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The following informátion is available for Pacilio Security Services, Inc. for Year 1, its first year of operations. Pacilio provides security services for local sporting events. The following summary transactions occurred during Year 1: 1. Acquired $6,000 from the issue of common stock. 2. Borrowed $5,000 from the Small Business Government Agency. The loan is interest-free. 3. Performed security services at local sporting events during the year for $9,000 cash. 4. Paid salaries expense of $3,000 for the year. 5. Purchased land for $4,000. 6. Paid other operating expenses of $2,000 for the year. 7. Paid a cash dividend to the shareholders of $2.500. 8. The market value of the land was determined to be $4,500 at December 31, Year 1. Required a. Show the effects of the events on the financial statenents using a horizontal statements model given below. In the Cash Flows column, use OA to designate operating activity, IA for investing activity, FA for financing activity, NC for net change in cash and NA to indicate accounts not affected by the event. b. Prepare an income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Year 1. c. Indicate whether the transaction increases (+), decreases (-), or increases and decreases (+/-) for each element of the financial statements. Also, in the Cash Flow column, use the letters OA to designate operating activity, IA for investing activity, FA for financing activity. The first transaction is recorded as an example.

The following informátion is available for Pacilio Security Services, Inc. for Year 1, its first year of operations. Pacilio provides security services for local sporting events. The following summary transactions occurred during Year 1: 1. Acquired $6,000 from the issue of common stock. 2. Borrowed $5,000 from the Small Business Government Agency. The loan is interest-free. 3. Performed security services at local sporting events during the year for $9,000 cash. 4. Paid salaries expense of $3,000 for the year. 5. Purchased land for $4,000. 6. Paid other operating expenses of $2,000 for the year. 7. Paid a cash dividend to the shareholders of $2.500. 8. The market value of the land was determined to be $4,500 at December 31, Year 1. Required a. Show the effects of the events on the financial statenents using a horizontal statements model given below. In the Cash Flows column, use OA to designate operating activity, IA for investing activity, FA for financing activity, NC for net change in cash and NA to indicate accounts not affected by the event. b. Prepare an income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Year 1. c. Indicate whether the transaction increases (+), decreases (-), or increases and decreases (+/-) for each element of the financial statements. Also, in the Cash Flow column, use the letters OA to designate operating activity, IA for investing activity, FA for financing activity. The first transaction is recorded as an example.

Financial Accounting: The Impact on Decision Makers
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter3: Processing Accounting Information
Section: Chapter Questions
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The following informátion is available for Pacilio Security Services, Inc. for Year 1, its first year of operations. Pacilio provides security services for local sporting events. The following summary transactions occurred during Year 1: 1. Acquired $6,000 from the issue of common stock. 2. Borrowed $5,000 from the Small Business Government Agency. The loan is interest-free. 3. Performed security services at local sporting events during the year for $9,000 cash. 4. Paid salaries expense of $3,000 for the year. 5. Purchased land for $4,000. 6. Paid other operating expenses of $2,000 for the year. 7. Paid a cash dividend to the shareholders of $2.500. 8. The market value of the land was determined to be $4,500 at December 31, Year 1. Required a. Show the effects of the events on the financial statenents using a horizontal statements model given below. In the Cash Flows column, use OA to designate operating activity, IA for investing activity, FA for financing activity, NC for net change in cash and NA to indicate accounts not affected by the event. b. Prepare an income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Year 1. c. Indicate whether the transaction increases (+), decreases (-), or increases and decreases (+/-) for each element of the financial statements. Also, in the Cash Flow column, use the letters OA to designate operating activity, IA for investing activity, FA for financing activity. The first transaction is recorded as an example. Complete this question by entering your answers in the tabs below. Required B Stmt of Cash ERequired B Inc Required B Required B Bal Required C Onalysis Stmt
Transcribed Image Text:The following informátion is available for Pacilio Security Services, Inc. for Year 1, its first year of operations. Pacilio provides security services for local sporting events. The following summary transactions occurred during Year 1: 1. Acquired $6,000 from the issue of common stock. 2. Borrowed $5,000 from the Small Business Government Agency. The loan is interest-free. 3. Performed security services at local sporting events during the year for $9,000 cash. 4. Paid salaries expense of $3,000 for the year. 5. Purchased land for $4,000. 6. Paid other operating expenses of $2,000 for the year. 7. Paid a cash dividend to the shareholders of $2.500. 8. The market value of the land was determined to be $4,500 at December 31, Year 1. Required a. Show the effects of the events on the financial statenents using a horizontal statements model given below. In the Cash Flows column, use OA to designate operating activity, IA for investing activity, FA for financing activity, NC for net change in cash and NA to indicate accounts not affected by the event. b. Prepare an income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Year 1. c. Indicate whether the transaction increases (+), decreases (-), or increases and decreases (+/-) for each element of the financial statements. Also, in the Cash Flow column, use the letters OA to designate operating activity, IA for investing activity, FA for financing activity. The first transaction is recorded as an example. Complete this question by entering your answers in the tabs below. Required B Stmt of Cash ERequired B Inc Required B Required B Bal Required C Onalysis Stmt
Complete this question by entering your answers in the tabs below. Required B Inc Required B Stmt Required B Bal Required B Sheet Required C Analysis Required A Stmt of Cash Stmt Stkholders Eq Flows Show the effects of the events on the financial statements using a horizontal statements model given below. In the Cash Flows column, use OA to designate operating act investing activity, FA for financing activity, NC for net change in cash and NA to indicate accounts not affected by the event. (Enter any decreases to account balances and with a minus sign.) Pacillio Security Services Horizontal Statements Model for Year 1 Assets = Liabilities Stockholders' Equity Income Statement Statement of Cash Flows Event + Retained Notes Common +. Earnings Revenues - Expenses = Net Incomne Cash + Land %3D Payable Stock Beg. + 1. + + 2. 3. 4. + = + 5. + %3D 6. 7. + 8. Totals +1 Required A Required B Inc Stmt > Mc ( Prev 21 of 21 Next
Transcribed Image Text:Complete this question by entering your answers in the tabs below. Required B Inc Required B Stmt Required B Bal Required B Sheet Required C Analysis Required A Stmt of Cash Stmt Stkholders Eq Flows Show the effects of the events on the financial statements using a horizontal statements model given below. In the Cash Flows column, use OA to designate operating act investing activity, FA for financing activity, NC for net change in cash and NA to indicate accounts not affected by the event. (Enter any decreases to account balances and with a minus sign.) Pacillio Security Services Horizontal Statements Model for Year 1 Assets = Liabilities Stockholders' Equity Income Statement Statement of Cash Flows Event + Retained Notes Common +. Earnings Revenues - Expenses = Net Incomne Cash + Land %3D Payable Stock Beg. + 1. + + 2. 3. 4. + = + 5. + %3D 6. 7. + 8. Totals +1 Required A Required B Inc Stmt > Mc ( Prev 21 of 21 Next
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