Cash Accounts Receivable Supplies Prepaid Rent Merchandise Inventory (24 e $265; 1 e $260) Land $74,210 13,500 200 3,200 6,620 4,000 1,950 980 Accounts Payable Unearned Revenue Salaries Payable Common Stock Retained Earnings 1, eee 50, 800 47,880 During Year 6, Pacilio Security Services experienced the foliowing 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 year's 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. O. 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 miscellancous expense, $14. 11. Billed $52,000 of monitoring services for the year. 2. Paid installers and other employees a total of $25,000 cash for salaries f00 200 of arcounts receivable during the year.
Cash Accounts Receivable Supplies Prepaid Rent Merchandise Inventory (24 e $265; 1 e $260) Land $74,210 13,500 200 3,200 6,620 4,000 1,950 980 Accounts Payable Unearned Revenue Salaries Payable Common Stock Retained Earnings 1, eee 50, 800 47,880 During Year 6, Pacilio Security Services experienced the foliowing 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 year's 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. O. 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 miscellancous expense, $14. 11. Billed $52,000 of monitoring services for the year. 2. Paid installers and other employees a total of $25,000 cash for salaries f00 200 of arcounts receivable during the year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:### Financial Transactions and Adjustments for Year 6 of Pacillo Security Services
#### Balances
- **Cash:** $74,210
- **Accounts Receivable:** $13,580
- **Supplies:** $2,200
- **Prepaid Rent:** $3,200
- **Merchandise Inventory (A2 @ $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
#### Transactions During Year 6:
1. **Paid salaries:** Paid $4,000 salaries payable from Year 5.
2. **Petty cash fund:** Established a $100 petty cash fund on March 1, Year 6, to handle small expenditures.
3. **Prepaid rent:** Paid $4,800 on March 1, Year 6, for a one-year lease on the company van in advance.
4. **Office rent:** Paid $7,200 on May 2, Year 6, for one year's office rent in advance.
5. **Supplies on account:** Purchased $400 of supplies on account.
6. **Alarm systems purchase:** Purchased 100 alarm systems for $28,000 cash during the year.
7. **Sales of alarm systems:** Sold 102 alarm systems for $57,120. All sales were on account.
8. **Cost of goods sold:** Recorded the cost of goods sold related to the sale from Event 7 using the FIFO method.
9. **Accounts payable:** Paid $2,100 on accounts payable during the year.
10. **Replenished petty cash:** Replenished the petty cash fund on August 1. At this time, the petty cash fund had only $7 of currency left. It contained: office supplies, $23; stamps, $55; and miscellaneous expense, $14.
11. **Monitoring services:** Billed $52,000 of monitoring services to the year.
12. **Salaries:** Paid assorted hourly employees a total of $25,000 cash for salaries.
13. **Accounts receivable:** Collected $89,300 of accounts receivable during the year.
14. **Advertising expense:** Paid
Transcribed Image Text:### Educational Resource: Understanding Financial Statements through Transaction Analysis
#### Pacilio Security Services, Inc.
**Effect of Transactions on Financial Statements - Year 6**
This table helps analyze the effect of various transactions on the financial statements of Pacilio Security Services, Inc. for the year 6. It is divided into two main parts: the Balance Sheet and the Income Statement. The table also includes a column for the Statement of Cash Flows.
##### Instructions:
Indicate whether the transaction increases (+), decreases (−), or has a mixed effect (+/−) on each element of the financial statements. Additionally, in the Cash Flow column, use the letters:
- **OA** for Operating Activity
- **IA** for Investing Activity
- **FA** for Financing Activity
**Table Structure and Columns:**
1. **Transaction Number (1-20):**
- Lists 20 separate transactions to be analyzed.
2. **Balance Sheet Columns:**
- **Assets:** Indicates the effect of transactions on the company's assets.
- **Liabilities:** Indicates the effect on the company's liabilities.
- **Stockholder’s Equity (S. Equity):** Indicates the effect on the company’s equity.
3. **Income Statement Columns:**
- **Revenue:** Indicates the effect on revenue.
- **Expenses:** Indicates the effect on expenses.
- **Net Income:** Indicates the overall effect on net income.
4. **Statement of Cash Flows:**
- Indicates the nature of the cash flow (OA, IA, or FA).
An example transaction (Transaction 1) is pre-filled for reference involving an operating activity (OA) without explicit impact on assets, liabilities, equity, revenue, expenses, or net income.
| Transaction | Assets | Liabilities | S. Equity | Revenue | Expenses | Net Income | Statement of Cash Flows |
|-------------|--------|-------------|-----------|---------|----------|------------|-------------------------|
| 1 | | | | | | | OA |
| 2 | | | | | | | |
| 3 | | | | | | | |
| 4 | | | | | | | |
| 5 | | | | | | | |
| 6 | |
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