments 9. Determined that $180 of supplies were on hand at the end of the year. O. Recognized the expired rent for both the old van and the office building for the year. The lease on the van was not renewed. Rent paid on March 1, Year 7 for the van was $4,800. 21. Recognized uncollectible accounts expense for the year using the allowance method. Pacilio estimates that 3 percent of sales on account will not be collected. 2. Recognized depreciation expense on the equipment and the van. The equipment has a five-year life and a $2,000 salvage value. The van has a four-year life and a $6,000 salvage value. The company uses double-declining balance for the van and straight-line for the equipment. 3. Accrued salaries at December 31, Year 8, were $1,500. General Requirement General Trial Balance Statement Income Changes in Balance Sheet Journal Ledger Statement of CF Analysis General Journal tab. Prepare the journal entries to record transactions (1) through (18). Then prepare the necessary adjusting entries (19) through (23) to correctly report net income for the period. Then record the closing entries (24) through (26) as of December 31, Year 8. 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 property 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 8. Balance Sheet tab - Prepare a cassified Balance Sheet at December 31, Year 8. Statement of Cash flows - Prepare the statement of cash flow for year ended December 31, Year 8. Analysis tab - Use a horizontal statements model to show how each transaction affects the balance sheet, income statement, and statement of cash flows. General Journal > Requirement General Income Journal General Ledger Trial Balance Statement Changes in SE Balance Sheet Statement of CF Analysis Prepare the journal entries to record transactions (1) through (18). Then prepare the necessary adjusting entries (19) through (23) to correctly report net income for the period. Then record the closing entries (24) through (26) as of December 31, Year 8. (If no entry is required for a transaction, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 2 3 4 5 6 7 Paid the salaries payable from Year 7. Note: Enter debits before credits Date General Journal Debit Credit Dec 31 Record entry Clear entry View general Journal 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 Petty cash No. Debit Credit Date Debit Credit Balance Date Jan 01 Balance 93,708 Jan 01 Accounts receivable Debit Credit Balance No. Allowance for doubtful accounts Debit Credit Jan 01 Date Date Jan 01 Balance 22,540 Merchandise inventory Supplies Debit No. Date Debit Credit No. Credit Balance 5,130 Date Jan 01 Balance 250 Jan 01 Prepaid rent Land Debit Credit No. Debit Credit Date Jan 01 Balance 3,600 Balance 4,000 Jan 01 Salaries payable Common stock Date Debit Credit No. Date Debit Credit Balance 2.100 Balance 50.000 Jan 01 Jan 01 Retained earnings Debit Credit No Date Jan 01 Balance 75,894 Requirement General Journal General Ledger Income Trial Balances Statement changes in SE Balance Sheet Statement of CF Analysis 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 7 from the problem statement. Unadjusted Pacilio Security Services, Inc. Trial Balance December 31, 2020 Account Title Credit Debit 93,708 100 22,540 Cash petty cash Accounts receivable Allowance for doubtful accounts Merchandise inventory Supplies Prepaid rent Land Salaries payable Common stock Retained earnings Total 5,130 250 3,600 4,000 2,100 50,000 75.894 129,328 $ 129,328 $ Pacilio Security Services, Inc. Income Statement For the Year Ended December 31, Year 8 Revenues Total Revenues Expenses | TUTTI Total Operating Expenses Net Operating Income Non-Operating Items account will not be collectea. 2. Recognized depreciation expense on the equipment and the van. The equipment has a five-year life and a $2,000 salvage value. The van has a four-year life and a $6,000 salvage value. The company uses double-declining-balance for the van and straight-line for the equipment. 3. Accrued salaries at December 31, Year 8, were $1,500. 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 8. 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 8 Beginning Common Stock Add: Common stock issued Ending Common Stock Beginning Retained Earnings $ 0 Ending Retained Earnings Total Stockholders' Equity 75 894 ( income Statement Balance sheet > 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. (Enter the balance sheet items in the order of liquidity.) Show less Unadjusted Pacilio Security Services, Inc. Balance Sheet At December 31, Year 8 Assets Liabilities Stockholders' Equity Requirement General Journal General Ledger Trial Balance Income changes in Statement Balance Sheet Statement of CF Analysis Prepare the statement of cash flow for year ended December 31, Year 8. (Amounts to be deducted should be indicated with a mius sign.) Pacilio Security Services, Inc. Statement of Cash Flows For the Year Ended December 31, Year 8 Cash flows from operating activities: Net cash flow from operating activities Cash flows from investing activities: Cash flows from investing activities Cash flows from financing activities: Net cash flow from financing activities Ending cash balance 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 8 Balance Sheet Income Statement Net Liabilities S. Equity Revenue - Expenses = Statement of Cash Flows Transaction Assets OA OA