The trial balance of Pacilio Security Services, Inc. as of January 1, Year 5, had the following normal balances: 26 Cash $62,860 20,500 15e 2,e00 2,160 4,000 980 1,500 50,000 39, 190 Accounts receivable Supplies Prepaid rent Merchandise inventory (9 e $240) Land Accounts payable Salaries payable Common stock Retained earnings Skipped 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 cach. 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. 2. 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. 5. Sold an additional monitoring service for $1.200 for one year's service. 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. 9. Paid $2,320 of utilities expense for the year. 0. Paid a dividend of $15,000 to the shareholders.
The trial balance of Pacilio Security Services, Inc. as of January 1, Year 5, had the following normal balances: 26 Cash $62,860 20,500 15e 2,e00 2,160 4,000 980 1,500 50,000 39, 190 Accounts receivable Supplies Prepaid rent Merchandise inventory (9 e $240) Land Accounts payable Salaries payable Common stock Retained earnings Skipped 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 cach. 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. 2. 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. 5. Sold an additional monitoring service for $1.200 for one year's service. 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. 9. Paid $2,320 of utilities expense for the year. 0. Paid a dividend of $15,000 to the shareholders.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Answer full question.
![### Trial Balance of Pacillo Security Services, Inc. (as of January 1, Year 5)
#### Normal Balances:
- **Cash:** $62,868
- **Accounts Receivable:** $20,580
- **Supplies:** $150
- **Prepaid Rent:** $2,100
- **Merchandise Inventory:** (9 @ $240) $2,160
- **Land:** $4,800
- **Accounts Payable:** $980
- **Salaries Payable:** $1,800
- **Common Stock:** $50,000
- **Retained Earnings:** $39,190
### Transactions during Year 5:
1. **Paid the salaries payable from Year 4.**
2. **January 15:** Purchased 20 standard alarm systems for cash at a cost of $250 each.
3. **February 1:** Paid the accounts payable of $980, not within the discount period (using gross method).
4. **March 1:** Leased a business van and paid $4,800 for one year's lease in advance.
5. **May 1:** Paid $7,200 for one year’s rent on the office in advance.
6. **Purchased $500 of supplies paid in cash**, to be used over several months by the business.
7. **August 1:** Purchased 25 alarm systems for resale at a cost of $260 each, paid in cash.
8. **September 5:** Purchased on account 30 standard alarm systems at a cost of $265 each.
9. **Installed 60 standard alarm systems for $33,000:**
- Sales of $22,000 were on account.
- Sales of $11,000 were cash sales.
10. **Recorded the cost of goods sold ($550) for the sale from Event 9 using the perpetual FIFO method.**
11. **Refunded a dissatisfied customer who returned an alarm system.**
- The sale had been a cash sale for $550 with a cost of $260.
- Recorded the reversal of revenue.
12. **Refunded another dissatisfied customer who returned an alarm system.**
- The sale had been a cash sale for $550 with a cost of $260.
- Recorded the reversal of cost.
13. **Paid all installers and other employees a total of $21,000 in cash for salaries.**
14. **Sold monitoring](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb75e2346-ebf2-4e14-802c-14c74b6109ef%2Fbde245d4-9984-4184-adc7-96c8bef91c9d%2F9h9kym2r_processed.jpeg&w=3840&q=75)
Transcribed Image Text:### Trial Balance of Pacillo Security Services, Inc. (as of January 1, Year 5)
#### Normal Balances:
- **Cash:** $62,868
- **Accounts Receivable:** $20,580
- **Supplies:** $150
- **Prepaid Rent:** $2,100
- **Merchandise Inventory:** (9 @ $240) $2,160
- **Land:** $4,800
- **Accounts Payable:** $980
- **Salaries Payable:** $1,800
- **Common Stock:** $50,000
- **Retained Earnings:** $39,190
### Transactions during Year 5:
1. **Paid the salaries payable from Year 4.**
2. **January 15:** Purchased 20 standard alarm systems for cash at a cost of $250 each.
3. **February 1:** Paid the accounts payable of $980, not within the discount period (using gross method).
4. **March 1:** Leased a business van and paid $4,800 for one year's lease in advance.
5. **May 1:** Paid $7,200 for one year’s rent on the office in advance.
6. **Purchased $500 of supplies paid in cash**, to be used over several months by the business.
7. **August 1:** Purchased 25 alarm systems for resale at a cost of $260 each, paid in cash.
8. **September 5:** Purchased on account 30 standard alarm systems at a cost of $265 each.
9. **Installed 60 standard alarm systems for $33,000:**
- Sales of $22,000 were on account.
- Sales of $11,000 were cash sales.
10. **Recorded the cost of goods sold ($550) for the sale from Event 9 using the perpetual FIFO method.**
11. **Refunded a dissatisfied customer who returned an alarm system.**
- The sale had been a cash sale for $550 with a cost of $260.
- Recorded the reversal of revenue.
12. **Refunded another dissatisfied customer who returned an alarm system.**
- The sale had been a cash sale for $550 with a cost of $260.
- Recorded the reversal of cost.
13. **Paid all installers and other employees a total of $21,000 in cash for salaries.**
14. **Sold monitoring
![**Cash Flow Statement as of December 31, Year 5**
---
### Pacillo Security Services, Inc.
**Statement of Cash Flows**\
_For the Year Ended December 31, Year 5_
**Cash Flows from Operating Activities:**
- (Details of cash flows from operating activities, such as cash receipts from customers and cash payments for expenses, would be listed here)
**Net Cash Flow from Operating Activities:**
- \$0 (The net total for operating activities)
**Cash Flows from Investing Activities:**
- (Details of cash flows from investing activities, such as purchase of equipment or sale of investments, would be listed here)
**Net Cash Flow from Investing Activities:**
- \$0 (The net total for investing activities)
**Cash Flows from Financing Activities:**
- (Details of cash flows from financing activities, such as issuance of shares or repayment of loans, would be listed here)
**Net Cash Flow from Financing Activities:**
- \$0 (The net total for financing activities)
**Ending Cash Balance:**
- \$0 (The closing cash balance for the period)
At the bottom of the statement, there are options to navigate to the **Balance Sheet** or **Analysis** sections, which would provide additional financial context and detailed accounting insights.
*Note: Ensure all specific monetary values and transaction details are included while maintaining accurate documentation for each cash flow section.*](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb75e2346-ebf2-4e14-802c-14c74b6109ef%2Fbde245d4-9984-4184-adc7-96c8bef91c9d%2Fvs2bx4k_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Cash Flow Statement as of December 31, Year 5**
---
### Pacillo Security Services, Inc.
**Statement of Cash Flows**\
_For the Year Ended December 31, Year 5_
**Cash Flows from Operating Activities:**
- (Details of cash flows from operating activities, such as cash receipts from customers and cash payments for expenses, would be listed here)
**Net Cash Flow from Operating Activities:**
- \$0 (The net total for operating activities)
**Cash Flows from Investing Activities:**
- (Details of cash flows from investing activities, such as purchase of equipment or sale of investments, would be listed here)
**Net Cash Flow from Investing Activities:**
- \$0 (The net total for investing activities)
**Cash Flows from Financing Activities:**
- (Details of cash flows from financing activities, such as issuance of shares or repayment of loans, would be listed here)
**Net Cash Flow from Financing Activities:**
- \$0 (The net total for financing activities)
**Ending Cash Balance:**
- \$0 (The closing cash balance for the period)
At the bottom of the statement, there are options to navigate to the **Balance Sheet** or **Analysis** sections, which would provide additional financial context and detailed accounting insights.
*Note: Ensure all specific monetary values and transaction details are included while maintaining accurate documentation for each cash flow section.*
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