The trial balance of Pacilio Security Services, Incorporated as of January 1. Year 5. had the following normal balances. Cash Accounts receivable Supplies Prepaid rent Merchandise inventory (9 @ $240) Land Accounts payable Salaries payable Common stock Retained earnings $62,860 20,5e8 158 2, Bee 2,160 4, eee 988 1, See 50, eee 39,199 During Year 5. Pacilio Security Services experienced the following transactions: 1. Paid the salaries payable from Year 4. 2. On January 15. purchased 20 standard alarm systems for cash at a cost of $250 each. 3. On February 1. paid the accounts payable of $980, but not within the discount period. (The company uses the gross method.) 4. On March 1, leased a business van. Paid $4.800 for one year's lease in advance. 5. Paid $7,200 on May 1 for one year's rent on the office in advance. 6. Purchased with cash $500 of supplies to be used over the next several months by the business. 7. Purchased with cash another 25 alarm systems on August 1 for resale at a cost of $260 each. 8. On September 5. purchased on account 30 standard alarm systems at a cost of $265. 9. Installed 60 standard alarm systems for $33.000. Sales of $22.000 were on account, while $11.000 were cash sales. 10. Record the cost of goods sold related to the sale from Event 9 using the perpetual FIFO method. 11. Made a full refund to a dissatisfied customer who returned her alarm system. The sale had been a cash sale for $550 with a cost of $260. Record the reversal of revenue. 12. Made a full refund to a dissatisfied customer who returned her alarm system. The sale had been a cash sale for $550 with a cost of $260. Record the reversal of cost. 13. Paid installers and other employees a total of $21,000 cash for salaries. 14. Sold $45.000 of monitoring services during the year. The services are billed to the customers each month. 15. Sold an additional monitoring service for $1.200 for one year's service. The customer paid the full amount of $1.200 on October 1. 16. Collected $74.000 of accounts receivable during the year. 17. Paid an additional $6,000 to settle some of the accounts payable. 18. Paid $3.500 of advertising expense during the year. 19. Paid $2.320 of utilities expense for the year. 20. Paid a dividend of $15.000 to the shareholders. Adjustments 21. There was $200 of supplies on hand at the end of the year. 22. Recognized the expired rent for both the van and the office building for the year. 23. Recognized the revenue earned from transaction 15. 24. Accrued salaries at December 31, Year 5. were $1.000. Requirement General Journal General Ledger Trial Balance Income Statement Changes in SE Balance Sheet Statement of CF Analysis Prepare the journal entries to record transactions (1) through (20). Then prepare the necessary adjusting entries (21) through (24) to correctly report net income for the period. Then record the closing entries (25) through (27) as of December 31, Year 5. (If no entry is 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 6 27 > Paid the salaries payable from Year 4. Note: Enter debits before credits Date General Journal Debit Credit Jan 01 Record entry Clear entry View general journal Unadjusted Pacilio Security Services, Inc. Income Statement For the Year Ended December 31, Year 5 Revenues Total Revenues 0 Expenses Total Operating Expenses $ S 0 Prepare the statement of changes in stockholders' equity for the year ended December 31, Year 5. 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 5 Beginning Common Stock Add: Common stock issued Ending Common Stock $ 50,000 Beginning Retained Earnings 0 0 Ending Retained Earnings Total Stockholders' Equity 39,190 89,190 $ 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. Unadjusted Pacilio Security Services, Inc. Balance Sheet At December 31, Year 5 Assets Liabilities Stockholders' Equity 39,190 39,190 39,190 Total Liabilities and Stockholders' Equity $ Prepare the statement of cash flow for year ended December 31, Year 5. (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 5 Cash flows from operating activities: $ 0 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 0 Ending cash balance $ 0 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 5 Balance Sheet Income Statement Net Assets = Liabilities + S. Equity Revenue - Expenses = Income Statement of Cash Flows Transaction 1. OA 2 3 4 5. 6. 7. 8 9 10 11. 12 13 14 15. 16. 17. 18. 19. 20 21 22 23. 24