The trial balance of Pacilio Security Services, Incorporated as of January 1, Year 7, had the following normal balances: Cash Petty Cash Accounts Receivable Supplies Prepaid Rent Land $ 78,972 100 33,440 160 3,200 Merchandise Inventory (23 @ $280) 6,440 4,000 Accounts Payable 250 Salaries Payable 1,400 Common Stock 50,000 Retained Earnings 74,662 During Year 7, Pacilio 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. 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 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, Pacilio has learned that these customers have either declared bankruptcy or moved and left no forwarding address. These uncollectible accounts amount to $1,900. 8. 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. Pacilio 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. Pacilio accepted credit cards for $24,000 of this amount. The other $44,000 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 $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 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. The year shown represents Year 7 from the problem statement. Adjusted Cash Petty cash Accounts receivable Merchandise inventory Supplies Prepaid rent Land Accounts payable Salaries payable Common stock Retained earnings Total Pacilio Security Services, Inc. Post-Closing Trial Balance December 31, 2023 Account Title < General Ledger Income Statement > Debit Credit $ 78,972 100 33,440 6,440 160 3,200 4,000 250 1,400 50,000 74,662 $ 126,312 $ 126,312 Requirement General Journal General Ledger Trial Balance Income Statement Changes in SE Balance Sheet Statement of CF Analysis Prepare the statement of cash flow for year ended December 31, Year 7. (Amounts to be deducted should be indicated with a minus sign.) Pacilio Security Services, Inc. Statement of Cash Flows For the Year Ended December 31, Year 7 Cash flows from operating activities: Net cash flow from operating activities $ 0 Cash flows from investing activities: Net cash flows from investing activities Cash flows from financing activities: Net cash flow from financing activities Ending cash balance Balance Sheet 0 $ 0 Analysis > Requirement General Journal General Ledger Trial Balance Income Statement Changes in Balance SE Sheet Statement of CF Analysis Choose the appropriate accounts to be reported on the income statement. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Adjusted Revenues Total Revenues Expenses Total Expenses Pacilio Security Services, Inc. Income Statement For the Year Ended December 31, Year 7 0 $ 0 < Trial Balance Changes in SE >