The trial balance of Pacilio Security Services, Inc. as of January 1, Year 3, had the following normal balances: Cash Accounts Receivable Supplies Prepaid Rent Land Accounts Payable Unearned Revenue Salaries Payable Notes Payable Common Stock Retained Earnings $8,900 1,500 65 800 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 $11000 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. O. 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. 16. Recognized the earned revenue from Year 2 and transaction no. 8. 17. Accrued 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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Question
Answer the statement of cf.
General
Journal
General
Income
Changes in
SE
Balance
Sheet
Statement
of CF
Requirement
Analysis
Trial Balance
Ledger
Statement
Prepare the statement of cash flow for year ended December 31, Year 3. (Amounts to be deducted should be indicated with a
minus sign.)
Pacilio Security Services, Inc.
Statement of Cash Flows
For the Year Ended December 31, Year 3
Cash flows from operating activities:
Cash payment for expenses
Net cash flow from operating activities
$
Cash flows from investing activities:
Net cash flow from investing activities
Cash flows from financing activities:
Net cash flow from financing activities
Ending cash balance
< Balance Sheet
Transcribed Image Text:General Journal General Income Changes in SE Balance Sheet Statement of CF Requirement Analysis Trial Balance Ledger Statement Prepare the statement of cash flow for year ended December 31, Year 3. (Amounts to be deducted should be indicated with a minus sign.) Pacilio Security Services, Inc. Statement of Cash Flows For the Year Ended December 31, Year 3 Cash flows from operating activities: Cash payment for expenses Net cash flow from operating activities $ Cash flows from investing activities: Net cash flow from investing activities Cash flows from financing activities: Net cash flow from financing activities Ending cash balance < Balance Sheet
The trial balance of Pacilio Security Services, Inc. as of January 1, Year 3, had the following normal balantes:
$8,900
1,500
65
800
4,000
1,050
Cash
Accounts Receivable
Supplies
Prepaid Rent
Land
Accounts Payable
Unearned Revenue
Salaries Payable
Notes Payable
Common Stock
Retained Earnings
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, $4200.
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.
O. 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.
16. Recognized the earned revenue from Year 2 and transaction no. 8.
17. Accrued salaries were $1,000 at December 31, Year 3.
1 of 1
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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 balantes: $8,900 1,500 65 800 4,000 1,050 Cash Accounts Receivable Supplies Prepaid Rent Land Accounts Payable Unearned Revenue Salaries Payable Notes Payable Common Stock Retained Earnings 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, $4200. 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. O. 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. 16. Recognized the earned revenue from Year 2 and transaction no. 8. 17. Accrued salaries were $1,000 at December 31, Year 3. 1 of 1 Next Drou
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