Question

In: Accounting

The trial balance of Pacilio Security Services, Inc. as of January 1, Year 4, had the...

The trial balance of Pacilio Security Services, Inc. as of January 1, Year 4, had the following normal balances:

Cash $ 12,500
Accounts Receivable 3,500
Supplies 120
Prepaid Rent 1,000
Land 4,000
Unearned Revenue 900
Salaries Payable 1,000
Common Stock 8,000
Retained Earnings 11,220


In Year 4, Pacilio Security Services decided to expand its business to sell security systems and offer 24-hour alarm monitoring services. It plans to phase out its current service of providing security personnel at various events. The following summary transactions occurred during Year 4:

  1. Paid the salaries payable from Year 3.
  2. Acquired an additional $42,000 cash from the issue of common stock.
  3. Rented a larger building on May 1; paid $6,000 for 12 months’ rent in advance.
  4. Paid $800 cash for supplies to be used over the next several months by the business.
  5. Purchased alarm systems for resale at a cost of $12,000. The alarm systems were purchased on account with the terms 2/10, n/30.
  6. Returned alarm systems that had a cost of $240.
  7. Installed alarm systems during the year for a total sales amount of $20,000. Sales of $15,000 were on account, while $5,000 were cash sales.
  8. The cost of the systems sold in Event 7 amounted to $9,440.
  9. Paid the installers and other employees a total of $9,500 in salaries.
  10. Sold $36,000 of monitoring services for the year. The services are billed to the customers each month.
  11. Paid cash on accounts payable. The payment was made before the discount period expired. At the time of purchase, the inventory has a cost of $8,000 and was purchased under the terms 2/10, n/30.
  12. Paid cash to settle additional accounts payable in the amount of $2,780. The payment was made after the discount period expired.
  13. Collected $43,000 of accounts receivable during the year.
  14. Performed $12,000 of security services for area events; $9,000 was on account and $3,000 was for cash.
  15. Paid advertising cost of $1,620 for the year.
  16. Paid $1,100 for utilities expense for the year.
  17. Paid a dividend of $12,000 to the shareholders.

Adjustment Information

  1. Supplies of $150 were on hand at the end of the year.
  2. Recognized the expired rent for the year.
  3. Recognized the balance of the unearned revenue; cash was received in Year 3.
  4. Accrued salaries at December 31, Year 4, were $1,500.

Solutions

Expert Solution

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

The trial balance of Pacilio Security Services, Inc. as of January 1, Year 5, had the...
The trial balance of Pacilio Security Services, Inc. as of January 1, Year 5, had the following normal balances: Cash $ 62,860 Accounts receivable 20,500 Supplies 150 Prepaid rent 2,000 Merchandise inventory (9 @ $240) 2,160 Land 4,000 Accounts payable 980 Salaries payable 1,500 Common stock 50,000 Retained earnings 39,190 During Year 5, Pacilio Security Services experienced the following transactions: Paid the salaries payable from Year 4. On January 15, purchased 20 standard alarm systems for cash at a cost...
The trial balance of Pacilio Security Services, Inc. as of January 1, Year 6, had the...
The trial balance of Pacilio Security Services, Inc. as of January 1, Year 6, had the following normal balances: Cash $ 74,210 Accounts Receivable 13,500 Supplies 200 Prepaid Rent 3,200 Merchandise Inventory (24 @ $265; 1 @ $260) 6,620 Land 4,000 Accounts Payable 1,950 Unearned Revenue 900 Salaries Payable 1,000 Common Stock 50,000 Retained Earnings 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,...
The trial balance of Pacilio Security Services, Inc. as of January 1, Year 5, had the...
The trial balance of Pacilio Security Services, Inc. as of January 1, Year 5, had the following normal balances: Cash $ 62,860 Accounts receivable 20,500 Supplies 150 Prepaid rent 2,000 Merchandise inventory (9 @ $240) 2,160 Land 4,000 Accounts payable 980 Salaries payable 1,500 Common stock 50,000 Retained earnings 39,190 During Year 5, Pacilio Security Services experienced the following transactions: Paid the salaries payable from Year 4. On January 15, purchased 20 standard alarm systems for cash at a cost...
The trial balance of Pacilio Security Services, Inc. as of January 1, Year 9, had the...
The trial balance of Pacilio Security Services, Inc. as of January 1, Year 9, had the following normal balances: Cash $ 93,380 Petty cash 100 Accounts receivable 21,390 Allowance for doubtful accounts 2,485 Supplies 180 Prepaid rent 3,000 Merchandise inventory (23 @ $280) 6,440 Equipment 9,000 Van 27,000 Accumulated depreciation 14,900 Salaries payable 1,500 Common stock 50,000 Retained earnings 91,605 During Year 9, Pacilio Security Services experienced the following transactions: Paid the salaries payable from Year 8. Paid $9,000 on...
The trial balance of Pacilio Security Services, Inc. as of January 1, Year 6, had the...
The trial balance of Pacilio Security Services, Inc. as of January 1, Year 6, had the following normal balances: Cash $ 74,210 Accounts Receivable 13,500 Supplies 200 Prepaid Rent 3,200 Merchandise Inventory (24 @ $265; 1 @ $260) 6,620 Land 4,000 Accounts Payable 1,950 Unearned Revenue 900 Salaries Payable 1,000 Common Stock 50,000 Retained Earnings 47,880 During Year 6, Pacilio Security Services experienced the following transactions: Paid the salaries payable from Year 5. On March 1, Year 6, Pacilio established...
The trial balance of Pacilio Security Services, Inc. as of January 1, Year 11, had the following normal balances:
Chapter 11 Comprehensive ProblemThe trial balance of Pacilio Security Services, Inc. as of January 1, Year 11, had the following normal balances:Cash$113,718Petty cash100Accounts receivable39,390Allowance for doubtful accounts4,662Supplies210Merchandise inventory (48 @ $300)14,400Equipment9,000Van27,000Building125,000Accumulated depreciation28,075Land25,000Sales tax payable390Employee income tax payable1,000FICA—Social Security tax payable840FICA—Medicare tax payable210Warranty payable918Unemployment tax payable945Notes payable—Building92,762Bonds payable50,000Discount on bonds payable800Common stock50,000Retained earnings124,816During Year 11, Pacilio Security Services experienced the following transactions:Paid the sales tax payable from Year 10.Paid the balance of the payroll liabilities due for Year 10 (federal income...
The trial balance of pacillo security services inc as of January 1 2018 had the following...
The trial balance of pacillo security services inc as of January 1 2018 had the following normal balances                Cash-                                                                                               $93,708                Petty Cash-    100                Accounts Receivable- 22,540                Allowance for doubtful accounts- 1,334                Supplies- 250                Prepaid rent-    3,600                Merchandise inventory (18@$285)-    5,130                Land- 4,000                Salaries Payable-    2,100                Common Stock-    50,000                Retained Earnings- 75,894 During 2018 Pacillo Security Services experienced the following transactions: Paid the salaries payable...
The trial balance of Palicio Security Services Inc. as of January 1, 2016 had following normal balances:
The trial balance of Palicio Security Services Inc. as of January 1, 2016 had following normal balances: The following transactions took place during 2016 for Palicio Security Service 1. Paid the salaries payable from 2015. 2. On March 1, 2016, Palicio established a $100 petty cash fund to handles expenditures. 3. Paid $4,800 on May 1, 2016, for one year's lease on the company van in advance. 4. Paid $7,200 on May 2, 2016 for one year's office rent in advance. 5. Purchased $400 of supplies...
The following is the trial balance for Eazy Services, Inc.: Eazy Services, Inc. Trial Balance For...
The following is the trial balance for Eazy Services, Inc.: Eazy Services, Inc. Trial Balance For the Year Ended December 31, 201X DR CR Cash $50,250 Accounts Receivable 27,900 Office Equipment 45,000 Accounts Payable 37,250 Common Stock 60,300 Dividends 2,500 Retained Earnings 00 Sales Revenue 70,000 Salary Expense 33,650 Operating Expense 8,250 167,550 167,550 Prepare an Income Statement, Statement of Changes in Stockholders’ Equity and a Balance Sheet. (Assume that the company issued $60,300 of common stock on January 2,...
Dreamland Security Services Inc. had the following account balances as of January 1, 2020: 1. On...
Dreamland Security Services Inc. had the following account balances as of January 1, 2020: 1. On January 1, 2020, Dreamland purchased land for $10,000 and a building for $90,000. The land was paid for with cash. The building was paid for with $5,000 cash and the remainder was financed with a 10-year notes payable. 2. Paid the accounts payable balance from 2019. 3. Purchase $500 of supplies on account. 4. Purchased 100 alarm systems (inventory) on account at a cost...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT