Please do the income statement . changes in se and balance sheet. ### Understanding the Components of an Income StatementThe image displays an unadjusted income statement for Pacilio Security Services, Inc. Here's a breakdown of what you would typically find on an income statement, along with the layout in the image.#### Pacilio Security Services, Inc.#### Income Statement#### For the Year Ended December 31, Year 5**1. Revenues:**- This section will list different revenue streams for the company. However, in the provided image, the specific revenue item lines are left blank. The total revenues will eventually summarize these figures. ``` XXXX XXXX XXXX Total Revenues: XXXX ```**2. Cost of Goods Sold (COGS):**- Initially set to 0 in this statement. The COGS line item represents the direct costs attributable to the production of the goods sold by the company. ``` Cost of Goods Sold: 0 ```**3. Expenses:**- Broken down into various categories, which in the visible image are left blank. Common line items under expenses might include salaries, rent, utilities, etc. Summarized into total operating expenses. ``` XXXX XXXX XXXX Total Operating Expenses: 0 ```**4. Net Operating Income:**- This is calculated as Total Revenues minus Cost of Goods Sold and Total Operating Expenses. ``` Net Operating Income: 0 ```#### Instructions:The users are instructed to choose the appropriate accounts to be reported on the income statement. They are required to calculate and input the net income or loss for the period. Based on their selection, unadjusted, adjusted, or post-closing balances will be displayed for each account.#### Navigation Tabs:- **Requirement, General Journal, General Ledger, Trial Balance, Income Statement, Changes in SE, Balance Sheet, Statement of CF, Analysis:** These tabs likely help in navigating through different sections of the financial statement preparation process.#### Interactive Features:- **Trial Balance and Changes in SE (Shareholder's Equity) Buttons:** These buttons are present to potentially view related financial statements and make necessary adjustments.This layout and explanation serve to educate users on the structure and components of an income statement. They also highlight the importance of ensuring that all relevant financial data is recorded and accurately reflected in the statement. ### Financial Accounting - Case Study: Pacilio Security Services, Inc.**Trial Balance as of January 1, Year 5**:The trial balance of Pacilio Security Services, Inc. as of January 1, Year 5, is as follows (all amounts are in dollars):- **Cash**: 62,860- **Accounts Receivable**: 20,500- **Supplies**: 150- **Prepaid Rent**: 2,000- **Merchandise Inventory (9 @ $240)**: 2,160- **Land**: 4,000- **Accounts Payable**: 980- **Salaries Payable**: 500- **Common Stock**: 50,000- **Retained Earnings**: 39,190### Transactions during Year 5During Year 5, Pacilio Security Services experienced the following transactions:1. **Paid the salaries payable from Year 4**.2. On **January 15**, **purchased 20 standard alarm systems** for cash at a cost of $250 each.3. On **February 1**, **paid the accounts payable** of $980, but not within the discount period. (The company uses the gross method.)4. On **March 1**, **leased a business van**. Paid $4,800 for one year’s lease in advance.5. Paid **$7,200 on May 1** for one year’s rent on the office in advance.6. Purchased with cash **$500 of supplies** to be used over the next several months by the business.7. Purchased with cash **another 25 alarm systems** on August 1 for resale at a cost of $260 each.8. On **September 15**, purchased an account **30 standard alarm systems** at a cost of $265.9. Installed **60 standard alarm systems for $33,000; sales of $22,000 were on account**, while $11,000 were cash sales.10. **Record the cost of goods sold** relating to Item Event 9 using the perpetual FIFO method.11. Made a full refund to a dissatisfied customer who returned her alarm system. The sale had been a cash sale for $550 with a cost of $260. **Record the reversal of revenue**.12. Made a full refund to a dissatisfied customer

Given: Cash $ 62,860 Accounts receivable 20,500 Supplies 150 Prepaid rent 2,000…

Answered: General Journal General Income Changes…

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q