$8,900 ash ccounts Receivable upplies repaid Rent 1,500 65 800 and ccounts Payable Inearned Revenue Galaries Payable. lotes Payable Common Stock Retained Earnings 4,000 1,050 200 1,200 2,000 8,000 2,815 aring Year 3, Pacilio Security Services experienced the following transactions: Paid the salaries payable from Year 2. Paid the balance of $2,000 on the debt owed to the Small Business Government Agency. The loan is interc Performed $32,000 of security services for numerous local events during the year; $21,000 was on accoun cash. On May 1, paid $3,000 for 12 months' rent in advance. Purchased supplies on account for $700. Paid salaries expense for the year of $9,00o0. Incurred other operating expenses on account, $4,200. On October 1, Year 3, a customer paid $1,200 for services to be provided over the next 12 months. Collected $19,000 of accounts receivable during the year. Paid $5,950 on accounts payable. Paid $1,800 of advertising expenses for the year. Paid a cash dividend to the shareholders of $4,650. The market value of the land was determined to be $5,500 at December 31, Year 3. djustments -There was $120 of supplies on hand at the end of the year. Recognized the expired rent. Recognized the earned revenue from Year 2 and transaction no. 8. Accrued salaries were $1,000 at December 31, Year 3.
$8,900 ash ccounts Receivable upplies repaid Rent 1,500 65 800 and ccounts Payable Inearned Revenue Galaries Payable. lotes Payable Common Stock Retained Earnings 4,000 1,050 200 1,200 2,000 8,000 2,815 aring Year 3, Pacilio Security Services experienced the following transactions: Paid the salaries payable from Year 2. Paid the balance of $2,000 on the debt owed to the Small Business Government Agency. The loan is interc Performed $32,000 of security services for numerous local events during the year; $21,000 was on accoun cash. On May 1, paid $3,000 for 12 months' rent in advance. Purchased supplies on account for $700. Paid salaries expense for the year of $9,00o0. Incurred other operating expenses on account, $4,200. On October 1, Year 3, a customer paid $1,200 for services to be provided over the next 12 months. Collected $19,000 of accounts receivable during the year. Paid $5,950 on accounts payable. Paid $1,800 of advertising expenses for the year. Paid a cash dividend to the shareholders of $4,650. The market value of the land was determined to be $5,500 at December 31, Year 3. djustments -There was $120 of supplies on hand at the end of the year. Recognized the expired rent. Recognized the earned revenue from Year 2 and transaction no. 8. Accrued salaries were $1,000 at December 31, Year 3.
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter8: Revenue Recognition, Receivables, And Advances From Customers
Section: Chapter Questions
Problem 26E
Related questions
Question
Answer full question.
Transcribed Image Text:The trial balance of Pacilio Security Services, Inc. as of January 1, Year 3, had the following normal balances:
Cash
Accounts Receivable
Supplies
Prepaid Rent
Land
Accounts Payable
Unearned Revenue
Salaries Payable
Notes Payable
Common Stock
Retained Earnings
$8,900
1,500
65
800
4,000
1,050
200
1,200
2,000
8,000
2,815
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.
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.
15. Recognized the expired rent.
16. Recognized the earned revenue from Year 2 and transaction no.8.
17. Accrued salaries were $1,000 at December 31, Year 3.
Transcribed Image Text:General
General
Income
Changes in
SE
Requirement
Trial Balance
Balance
Statement
Analysis
Journal
Ledger
Statement
Sheet
of CF
Prepare the statement of cash flow for year ended December 31, Year 3. (Amounts to be deducted should be indicated with a
minus sign.)
Pacilio Security Services, Inc.
Statement of Cash Flows
For the Year Ended December 31, Year 3
Cash flows from operating activities:
Cash payment for expenses
765
Net cash flow from operating activities
Cash flows from investing activities:
Net cash flow from investing activities
Cash flows from financing activities:
Net cash flow from financing activities
Ending cash balance
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