The trial balance of Pacillo Security Services, Incorporated as of January 1 Year 7 had the following normal balances Cash 78,972 Petty Cash 100 Accounts Receivable 33,440 Supplies 160 Prepaid Rent 3,200 Merchandise Inventory (23e 6,440 $280) Land 4,000 Accounts Payable 250 Salaries Payable 1,400 Common Stock 50,000 Retained Earnings 74,662 During Your 7, Pacilo Security Services experienced the following transactions: 1. Paid 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. Paid $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. Pocillo has noticed its accounts receivable balance is growing more than desired and some collection problems ekst. 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 2. In trying to collect several of its delinquent accounts, Pacilo has learned that these customers have other declared bankruptcy or moved and left no forwarding address. These uncollectible accounts amount to $1900 Sold 110 alarm systems for $63,800. All sales were on account. 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. Pacinio 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. Pocillo accepted credit cards for $24.000 of this amount. The other $44,000 was sales on account 12. On July 1 Year 7, Paclio replenished the petty cash fund. The fund contained $21 of currency and receipts of $50 for yard mowing, 522 for office supplies expense, and 59 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. Pald $9.500 of advertising expense during the year 17. Pald 55,200 of utilities expense for the year 18. Palda 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 12. Accrued salaries at December 31, Year 7 were $2,100. General General Trial Income Changes Balance State... Requir Journal Ledger Balance State In SE Sheet of CF Analysis General Journal tab - Prepare the journal entries to record transactions (1) through (18). Then prepare the necessary adjusting entries (19) through (22) to correctly report net Income for the period. Then record the closing entries (23) through (25) as of December 31, Year 7. General Ledger tab - Each Journal entry is posted automatically to the general ledger Tral Balance tab - The ending balance values from the General Ledger tab flows through to the Trial alance 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 7. Balance Sheet tab. Prepare a classified Balance Sheet at December 11 Year
