The trial balance of Pacilio Security Services, Inc. as of January 1, Year 4, had the following normal balances: $12,500 3,500 120 Cash Accounts Receivable Supplies Prepaid Rent Land Unearned Revenue Salaries Payable Common Stock Retained Earnings 1,000 4,000 900 1,000 8,000 11, 220 In Year 4, Pacilio Security Services decided to expand its business to sell security systems and offer 24-hour alarm monitoring services. It plans to phase out its current service of providing security personnel at various events. The following summary transactions occurred during Year 4: 1. Paid the salaries payable from Year 3. 2. Acquired an additional $42,000 cash from the issue of common stock. 3. Rented a larger building on May 1; paid $6,000 for 12 months' rent in advance. 4. Paid $800 cash for supplies to be used over the next several months by the business. 5. Purchased alarm systems for resale at a cost of $12,000. The alarm systems were purchased on account with the terms 2/10, n/30. 6. Returned alarm systems that had a cost of $240. 7. Installed alarm systems during the year for a total sales amount of $20,000. Sales of $15,000 were on account, while $5,000 were cash sales. 8. The cost of the systems sold in Event 7 amounted to $9,440. 9. Paid the installers and other employees a total of $9,500 in salaries. 10. Sold $36,000 of monitoring services for the year. The services are billed to the customers each month. 11. Paid cash on accounts payable. The payment was made before the discount period expired. At the time of purchase, the inventory has a cost of $8,000 and was purchased under the terms 2/10, n/30. 12. Paid cash to settle additional accounts payable in the amount of $2,780. The payment was made after the discount period expired. 13. Collected $43.000 of accounts receivable during the vear. 13. Collected $43,000 of accounts receivable during the year. 14. Performed $12,000 of security services for area events; $9,000 was on account and $3,000 was for cash. 15. Paid advertising cost of $1,620 for the year. 16. Paid $1,100 for utilities expense for the year. 17. Paid a dividend of $12,000 to the shareholders. Adjustment Information 18. Supplies of $150 were on hand at the end of the year. 19. Recognized the expired rent for the year. 20. Recognized the balance of the unearned revenue; cash was received in Year 3. 21. Accrued salaries at December 31, Year 4, were $1,500. Requirement General Journal General Ledger Trial Balance Income Statement Changes in SE Balance Sheet Statement of CF Ana Prepare the journal entries to record transactions (1) through (17). Then prepare the necessary adjustin correctly report net income for the period. Then record the closing entries (22) through (24) as of Decen required for a transaction, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 ..... 24 > Paid the salaries payable from Year 3. Note: Enter debits before credits. Data General lournal | Dahit Credit Income a General Ledger Trial Balance Statement Changes in SE Balance Sheet Statement of CF Analysis 5 posted automatically to the general ledger. The unadjusted, adjusted, or post-closing balances will punt, based on your selection. General Ledger Account Cash Accounts receivable Debit Credit | No. Date Debit Credit Balance Balance 12,500 Jan 01 3,500 Supplies Prepaid rent Debit Credit Balance No. Debit Credit Date Jan 01 Balance 1,000 120 Land Salaries payable Debit Credit Debit Credit No. Balance 4,000 Date Jan 01 Balance 1,000 Unearned revenue Common stock Debit Credit Balance No. Debit Credit Date Jan 01 Balance 8,000 900 Retained earnings Debit Credit Balance 11,220 Requirement General Journal General Ledger Income Trial Balance Statement Changes in SE Balance Sheet Statement of CF Ana Choose the appropriate accounts to be reported on the income statement. However, you will need to calc amount of the net income or loss for the period. The unadjusted, adjusted, or post-closing balances will a account, based on your selection. Unadjusted Pacilio Security Services, Inc. Income Statement For the Year Ended December 31, Year 4 Revenues Total Revenues Expenses Total Expenses 19. Recognized the expired rent for the year. 20. Recognized the balance of the unearned revenue; cash was received in Year 3. 21. Accrued salaries at December 31, Year 4, were $1,500. Requirement General Journal General Ledger Trial Balance Income Statement Changes in SE Balance Sheet Statement of CF Ana Prepare the statement of changes in stockholders' equity for the year ended December 31, Year 4. You determine and enter the accounts and balances to prepare the Statement of Changes in Stockholders' Eq adjusted, or post-closing balances will appear for each account, based on your selection. to prepare the statement of Changes in Stockholders" Unadjusted Pacilio Security Services, Inc. Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 4 Beginning Common Stock Ending Common Stock Beginning Retained Earnings Ending Retained Earnings Total Stockholders' Equity separately on the balance sheet. Choose the appropriate accounts to be reported on the balance sheet. 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 4 Assets Liabilities Stockholders' Equity changes in Requirement General Journal General Ledger Income Statement Trial Balance Balance Sheet Statement of CF Ana SE Prepare the statement of cash flow for year ended December 31, Year 4. (Amounts to be deducted should mius sign.) Pacilio Security Services, Inc. Statement of Cash Flows For the Year Ended December 31, Year 4 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 tatements. Also, in the Cash Flow column, use the letters DA to designate operating activity, IA for investing ctivity. The first transaction is recorded as an example. Pacilio Security Services, Inc. Effect of Transactions on Financial Statements - Year 4 Balance Sheet Income Statement Net = Liabilities + S. Equity Revenue - Expenses = Income Statement of Cash Flows ansaction Assets - OA 10. 11. 12. 13. 14. 15. 17. 18. 19. 20. 21.