The trial balance of Pacilio Security Services, Incorporated as of January 1 Year 7, had the following normal balances: 100 Cash $ 78,972 Petty Cash Accounts Receivable 33,440 Supplies 160 Prepaid Rent 3,200 Merchandise Inventory (23e $280) 6.440 Land 4.000 Accounts Payable 250 Salaries Payable 1,400 Comon Stock 50,000 Retained Earnings 74,662 During Year 7. Pacilio Security Services experienced the following transactions: 1. Pald 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. Pald $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 tblance is growing more than desired and some collection problems exist. It appears that uncollectible accounts expense is approximately 3 percent of total credit sales. Pocillo 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. Pocillo 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. 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. Pocillo 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. 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 General General Income Requirement Trial Balance Changes in Balance Statement Journal Ledger Statement SE Sheet of CF Analysis Choose the appropriate accounts to be reported in the income statement. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. 460 Dec 31 Supplies expense Supplies 460 12,800 Dec 31 Rent expense Prepaid rent 12,800 Dec 31 2,100 Salaries expense Salaries payable 2,100 Dec 31 Alarm sales revenue Monitoring service revenue Dec 31 3,234 Uncollectible accounts expense Allowance for doubtful accounts Salaries expense Salaries payable 3,234 2,100 2,100 Dec 31 Dividends 20,000 Cash 20,000 Unadjusted Pacilio Security Services, Inc. Income Statement For the Year Ended December 31, Year 7 Revenues + Total Revenues 0 Expenses Total Expenses $ 0 Adjusted Pacilio Security Services, Inc. Income Statement For the Year Ended December 31, Year 7 Revenues Total Revenues 0 Expenses Total Expenses $ 0 Post-closing Pacilio Security Services, Inc. Income Statement For the Year Ended December 31, Year 7 Revenues Total Revenues 0 Expenses Total Expenses 0