The trial balance of Pacilio Security Services, Inc. as of January 1, Year 5, had the following normal balances: Cash $62,860 20,500 150 Accounts receivable Supplies Prepaid rent Merchandise inventory (9 @ $240) 2,000 2,160 4,000 980 Land Accounts payable Salaries payable Common stock Retained earnings 1,500 50,000 39,190 During 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 tbe 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 $33,000. 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 monitoring 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.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter15: Statement Of Cash Flows
Section: Chapter Questions
Problem 21E
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Answer full question.
General
General
Income
Requirement
Changes in
SE
Trial Balance
Balance
Statement
Journal
Ledger
Statement
Analysis
Sheet
of CF
Prepare the statement of cash flow for year ended December 31, Year 5. (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 5
Cash flows from operating activities:
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
Transcribed Image Text:General General Income Requirement Changes in SE Trial Balance Balance Statement Journal Ledger Statement Analysis Sheet of CF Prepare the statement of cash flow for year ended December 31, Year 5. (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 5 Cash flows from operating activities: 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
The trial balance of Pacilio Security Services, Inc. as of January 1, Year 5, had the following normal balances:
Cash
Accounts receivable
Supplies
Prepaid rent
Merchandise inventory (9 @ $240)
$62,860
20,500
150
2,000
2,160
4,000
980
aped
Land
Accounts payable
Salaries payable
Common stock
Retained earnings
1,500
50,000
39,190
During 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 $33,000. Sales of $22,000 were on account, while $11,000 were cash sales.
0. 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 monitoring 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.
Transcribed Image Text:The trial balance of Pacilio Security Services, Inc. as of January 1, Year 5, had the following normal balances: Cash Accounts receivable Supplies Prepaid rent Merchandise inventory (9 @ $240) $62,860 20,500 150 2,000 2,160 4,000 980 aped Land Accounts payable Salaries payable Common stock Retained earnings 1,500 50,000 39,190 During 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 $33,000. Sales of $22,000 were on account, while $11,000 were cash sales. 0. 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 monitoring 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.
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