The trial balance of Pacilio Security Services, Incorporated as of January 1, Year 6, had the following normal balances. Cash $74,210 13,500 Accounts Receivable Supplies 200 Prepaid Rent 3,200 Merchandise Inventory (24 @ $265; 1 @ $260) 6,620 Land 4,000 1,950 Accounts Payable Unearned Revenue 900 Salaries Payable Common Stock 1,000 50,000 47,880 Retained Earnings During Year 6, Pacilio Security Services experienced the following transactions: 1. Paid the salaries payable from Year 5. 2. On March 1, Year 6, Pacilio established a $100 petty cash fund to handle small expenditures. 3. Paid $4,800 on March 1, Year 6, for a one-year lease on the company van in advance. 4. Paid $7,200 on May 2, Year 6, for one year's office rent in advance. 5. Purchased $400 of supplies on account. 6. Purchased 100 alarm systems for $28,000 cash during the year. 7. Sold 102 alarm systems for $57,120. All sales were on account. 8. Record the cost of goods sold related to the sale from Event 7 using the FIFO method. 9. Paid $2,100 on accounts payable during the year. 10. Replenished the petty cash fund on August 1. At this time, the petty cash fund had only $7 of currency left. It contained the following receipts: office supplies expense, $23; cutting grass, $55; and miscellaneous expense, $14. 11. Billed $52,000 of monitoring services for the year. 12. Paid installers and other employees a total of $25,000 cash for salaries. 13. Collected $89,300 of accounts receivable during the year. 14. Paid $3,600 of advertising expense during the year. 15. Paid $2,500 of utilities expense for the year. 16. Paid a dividend of $10,000 to the shareholders. Adjustments 17. There was $160 of supplies on hand at the end of the year. 18. Recognized the expired rent for both the van and the office building for the year. (The rent for both the van and the office remained the same for Year 5 and Year 6.) 19. Recognized the balance of the revenue earned in Year 6 where cash had been collected in Year 5. 20. Accrued salaries at December 31, Year 6, were $1,400. The following information is available for the bank reconciliation: (1) Checks written but not paid by the bank, $8,350. (2) A deposit of $6,500 made on December 31, Year 6, had been recorded but was not shown on the bank statement. (3) A debit memo for $55 for a new supply of checks. (Hint: Use Office Supplies Expense account.) (4) A credit memo for $30 for interest earned on the checking account. (5) An NSF check for $120. (6) The balance shown on the bank statement was $80,822. Requirement General Journal General Ledger Trial Balance Income Statement Changes in SE Balance Sheet Statement of CF Bank Reconcil Analysis General Journal tab - Prepare the journal entries to record transactions (1) through (16). Then prepare the necessary adjusting entries (17) through (22) to correctly report net income for the period. Then record the closing entries (23) through (25) as of December 31, Year 6. 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 properly 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 6. Balance Sheet tab - Prepare a classified balance sheet at December 31, Year 6. Statement of Cash Flows tab - Prepare the statement of cash flows for the year ended December 31, Year 6. Bank Reconciliation tab - Prepare a bank reconciliation at the end of the year. Analysis tab - Use a horizontal statements model to show how each transaction affects the balance sheet, income statement, and statement of cash flows. General Changes in Statement General Ledger Requirement Trial Balance Income Statement Balance Sheet Bank Reconcil Analysis Journal SE of CF Prepare the journal entries to record transactions (1) through (16). Then prepare the necessary adjusting entries (17) through (22) to correctly report net income for the period. Then record the closing entries (23) through (25) as of December 31, Year 6. (If no entry is required for a transaction, select "No journal entry required" in the first account field.) Show less View transaction list X > Paid the salaries payable from Year 5. On March 1, Year 6, Pacilio established a $100 petty cash fund to handle small expenditures. 3 Paid $4,800 on March 1, Year 6, for a one-year lease on the company van in advance. Paid $7,200 on May 2, Year 6, for one year's office rent advance. Purchased $400 of supplies on account. 6 Purchased 100 alarm systems for $28,000 cash during the year. 25 Credit Requirement General Journal General Ledger Trial Balance Income Statement Changes in SE Balance Sheet Statement of CF Bank Reconcil Analysis Prepare the journal entries to record transactions (1) through (16). Then prepare the necessary adjusting entries (17) through (22) to correctly report net income for the period. Then record the closing entries (23) through (25) as of December 31, Year 6. (If no entry is required for a transaction, select "No journal entry required" in the first account field.) Show less View transaction list X 7 Sold 102 alarm systems for $57,120. All sales were on > account. Record the cost of goods sold related to the sale from Event 7 using the FIFO method. Paid $2,100 on accounts payable during the year. 10 Replenished the petty cash fund on August 1. At this time, the petty cash fund had only $7 of currency left. It contained the following receipts: office supplies expense, $23; cutting grass, $55; and miscellaneous expense, $14. Billed $52,000 of monitoring services for the year. 25 Credit Requirement General General Journal Ledger Trial Balance Income Statement Changes in SE Balance Sheet Statement of CF Bank Reconcil Analysis Prepare the journal entries to record transactions (1) through (16). Then prepare the necessary adjusting entries (17) through (22) to correctly report net income for the period. Then record the closing entries (23) through (25) as of December 31, Year 6. (If no entry is required for a transaction, select "No journal entry required" in the first account field.) Show less View transaction list X 12 Paid installers and other employees a total of $25,000 cash for salaries. > 13 Collected $89,300 of accounts receivable during the year. 14 Paid $3,600 of advertising expense during the year. 15 Paid $2,500 of utilities expense for the year. 16 Paid a dividend of $10,000 to the shareholders. 17 There was $160 of supplies on hand at the end of the year. Prepare the adjusting journal entry, if necessary. 18 Recognized the expired rent for both the van and the office building for the year (The rent for both the van and os or 25 Credit General Statement Requirement General Ledger Trial Balance Income Statement Changes in SE Balance Sheet Bank Reconcil Journal Analysis of CF Prepare the journal entries to record transactions (1) through (16). Then prepare the necessary adjusting entries (17) through (22) to correctly report net income for the period. Then record the closing entries (23) through (25) as of December 31, Year 6. (If no entry is required for a transaction, select "No journal entry required" in the first account field.) Show less View transaction list X > 18 Recognized the expired rent for both the van and the office building for the year. (The rent for both the van and the office remained the same for Year 5 and Year 6.) Prepare the adjusting journal entry, if necessary. 19 Recognized the balance of the revenue earned in Year 6 where cash had been collected in Year 5. Prepare the adjusting journal entry, if necessary. 20 Accrued salaries at December 31, Year 6, were $1,400. Prepare the adjusting journal entry, if necessary. 21 Record the journal entry for the bank reconciliation for the debit memos or checks not included on the books, if necessary. os or 25 Credit General Statement Requirement General Ledger Trial Balance Income Statement Changes in SE Balance Sheet Bank Reconcil Analysis Journal of CF Prepare the journal entries to record transactions (1) through (16). Then prepare the necessary adjusting entries (17) through (22) to correctly report net income for the period. Then record the closing entries (23) through (25) as of December 31, Year 6. (If no entry is required for a transaction, select "No journal entry required" in the first account field.) Show less View transaction list X -~ Prepare the adjusting journal entry, if necessary. > 21 Record the journal entry for the bank reconciliation for the debit memos or checks not included on the books, if necessary. 22 Record the journal entry for the bank reconciliation for the credit memos and interest received not included on the books, if necessary. 23 Record the closing entry for the revenue accounts. 24 Record the closing entry for the expense accounts. 25 Record the closing entry for dividends account. os or 25 Credit General Requirement General Journal Ledger Statement Trial Balance Income Statement Changes in SE Balance Sheet Bank Reconcil 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. Post-closing Pacilio Security Services, Inc. Income Statement For the Year Ended December 31, Year 6 Revenues Total Revenues Expenses Total Operating Expenses Net Operating Income Non-Operating Items 0 0 General General Requirement Trial Balance Income Statement Balance Sheet Journal Changes in SE Statement of CF Ledger Bank Reconcil Analysis Prepare the statement of changes in stockholders' equity for the year ended December 31, Year 6. You will need to determine and enter the accounts and balances to prepare the Statement of Changes in Stockholders' Equity. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Post-closing Pacilio Security Services, Inc. Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 6 Beginning Common Stock Add: Common stock issued Ending Common Stock Beginning Retained Earnings $ 47,880 Ending Retained Earnings Total Stockholders' Equity General Requirement General Ledger Trial Balance Income Statement Changes in SE Balance Statement Sheet of CF Bank Reconcil Analysis Journal 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. Post-closing Pacilio Security Services, Inc. Balance Sheet At December 31, Year 6 Assets Liabilities Stockholders' Equity Liabilities 0 General General Requirement Journal Ledger Changes in Statement Trial Balance Income Statement Balance Sheet Bank Reconcil Analysis SE of CF Prepare a bank reconciliation at the end of the year. (Amounts to be deducted should be indicated with a minus sign.) Pacilio Security Services Bank Reconciliation December 31, Year 6 Unadjusted Bank Balance, 12/31/Year 6 True Cash Balance, 12/31/Year 6 0 Unadjusted Book Balance, 12/31/Year 6 True Cash Balance, 12/31/Year 6 $ $ 0 General Changes in Requirement General Ledger Trial Balance Income Statement Balance Sheet Statement of CF Bank Reconcil Analysis Journal SE Indicate whether the transaction increases (+), decreases (-), or increases and decreases (+/-) for each element of the financial statements. Also, in the Statement of Cash Flows column, use the letters OA to designate operating activity, IA for investing activity, FA for financing activity, or leave blank for no effect. The first transaction is recorded as an example. Pacilio Security Services, Inc. Effect of Transactions on Financial Statements - Year 6 Balance Sheet Income Statement Net Statement of Cash Flows Transaction Assets Liabilities + S. Equity Revenue Expenses Income 1. OA 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20