The trial balance of Pacilio Security Services, Incorporated as of January 1, Year 3, had the following normal balances: $8,900 1,500 65 800 Cash Accounts Receivable. Supplies Prepaid Rent Land 4,000 1,050 200 Accounts Payable Unearned Revenue Salaries Payable Notes Payable Common Stock Retained Earnings 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. 1,200 2,000 8,000 2,815 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. 10. 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. 5. Recognized the expired rent. 16. Recognized the earned revenue from Year 2 and transaction number 8. 17. Accrued salaries were $1,000 at December 31, Year 3.
Please create a general journal, general ledger,
“Since you have posted a question with multiple sub-parts, we will provide the solution only to the first three sub-parts as per our Q&A guidelines. Please repost the remaining sub-parts separately.”
Journal Entries are the recording of transactions of the organization. All the transactions are recorded using journals in the form of debit and credit. After recording transactions in the journal next step is to transfer them into ledgers. Ledgers are the individual account of real personal and nominal. After transferring all the transactions into Ledgers Company closes the accounts and transfers those into the summarized form of trial balance.
Step by step
Solved in 4 steps with 2 images