Answer full question. ### Adjustments1. **Supplies on Hand**: - There was $120 of supplies on hand at the end of the year.2. **Expired Rent**: - Recognized the expired rent.3. **Earned Revenue**: - Recognized the earned revenue from Year 2 and transaction no. 8.4. **Accrued Salaries**: - Accrued salaries were $1,000 at December 31, Year 3.### Income Statement#### Requirement:You will need to 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.#### Accounts Tabs:- General Journal- General Ledger- Trial Balance- Income Statement- Changes in SE- Balance Sheet- Statement of CF- Analysis#### Income Statement Details (Unadjusted):**Pacilio Security Services, Inc.****Income Statement****For the Year Ended December 31, Year 3**- **Revenues:** - Details to be filled per selection- **Total Revenues:** - Amount will be calculated based on the revenues- **Expenses:** - Details to be filled per selection- **Total Expenses:** - Amount will be calculated based on the expenses### How to Use:1. Select the relevant tab based on the requirement for the income statement.2. Choose the appropriate accounts which should be reported on the income statement.3. The balances (unadjusted, adjusted, or post-closing) will appear based on your selection.This income statement will help ensure all adjustments are properly accounted for, reflecting an accurate financial position of Pacilio Security Services, Inc. for Year 3. ### Trial Balance of Pacilio Security Services, Inc. (January 1, Year 3)The trial balance of Pacilio Security Services, Inc. as of January 1, Year 3, had the following normal balances:| **Account** | **Balance** ||--------------------------|-------------|| Cash | $8,900 || Accounts Receivable | $1,500 || Supplies | $65 || Prepaid Rent | $800 || Land | $4,000 || Accounts Payable | $1,050 || Unearned Revenue | $200 || Salaries Payable | $1,200 || Notes Payable | $2,000 || Common Stock | $8,000 || Retained Earnings | $2,815 |### Transactions During Year 3During Year 3, Pacilio Security Services experienced the following transactions:1. **Paid the salaries payable from Year 2.**2. **Paid the balance of $2,000 on the debt owed to the Small Business Government Agency.** The loan is interest-free.3. **Performed $32,000 of security services for numerous local events during the year; $21,000 was on account and $11,000 was for cash.**4. **On May 1, paid $3,000 for 12 months' rent in advance.**5. **Purchased supplies on account for $700.**6. **Paid salaries expense for the year of $9,000.**7. **Incurred other operating expenses on account, $4,200.**8. **On October 1, Year 3, a customer paid $1,200 for services to be provided over the next 12 months.**9. **Collected $19,000 of accounts receivable during the year.**10. **Paid $5,950 on accounts payable.**11. **Paid $1,800 of advertising expenses for the year.**12. **Paid a dividend to the shareholders of $4,650.**13. **The market value of the land was determined to be $5,500 as of December 31, Year 3.**This data reflects the financial activities and balances of Pacilio Security Services, Inc. at the beginning of and during Year 3,

Pacilio Security Services, Inc. Income Statement For the Year Ended December 31, Year 3 Service…

14. There was $120 of supplies on hand at the end of the year. 15. Recognized the expired rent. 16. Recognized the earned revenue from Year 2 and transaction no. 8. 17. Actrued salaries were $1,000 at December 31, Year 3.

14. There was $120 of supplies on hand at the end of the year. 15. Recognized the expired rent. 16. Recognized the earned revenue from Year 2 and transaction no. 8. 17. Actrued salaries were $1,000 at December 31, Year 3.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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