The trial balance of Pacilio Security Services, Incorporated as of January 1, Year 5, had the following normal balances.

Cash	$62,860
Accounts receivable	20,500
Supplies	150
Prepaid rent	2,000
Merchandise inventory (9 @ $240)	2,160
Land	4,000
Accounts payable	980
Salaries payable	1,500
Common stock	50,000
Retained earnings	39,190

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 years lease in advance.
5. Paid $7,200 on May 1 for one years 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 years 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

1. There was $200 of supplies on hand at the end of the year.
2. Recognized the expired rent for both the van and the office building for the year.
3. Recognized the revenue earned from transaction 15.
4. Accrued salaries at December 31, Year 5, were $1,000.

23 Recognized the revenue earned from transaction 15. Prepare the adjusting journal entry, if necessary. 24 Accrued salaries at December 31, Year 5, were $1,000. Prepare the adjusting journal entry, if necessary. 25 Record the closing entry for the revenue accounts. 26 Record the closing entry for the expense accounts. 27 Record the closing entry for dividends account. 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. 21 There was $200 of supplies on hand at the end of the year. Prepare the adjusting journal entry, if necessary. 22 Recognized the expired rent from the prior year, van and nffirs huildinn for the vear Drenaro the adiuctinn inurnal 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 in Event 11 and the reversal of cost separately in Event 12 . 12 Record the reversal of cost of goods sold for the refund issued in Event 11. 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 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. 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. 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.) Journal entry worksheet Note: Enter debits before credits. 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 artivitw Thn firet transartinn is rnmortnrtar an nvammln Prepare the statement of cash flow for year ended December 31 , Year 5 . (Amounts to be deducted should be indicated with a minus sign.) 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. repare the statement of changes in stockholders' equity for the year ended December 31 , Year 5 . You will need to determine nd enter the accounts and balances to prepare the Statement of Changes in Stockholders' Equity. Choose the appropriate accounts to be reported on the income statement. However, you will need to calculate and enter the amount of the net income or loss for the period. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. 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. Year 2020 represents Year 5 from the problem statement. General Ledger Account \begin{tabular}{|r|c|c|c|c|} \hline \multicolumn{3}{|c|}{ Cash } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & Jan 01 & & & 62,860 \\ \hline \end{tabular} \begin{tabular}{|r|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Accounts receivable } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & Jan 01 & & & 20,500 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Merchandise inventory } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & Jan 01 & & & 2,160 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Supplies } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & Jan 01 & & & 150 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Prepaid rent } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & Jan 01 & & & 2,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Land } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & Jan 01 & & & 4,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Accounts payable } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & Jan 01 & & & 980 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Salaries payable } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & Jan 01 & & & 1,500 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Common stock } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & Jan 01 & & & 50,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Retained earnings } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & Jan 01 & & & 39,190 \\ \hline \end{tabular} 23 Recognized the revenue earned from transaction 15. Prepare the adjusting journal entry, if necessary. 24 Accrued salaries at December 31, Year 5, were $1,000. Prepare the adjusting journal entry, if necessary. 25 Record the closing entry for the revenue accounts. 26 Record the closing entry for the expense accounts. 27 Record the closing entry for dividends account. 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. 21 There was $200 of supplies on hand at the end of the year. Prepare the adjusting journal entry, if necessary. 22 Recognized the expired rent from the prior year, van and nffirs huildinn for the vear Drenaro the adiuctinn inurnal 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 in Event 11 and the reversal of cost separately in Event 12 . 12 Record the reversal of cost of goods sold for the refund issued in Event 11. 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 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. 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. 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.) Journal entry worksheet Note: Enter debits before credits. 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 artivitw Thn firet transartinn is rnmortnrtar an nvammln Prepare the statement of cash flow for year ended December 31 , Year 5 . (Amounts to be deducted should be indicated with a minus sign.) 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. repare the statement of changes in stockholders' equity for the year ended December 31 , Year 5 . You will need to determine nd enter the accounts and balances to prepare the Statement of Changes in Stockholders' Equity. Choose the appropriate accounts to be reported on the income statement. However, you will need to calculate and enter the amount of the net income or loss for the period. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. 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. Year 2020 represents Year 5 from the problem statement. General Ledger Account \begin{tabular}{|r|c|c|c|c|} \hline \multicolumn{3}{|c|}{ Cash } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & Jan 01 & & & 62,860 \\ \hline \end{tabular} \begin{tabular}{|r|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Accounts receivable } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & Jan 01 & & & 20,500 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Merchandise inventory } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & Jan 01 & & & 2,160 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Supplies } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & Jan 01 & & & 150 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Prepaid rent } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & Jan 01 & & & 2,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Land } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & Jan 01 & & & 4,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Accounts payable } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & Jan 01 & & & 980 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Salaries payable } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & Jan 01 & & & 1,500 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Common stock } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & Jan 01 & & & 50,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Retained earnings } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & Jan 01 & & & 39,190 \\ \hline \end{tabular}