Cash Accounts Receivable Supplies Prepaid Rent Merchandise Inventory (24 e $265; 1 e $260) Land Accounts Payable Unearned Revenue Salaries Payable Common Stock Retained Earnings $74,210 13,500 200 3,200 6,620 4,000 1,95e 900 1,000 50,000 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 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 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. Adjustment 17. There was $160 of supplies on hand at the end of the year. 18. 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.) 19. Recognized the balance of the revenue earned in Year 6 where cash had been collected in Year 5. 0. Accrued salaries at December 31, Year 6, were $1,400.
Cash Accounts Receivable Supplies Prepaid Rent Merchandise Inventory (24 e $265; 1 e $260) Land Accounts Payable Unearned Revenue Salaries Payable Common Stock Retained Earnings $74,210 13,500 200 3,200 6,620 4,000 1,95e 900 1,000 50,000 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 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 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. Adjustment 17. There was $160 of supplies on hand at the end of the year. 18. 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.) 19. Recognized the balance of the revenue earned in Year 6 where cash had been collected in Year 5. 0. Accrued salaries at December 31, Year 6, were $1,400.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Answer full question.
Transcribed Image Text:$74,210
13,500
Cash
Accounts Receivable
Supplies
Prepaid Rent
Merchandise Inventory (24 @ $265; 1 @ $260)
18
200
3,200
6,620
4,000
1,950
900
Land
Accounts Payable
Unearned Revenue
Salaries Payable
Common Stock
Retained Earnings
Skipped
1,000
50,000
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 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.
0. 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.
Adjustment
17. There was $160 of supplies on hand at the end of the year.
18. 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.)
19. Recognized the balance of the revenue earned in Year 6 where cash had been collected in Year 5.
0. Accrued salaries at December 31, Year 6, were $1,400.
Transcribed Image Text:General
General
Ledger
Income
Trial Balance statement
Changes in
Balance
Statement
8.
Requirement
Journal
BRS
Analysis
SE
Sheet
of CF
Indicate whether the transaction increases (+), decreases (-), or increases and decreases (+/-) for each element of the financial
statements. Also, in the Cash Flow column, use the letters OA to designate operating activity, IA for investing actiyity, FA for financing
activity. The first transaction is recorded as an example.
pped
Pacilio Security Services, Inc.
Effect of Transactions on Financial Statements - Year 6
Balance Sheet
Income Statement
Statement of Cash
Flows
Net
Assets
= Llabilities +S. Equity Revenue
Expenses =
Transaction
Income
OA
1.
2.
3.
4.
5.
6.
7.
8.
9.
10
11.
12.
13.
14.
15.
16.
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