The trial balance of Pacilio Security Services, Incorporated as of January 1, Year 7 had the following normal balances: Cash $ 70,972 Petty Canh 100 Accounts Receivable 33,440 Supplie 160 Prepaid Rent 3,200 Merchandise Inventory (235280) 6,440 Land 4,000 recounts Payable 250 Salarios Payable 1.400 Co Stock 50.000 Retained Earn 74,662 During Your 7. Pocillo Security Services experienced the following transactions: 1. Paid the salaries payable from Year 6. 2. Paid $4.800 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. Pald cash to purchase 105 alarm systems at a cost of $285 each 6. Pacilo has noticed its accounts receivable balance is growing more than desired and some collection problems exist. It appears that uncollectible accounts expense is approximately 3 percent of total credit sales. Pacilio has decided it will, starting this year. adopt the allowance method of accounting for uncollectible accounts. It will record an adjusting entry to recognize the estimate at the end of the year 7. in trying to collect several of its delinquent accounts, Pacilo has learned that these customers have either declared bankruptcy or moved and left no forwarding address. These uncollectible accounts amount to $1.900. 3. Sold 110 alarm systems for $63,800. All sales were on account. 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. Pacilo began accepting credit cards for some of its monitoring service sales. The credit card company charges a fee of 4 percent. Total monitoring services for the year were $68,000. Pacillo accepted credit cards for $24,000 of this amount. The other $44,000 was sales on account 12. On July 1 Year 7. Pacitio replenished the petty cash fund. The fund contained $21 of currency and receipts of $50 for yard mowing. $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 $2,100, Requirement General Journal General Ledger Trial Balance Income Statement Changes in SE Balance Sheet Statement of CF Analysis Unadjusted Pacilio Security Services, Inc. Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 7 Beginning Common Stock Add: Common stock issued Ending Common Stock Beginning Retained Earnings (20,000) Ending Retained Earnings Total Stockholders' Equity 54,662 54,662 $ Unadjusted Pacilio Security Services, Inc. Balance Sheet At December 31, Year 7 Assets 0 0 Liabilities Stockholders' Equity 54,662 Total Stockholders' Equity Total Liabilities and Stockholders' Equity 54,662 54,662 $ . CULT WITH minus sign.) Pacilio Security Services, Inc. Statement of Cash Flows For the Year Ended December 31, Year 7 Cash flows from operating activities: $ 0 Net cash flow from operating activities Cash flows from investing activities: Net cash flows from investing activities Cash flows from financing activities: 0 Net cash flow from financing activities Ending cash balance $ Pacilio Security Services, Inc. Effect of Transactions on Financial Statements - Year 7 Balance Sheet Income Statement Stockholders' Net - Liabilities + Revenue Expenses Equity Income Statement of Cash Flows Transaction Assets 1. 2. 3 4. 5 6. 7 8 9. 10. 11. 12 13 14. 15 16. 17 18. 19. 20. 21. 22