Answer full question about analysis ### Pacilio Security Services, Inc. - Financial Overview and Transactions for Year 5#### Trial Balance as of January 1, Year 5:**Assets:**- Cash: $62,860- Accounts Receivable: $20,500- Supplies: $150- Prepaid Rent: $2,100- Merchandise Inventory (9 @ $240 each): $2,160- Land: $40,000**Liabilities:**- Accounts Payable: $1,980- Salaries Payable: $1,500**Equity:**- Common Stock: $48,000- Retained Earnings: $39,190#### Transactions During Year 5:1. **Salaries Payable Payment:** - Paid salaries payable from Year 4.2. **Purchase of Alarm Systems:** - On January 15, purchased 20 standard alarm systems for cash at $250 each.3. **Accounts Payable Payment:** - On February 1, paid accounts payable of $980, not within the discount period (gross method utilized).4. **Lease Prepayment:** - On March 1, leased a business van and prepaid $4,800 for one year's lease in advance.5. **Rent Payment:** - Paid $7,200 on May 1 for one year’s rent in advance.6. **Supplies Purchase:** - Purchased $500 worth of supplies to be used over the next several months by the business.7. **Alarm Systems Purchase for Resale:** - Purchased an additional 25 alarm systems on August 1 for resale at $260 each.8. **Alarm Systems on Account:** - Purchased 30 standard alarm systems for $265 each on account on September 5.9. **Alarm Systems Sale:** - Sold 60 standard alarm systems for $33,000, with $22,000 on account and $11,000 as cash sales.10. **Cost of Goods Sold Recording:** - Recorded the cost of goods sold related to Event 9 using the perpetual FIFO method.11. **Revenue and Cost Reversal:** - Issued a full refund to a dissatisfied customer who returned an alarm system sold for cash at $550 with a cost of $260.12. **Additional Refund and Cost Reversal:** - Another refund for an ### Pacillo Security Services, Inc.#### Effect of Transactions on Financial Statements - Year 5This educational module explains how to indicate the effects of various transactions on financial statements. Each transaction could affect different elements across the Balance Sheet, the Income Statement, and the Statement of Cash Flows.**Requirements:**1. **General Journal**2. **General Ledger**3. **Trial Balance**4. **Income Statement**5. **Changes in SE (Stockholders' Equity)**6. **Balance Sheet**7. **Statement of Cash Flows**8. **Analysis****Instructions:**Indicate whether the transaction increases (+), decreases (-), or increases and decreases (+/-) for each element of the financial statements. For the Statement of Cash Flows, use the following designations:- **OA**: Operating Activity- **IA**: Investing Activity- **FA**: Financing ActivityThe first transaction is recorded as an example:#### Transaction Table| # | **Balance Sheet** | **Income Statement** | **Statement of Cash Flows** ||----|----------------------------|----------------------------|-----------------------------|| | Assets | Liabilities | S. Equity | Revenue | Expenses | Net Income | || 1. | - | - | - | - | - | - | OA || 2. | | | | | | | || 3. | | | | | | | || 4. | | | | | | | || 5. | | | | | | | || 6. | | | | | | | || 7. | | | | | | | || 8. | | | | | | | || 9. | | | | | | | || 10.| | | | | | | || 11.| | | | | | | || 12.| | | | | | | || 13

Analysis of the effect of transactions on each element of financial statements states whether the…

The trial balance of Pacilio Security Services, Inc. as of January 1, Year 5, had the following normal balances: $62,860 20,500 Cash Accounts receivable Supplies Prepaid rent Merchandise inventory (9 @ $240) Land Accounts payable Salaries payable Common stock Retained earnings 150 2,000 2,160 4,000 980 1,500 50,000 39,198 During 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 5, purchased on 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. O. Record the cost of goods sold related to the sale from 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 who returned her alarm system. The sale had been a cash sale for $550 with a cost of $260. Record the reversal of cost. 13. Paid installers and other employees a total of $21,000 cash for salaries. 14. Sold $45,000 of monitoring services during the year. The services are billed to the customers each month. 15. Sold an additional monitoring service for $1,200 for one year's senrvice. The customer paid the full amount of $1,200 on October 1. 16. Collected $74,000 of accounts receivable during the year. 17. Paid an additional $6,000 to settle some of the accounts payable. 18. Paid $3,500 of advertising expense during the year. 19. Paid $2,320 of utilities expense for the year. 0. Paid a dividend of $15,000 to the shareholders.