Answer full question please. The trial balance of Pacilio Security Services, Inc. as of January 1, Year 5, had the following normal balances:Cash$62,86020,500Accounts receivableSuppliesPrepaid rentMerchandise inventory (9 @ $240)LandAccounts payableSalaries payable1502,0002,1604,0009801,50050,00039,190Common stockRetained earningsDuring Year 5, Pacilio Security Services experienced the following transactions:1. Paid the salaries payable from Year 4.2. On January 15, purchased 20 standard alarm systems for cash at a cost of $250 each.3. On February 1, paid the accounts payable of $980, but not within the discount period. (The company uses the gross method.)4. On March 1, leased a business van. Paid $4,800 for one year's lease in advance.5. Paid $7,200 on May 1 for one year's rent on the office in advance.6. Purchased with cash $500 of supplies to be used over the next several months by the business.7. Purchased with cash another 25 alarm systems on August 1 for resale at a cost of $260 each.8. On September 5, purchased on account 30 standard alarm systems at a cost of $265.9. Installed 60 standard alarm systems for $33,00O. Sales of $22,000 were on account, while $11,000 were cash sales.O. Record the cost of goods sold related to the sale from Event 9 using the perpetual FIFO method.11. Made a full refund to a dissatisfied customer who returned her alarm system. The sale had been a cash sale for $550 with a cost of$260. Record the reversal of revenue.12. Made a full refund to a dissatisfied customer who returned her alarm system. The sale had been a cash sale for $550 with a cost of$260. Record the reversal of cost.13. Paid installers and other employees a total of $21,000 cash for salaries.14. Sold $45,000 of monitoring services during the year. The services are billed to the customers each month.15. Sold an additional monítoring service for $1,200 for one year's service. The customer paid the full amount of $1,200 on October 1.16. Collected $74,000 of accounts receivable during the year.17. Paid an additional $6,000 to settle some of the accounts payable.18. Paid $3,500 of advertising expense during the year.19. Paid $2,320 of utilities expense for the year.0. Paid a dividend of $15,000 to the shareholders.16 of 26Next activity. The first transaction is recorded as an example.activity, IA for investing activity, rA ror financingPacilio Security Services, Inc.Effect of Transactions on Financial Statements - Year 5Balance SheetIncome StatementStatement of CashAssets Liabilities + S. Equity RevenueNetTransactionExpenses=FlowsIncomeed1.OA2.3.4.5.6.7.8.9.10.111213.14.15.16.17.18.19.20.21.2223.24

The basic Accounting Equation is Assets = Equity + Liabilities Assets are the resources owned by…

Pacilio Security Services, Inc. Effect of Transactions on Financial Statements - Year 5 Balance Sheet Income Statement Statement of Cash Net Assets = Liabilities + S. Equity Revenue Transaction Expenses = Flows Income 1. OA 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15.

Pacilio Security Services, Inc. Effect of Transactions on Financial Statements - Year 5 Balance Sheet Income Statement Statement of Cash Net Assets = Liabilities + S. Equity Revenue Transaction Expenses = Flows Income 1. OA 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter2: Basic Accounting Systems: Cash Basis

Section: Chapter Questions

Problem 2.1MBA

See similar textbooks

Similar questions

In which section of the statement of cash flows would each of the following transactions be included? For each, identify the appropriate section of the statement of cash flows as operating (O), investing (I), financing (F), or none (N). (Note: some transactions might involve two sections.) A. borrowed from the bank for business loan B. declared dividends, to be paid next year C. purchased treasury stock D. purchased a two-year insurance policy E. purchased plant assets
Classification of Cash Flows The following are several items that might be disclosed on a companys statement of cash flows presented using the indirect method. a. Net income b. Depreciation expense c. Issuance of common stock d. Loss on disposal of equipment e. Purchase of a building f. Decrease in accounts payable g. Converted bonds into common stock h. Sale of long-term investment i. Payment of interest j. Increase in inventory Required: 1. Indicate whether each item should be classified as a cash flow from operating activities, cash flow from investing activities, cash flow from financing activities, or noncash investing and financing activity. 2. CONCEPTUAL CONNECTION Why is the proper classification of cash flows important?
SERIES A EXERCISES IDENTIFICATION OF OPERATING, INVESTING, AND FINANCING ACTIVITIES The following activities took place during the current year. Indicate whether each activity is a cash inflow (+) or cash outflow (), and whether it is an operating activity (O), an investing activity (I), or a financing activity (F). (a) Proceeds from collection of principal amount of loans made to borrowers (b) Cash receipts from the sale of goods (c) Payments for interest on loans (d) Payments of dividends to stockholders (e) Payments to acquire investments in debt securities (f) Dividends received on investments made in the stock of other corporations (g) Repayment of the principal on loans (h) Interest received on loans made to outside entities (i) Salaries paid to employees (j) Payments to acquire property, plant, and equipment and other productive assets (k) Payments to purchase treasury stock (l) Proceeds from the sale of common stock
The comparative balance sheet of Coulson, Inc. at December 31, 20Y2 and 20Y1, is as follows: The noncurrent asset, noncurrent liability, and stockholders equity accounts for 20Y2 are as follows: Instructions Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.
In which section of the statement of cash flows would each of the following transactions be included? For each, identify the appropriate section of the statement of cash flows as operating (O), investing (I), financing (F), or none (N). (Note: some transactions might involve two sections.) A. purchased stock in Xerox Corporation B. purchased office supplies C. issued common stock D. sold plant assets for cash E. sold equipment for cash
The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows: The noncurrent asset, noncurrent liability, and stockholders equity accounts for 20Y2 are as follows: Instructions Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.
Refer to the information for Cornett Company above. What amount should Cornett report on its statement of cash flows as net cash flows provided by investing activities? a. $(5,200) b. $55,200 c. $144,800 d. None of these
Brief 1-28 Statement of Cash Flows Listed are items that would on a Statement of cash flows. Cash received from customers Cash paid for dividends Cash received from a bank loan Cash paid to suppliers Cash paid to purchase Required: Indicate in which part of the statement of cash flows each of the items would appear: operating activities (O), investing activities (I), or financing activities (F).
Classification of Cash Flows Patel Company reported the following items in its statement of cash flows presented using the indirect method. a. Issuance of common stock b. Cash paid for interest c. Sold equipment for cash d. Receipt of cash dividend on investment e. Repayment of principal on long-term debt f. Loss on disposal of equipment. Required: Indicate whether each item should be classified as a cash flow from operating activities, a cash flow from investing activities, a cash flow from financing activities. Use the following information for Cornerstone Exercises 11-16 and 11-17: A review of the balance sheet of Peterson Inc. revealed the following changes in the account balances: a. Increase in long-term investment b Increase in accounts receivable c. Increase in common stock d. Increase in long-term debt e. Decrease in accounts payable f. Decrease in supplies inventory g. Increase in prepaid insurance h. Decrease in retained earnings
In which section of the statement of cash flows would each of the following transactions be included? For each, identify the appropriate section of the statement of cash flows as operating (O), investing (I), financing (F), or none (N). (Note: some transactions might involve two sections.) A. paid advertising expense B. paid dividends to shareholders C. purchased business equipment D. sold merchandise to customers E. purchased plant assets
Analyzing Changes in Balance Sheet Accounts Refer to the information for Peterson Inc. above. Required: Indicate whether each of the changes above produces a cash increase, a cash decrease, or is a noncash activity.