The trial balance of Pacilio Security Services, Incorporated as of January 1, Year 6, had the following normal balances.

Cash	$74,210
Accounts Receivable	13,500
Supplies	200
Prepaid Rent	3,200
Merchandise Inventory (24 @ $265; 1 @ $260)	6,620
Land	4,000
Accounts Payable	1,950
Unearned Revenue	900
Salaries Payable	1,000
Common Stock	50,000
Retained Earnings	47,880

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 years 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

1. There was $160 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. (The rent for both the van and the office remained the same for Year 5 and Year 6.)
3. Recognized the balance of the revenue earned in Year 6 where cash had been collected in Year 5.
4. Accrued salaries at December 31, Year 6, were $1,400.

The following information is available for the bank reconciliation:

1. (1) Checks written but not paid by the bank, $8,350.
2. (2) A deposit of $6,500 made on December 31, Year 6, had been recorded but was not shown on the bank statement.
3. (3) A debit memo for $55 for a new supply of checks. (Hint: Use Office Supplies Expense account.)
4. (4) A credit memo for $30 for interest earned on the checking account.
5. (5) An NSF check for $120.
6. (6) The balance shown on the bank statement was $80,822.

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.