The trial balance of Pacilio Security Services, Inc. as of January 1, Year 3, had the following normal balances: Cash $8,900 1,500 65 Accounts Receivable Supplies Prepaid Rent Land 800 4, 000 1,050 200 Accounts Payable Unearned Revenue Salaries Payable Notes Payable Common Stock Retained Earnings 1,200 2,000 8,000 2,815 During 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 $9000. 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. 0. Paid $5,950 on accounts payable. 11. Paid $1,800 of advertising expenses for the year. 2. Paid a cash dividend to the shareholders of $4,650. 13. The market value of the land was determined to be $5,500 at December 31, Year 3. Adjustments 14. There was $120 of supplies on hand at the end of the year. 15. Recognized the expired rent. 6. Recognized the earned revenue from Year 2 and transaction no. 8. 17. Accrued salaries were $1,000 at December 31, Year 3.
The trial balance of Pacilio Security Services, Inc. as of January 1, Year 3, had the following normal balances: Cash $8,900 1,500 65 Accounts Receivable Supplies Prepaid Rent Land 800 4, 000 1,050 200 Accounts Payable Unearned Revenue Salaries Payable Notes Payable Common Stock Retained Earnings 1,200 2,000 8,000 2,815 During 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 $9000. 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. 0. Paid $5,950 on accounts payable. 11. Paid $1,800 of advertising expenses for the year. 2. Paid a cash dividend to the shareholders of $4,650. 13. The market value of the land was determined to be $5,500 at December 31, Year 3. Adjustments 14. There was $120 of supplies on hand at the end of the year. 15. Recognized the expired rent. 6. Recognized the earned revenue from Year 2 and transaction no. 8. 17. Accrued salaries were $1,000 at December 31, Year 3.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The trial balance of Pacilio Security Services, Inc. as of January 1, Year 3, had the following normal balances:
Cash
$8,900
1,500
65
Accounts Receivable
Supplies
Prepaid Rent
Land
Accounts Payable
800
Unearned Revenue
Salaries Payable
Notes Payable
Common Stock
Retained Earnings
4,000
1,050
200
1,200
2,000
8,000
2,815
During 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.
0. Paid $5,950 on accounts payable.
11. Paid $1,800 of advertising expenses for the year.
12. Paid a cash dividend to the shareholders of $4,650.
13. The market value of the land was determined to be $5,500 at December 31, Year 3.
Adjustments
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. Accrued salaries were $1,000 at December 31, Year 3.
Transcribed Image Text:Adjusted
General Ledger Account
Cash
Accounts receivable
No.
Date
Debit
Credit
Balance
No.
Date
Debit
Credit
Balance
Jan 01
8,900
Jan 01
1,500
Supplies
Prepaid rent
No.
Date
Debit
Credit
Balance
No.
Date
Debit
Credit
Balance
Jan 01
65
Jan 01
800
Land
Accounts payable
No.
Date
Debit
Credit
Balance
No.
Date
Debit
Credit
Balance
Jan 01
4,000
Jan 01
1,050
Salaries payable
Unearned revenue
No.
Date
Debit
Credit
Balance
No.
Date
Debit
Credit
Balance
Jan 01
1,200
Jan 01
200
Notes payable
Common stock
No.
Date
Debit
Credit
Balance
No.
Date
Debit
Credit
Balance
Jan 01
2,000
Jan 01
8,000
Retained earnings
No.
Date
Debit
Credit
Balance
Jan 01
2,815
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