Answer full question please. Choose the appropriate accounts to be reported on the income statement. However, you will need to calculate and enter theamount of the net Income or loss for the period. The unadjusted, adjusted, or post-closing balances will appear for eachaccount, based on your selection.UnadjustedPacilio Security Services, Inc.Income StatementFor the Year Ended December 31, Year 6RevenuesTotal RevenuesExpensesTotal Operating ExpensesNet Operating IncomeNon-Operating Items The trial balance of Pacilio Security Services, Inc. as of January 1, Year 6, had the following normal balances:18CashAccounts ReceivableSuppliesPrepaid RentMerchandise Inventory (24 @ $265; 1 @ $260)LandAccounts PayableUnearned RevenueSalaries Payable$74,21013,5002003,2006,6204,0001,950900Skipped1,00050,00047,880Common StockRetained EarningsDuring Year 6, Pacilio Security Services experienced the following transactions:1. Paid the salaries payable from Year 5.2. On March 1, Year 6, Pacilio established a $100 petty cash fund to handle small expenditures.3. Paid $4,800 on March 1, Year 6, for a one-year lease on the company van in advance.4. Paid $7,200 on May 2, Year 6, for one year's office rent in advance.5. Purchased $400 of supplies on account.6. Purchased 100 alarm systems for $28,000 cash during the year.7. Sold 102 alarm systems for $57,120. All sales were on account.8. Record the cost of goods sold related to the sale from Event 7 using the FIFO method.9. Paid $2,100 on accounts payable during the year.O. Replenished the petty cash fund on August 1. At this time, the petty cash fund had only $7 of currency left, It contained the followingreceipts: office supplies expense, $23; cutting grass, $55; and miscellaneous expense, $14.11. Billed $52,000 of monitoring services for the year12. Paid installers and other employees a total of $25,000 cash for salaries.13. Collected $89,300 of accounts receivable during the year.14. Paid $3,600 of advertising expense during the year.15. Paid $2,500 of utilities expense for the year.16. Paid a dividend of $10,000 to the shareholders.Adjustment17. There was $160 of supplies on hand at the end of the year.18. Recognized the expired rent for both the van and the office building for the year. (The rent for both the van and the office remainedthe same for Year 5 and Year 6.)

In the given question we are required to prepare the income statement. What is the income statement?…

The trial balance of Pacilio Security Services, Inc. as of January 1, Year 6, had the following normal balances: 18 Cash Accounts Receivable Supplies Prepaid Rent Merchandise Inventory (24 @ $265; 1 @ $260) Land Accounts Payable Unearned Revenue Salaries Payable Common Stock Retained Earnings $74,210 13,500 200 3,200 6,620 4,000 1,958 900 Skipped 1,000 50,000 47,880 During Year 6, Pacilio Security Services experienced the following transactions: 1. Paid the salaries payable from Year 5. 2. On March 1, Year 6, Pacilio established a $100 petty cash fund to handle small expenditures. 3. Paid $4,800 on March 1, Year 6, for a one-year lease on the compeny van in advance. 4. Paid $7,200 on May 2, Year 6, for one year's office rent in advance. 5. Purchased $400 of supplies on account. 6. Purchased 100 alarm systems for $28,000 cash during the year. 7. Sold 102 alarm systems for $57,120. All sales were on account. 8. Record the cost of goods sold related to the sale from Event 7 using the FIFO method. 9. Paid $2,100 on accounts payable during the year. O. Replenished the petty cash fund on August 1. At this time, the petty cash fund had only $7 of currency left. It contained the following receipts: office supplies expense, $23; cutting grass, $55; and miscellaneous expense, $14. 11. Billed $52,000 of monitoring services for the year. 12. Paid installers and other employees a total of $25,000 cash for salaries. 13. Collected $89,300 of accounts receivable during the year. 14. Paid $3,600 of advertising expense during the year. 15. Paid $2,500 of utilities expense for the year. 16. Paid a dividend of $10,000 to the shareholders. Adjustment 17. There was $160 of supplies on hand at the end of the year. 8. Recognized the expired rent for both the van and the office building for the year. (The rent for both the van and the office remained the same for Year 5 and Year 6.)

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q