The trial balance of Pacilio Security Services, Inc. as ofJanuary 1, Year 6, had the following normal balances: Cash $ 74,210Accounts Receivable 13,500 Supplies 200 Prepaid Rent 3,200Merchandise Inventory (24 @ $265; 1 @ $260) 6,620 Land 4,000Accounts Payable 1,950 Unearned Revenue 900 Salaries Payable 1,000Common Stock 50,000 Retained Earnings 47,880 During Year 6, PacilioSecurity Services experienced the following transactions: Paid thesalaries payable from Year 5. On March 1, Year 6, Pacilioestablished a $100 petty cash fund to handle small expenditures.Paid $4,800 on March 1, Year 6, for a one-year lease on the companyvan in advance. Paid $7,200 on May 2, Year 6, for one year’s officerent in advance. Purchased $400 of supplies on account. Purchased100 alarm systems for $28,000 cash during the year. Sold 102 alarmsystems for $57,120. All sales were on account. Record the cost ofgoods sold related to the sale from Event 7 using the FIFO method.Paid $2,100 on accounts payable during the year. Replenished thepetty cash fund on August 1. At this time, the petty cash fund hadonly $7 of currency left. It contained the following receipts:office supplies expense, $23; cutting grass, $55; and miscellaneousexpense, $14. Billed $52,000 of monitoring services for the year.Paid installers and other employees a total of $25,000 cash forsalaries. Collected $89,300 of accounts receivable during the year.Paid $3,600 of advertising expense during the year. Paid $2,500 ofutilities expense for the year. Paid a dividend of $10,000 to theshareholders. Adjustment There was $160 of supplies on hand at theend of the year. Recognized the expired rent for both the van andthe office building for the year. (The rent for both the van andthe office remained the same for Year 5 and Year 6.) Recognized thebalance of the revenue earned in Year 6 where cash had beencollected in Year 5. Accrued salaries at December 31, Year 6, were$1,400. The following information is available for the bankreconciliation: (1) Checks written but not paid by the bank,$8,350. (2) A deposit of $6,500 made on December 31, Year 6, hadbeen recorded but was not shown on the bank statement. (3) A debitmemo for $55 for a new supply of checks. (Hint: Use Office SuppliesExpense account.) (4) A credit memo for $30 for interest earned onthe checking account. (5) An NSF check for $120. (6) The balanceshown on the bank statement was $80,822. Recorded any debit memosor checks not included on books as part of the bank reconciliation.Recorded any credit memos or interest received not included onbooks as part of the bank reconciliation.
A. Changes in SE
B. Stmt of Cash Flows
C. Bank Reconciliation
