Question

The following transactions took place during 2016 for Palicio Security Service 1. Paid the salaries payable from 2015. 2. On March 1, 2016, Palicio established a $100 petty cash fund to handles expenditures. 3. Paid $4,800 on May 1, 2016, for one year's lease on the company van in advance. 4. Paid $7,200 on May 2, 2016 for one year's office rent in advance. 5. Purchased $400 of supplies on account. 6. Purchased 100 alarm systems for $28,000 cash during the year. 7. Sold 102 alarm systems for $57,120. All sales were on account. (Compute cost of goods sold using the FIFO cost flow method) 8. Paid $2,100 on accounts payable during the year. 9. Replenished the petty cash fund on August 1. At this time, the petty cash had only $7 of currency left. It contained the following receipts: office supply expense $23, cutting grass $55, and miscellaneous $14. 10. Billed $52,000 of monitoring services for the year. 11. Paid installers and other employees a total of $25,000 cash for salaries 12. Collected $89,300 of accounts receivable during the year. 13. Paid $3,600 of advertising expense during the year. 14. Paid $2,500 of utilities expense for the year. 15. Paid a dividend of $10,000 to the shareholders. HINTS: First record the Journal entries for each transaction listed above and then record the transactions on the Trial Balance worksheet. ALSO, set up an Excel Spreadsheet like the Trial Balance sheet shown on next page and use to record adjusting entries. INSTRUCTIONS: A Prepare and record the Adjusting Journal Entries B. Complete the trial balance worksheet LISTED on the PRIOR page for the month ended December 31, 200x for Palicio Security Service Company based on the transactions RECORDED IN THE JOURNAL ENTRIES LISTED ABOVE: c. Prepare the trial balance as at Dec 31, 2016 for Palicio Security Services D. Prepare the income statement for Palicio Security Services as of Dec 31, 2016 E. Prepare statement of changes in equity for Palicio Security Services as of Dec 31, 2016 E Prepare the balance sheet for Palicio Security Services Inc. as of Dec 31, 2016

Answer 1

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View Cut Copy ♡ General 1 - Wrap Text Merge & Center 1 - 3 LE Paste Format Painter Clipboard Autosum * Arial 11 - AA BI U DA Font Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format Fill 2 Clear Sort & Find & Filter Select Editing Alignment E Number Cells J9 - C D E F Credit Debit $ 1,000.00 Palicio Security Services Inc. Journal Entries General, Journal Salaries Payable Cash (Being amount of Salaries Payable paid) Petty Cash Cash $ 1,000.00 2) $ 100.00 7 8 $ 100.00 9 $ 4,800.00 103) 11 $ 4,800.00 12 134) 14 $ 7,200.00 (Being amount of Palicio established Petty Cash) Prepaid Rent-Van Cash (Being amount of one year lease on Company Van) Prepaid Rent-Office Cash (Being amountpaid for one year rent in advance Supplies Accounts Payable (Being amount of Supplies purchased on account) Merchandise Inventory $ 7,200.00 15 16 5) 17 $ 400.00 $ 400.00 18 19 6) $ 28,000.00 Sheet1 Sheet2 Sheet3 Ready + BOJ 100% - 19:01 - ENG 10-02-2020 gol

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View Cut Copy Arial ♡ General 1 1 - Wrap Text Merge & Center - 3 @ 01 : Autosum * LE Paste Format Painter Clipboard 11 - AA ->-A BI U - Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format Fill 2 Clear Sort & Find & Filter Select Editing Font Alignment Number Cells 9 - A D C $ 28,000.00 $ 28,000.00 19 6) 20 21 22 70) 23 $ 57,120.00 $ 57,120.00 $ 28,180.00 25 7() 26 $ 28,180.00 27 Merchandise Inventory Cash (Purchased 100 Alarm for cash) Accounts Receivable Alarm Sales (Being amount of 102 Alarm Sales) Cost of goods sold(24 alarm @$265+1 Alarm @260+77 Alarm @$280) Merchandise Inventory (Being amount of Cost of goods sold) Accounts Payable Cash (Being amount paid for Accounts Payable) Office supplies Expense Maintenance Expense Miscellaneous Expense Advertising Expense Cash short over Cash (Being amount of Expenses paid) Accounts Receivable 28 8) $ 2,100.00 29 $ 2,100.00 30 31 9) $ $ 33 23.00 55.00 14.00 1,800.00 1.00 $ $ 1,893.00 36 37 38 10) $ 52,000.00 Sheet1 Sheet2 Sheet3 Ready + BOJ 100% 0 - 19:01 - ENG 10-02-2020 gol

Book1 - Microsoft Excel - X © Home Insert Page Layout Formulas Data Review View Cut Copy Arial General 1 1 - 3 Autosum * LE Paste Format Painter Clipboard 11 - AA ->-A ♡ - Wrap Text Merge & Center Alignment BI U - 9 8... Insert Delete Format ་ % Number Conditional Format Formatting as Table Styles Cell Styles Fill 2 Clear Sort & Find & Filter Select Editing Font Cells 19 37 38 10) $ 52,000.00 $ 52,000.00 41 11) $ 25,000.00 $ 25,000.00 $ 89,300.00 43 44 12) 45 46 47 13) $ 89,300.00 (Being amount of Expenses paid) Accounts Receivable Monitoring Service Revenue (Being amount of Monitoring service revenue) Salaries Expense To Cash (Being amount paid for Installer and other employees) Cash To Accounts Receivable (Being amount of Cash collected) Advertising Expense To Cash (Being amount paid for Advertisement Expense) Utilities Expense To Cash (Paid Utilities Expense) Dividends To Cash (Being amount paid to Shareholder's) $ 3,600.00 48 $ 3,600.00 $ 2,500.00 51 $ 2,500.00 52 53 15) $ 10,000.00 $ 10,000.00 55 Palicio Security Services Inc. 56 57 Ke Ready Sheet1 Sheet2 Sheet30 BOJ 100% + 0 19:01 10-02-2020 OP ANDENG .

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View Cut Copy ♡ General Arial 11 - AA BI U DA Font - Wrap Text Merge & Center Paste 1 1 ormatting" af Table - stortes Autosum * 2 clear printere selecom - 3 insert Delete Format Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format Format Painter Clipboard Fill 2 Clear Sort & Find & Filter Select Editing Alignment Number Cells J9 A 57 58 59 60 Account Name 61 Cash 62 Petty Cash 63 Accounts Receivable 64 Supplies 65 Prepaid Rent 66 Land 67 Merchandise Inventory 68 Accounts Payable 69 Unearned Revenue 70 Salaries Payable 71 Common Stock 72 Retained Earnings 73 Dividends 74 Monitoring Service Revenue 75 Alarm Sales 76 Cost of goods sold 77 Office supplies Expense 78 Maintenance Expense 79 Miscellaneous Expense I Sheet1 Sheet2 Sheet3 Ready Palicio Security Services Inc. Worksheet-December 31st, 2016 Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet Debit Credit Debit Credit Debit Credit Debit Credit $ 74,210.00 $ 3,107.00 $ 77,317.00 $ 77,317.00 $ 100.00 $ 100.00 $ 100.00 $ 13,500.00 $ 19,820.00 $ 33,320.00 $ 33,320.00 200.00 $ 400.00 $ 600.00 $ 600.00 3,200.00 $ 12,000.00 $ 15,200.00 $ 15,200.00 $ 4,000.00 $ 4,000.00 $ 4,000.00 $ 6,620.00 $ 180,00 $ 6,440.00 $ 6,440.00 $ 1,950.00 $ 1,700.00 $ 250.00 $ 980.00 $ 980.00 $ 1,000.00 $ 1,000.00 - $ 50,000.00 $ 50,000.00 $ 47,800.00 $ 47,800.00 10,000.00 $ 10,000.00 $ 10,000.00 $ 52,000.00 $ 52,000.00 $ 52,000.00 $ 57,120.00 $ 57,120.00 $ 57,120.00 28,180.00 $ 28,180.00 28,180.00 $ 23.00 $ 23.00 23.00 $ 55.00 55.00 14.00 $ 14.00 14.00 $ 250.00 $ 980.00 $ $ 50,000.00 $ 47,800.00 $ 55.00 H I OU 100% ^ ENG U 19:02 gl 10-02-2020

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View Cut Copy ♡ General - Wrap Text Merge & Center 1 1 - 3 Autosum * Arial 11 - AA BI U DA Font Paste Insert Delete Format Conditional Format Formatting as Table Styles Cell Styles Format Painter Clipboard Fill 2 Clear Sort & Find & Filter Select Editing Alignment Number Cells C D G $ B 4,000.00 6,620.00 E $ 180,00 $ F 4,000.00 6,440.00 $ 1,700.00 $ $ 250.00 980.00 1,000.00 $ 1,950.00 $ $ 980.00 $ 1,000.00 $ $ 50,000.00 $ 47,800.00 $ $ 50,000.00 $ 47,800.00 $ 10,000.00 $ 52,000.00 $ 57,120.00 $ 9 А 66 Land 67 Merchandise Inventory 68 Accounts Payable 69 Unearned Revenue 70 Salaries Payable 71 Common Stock 72 Retained Earnings 73 Dividends 74 Monitoring Service Revenue 75 Alarm Sales 76 Cost of goods sold 77 Office supplies Expense 78 Maintenance Expense 79 Miscellaneous Expense 80 Advertising Expense 81 Cash short over 82 Salaries Expense 83 Advertising Expense 84 Utilities Expense 85 Total 86 Net Income 87 Total 88 Sheet1 Sheet2 Sheet3 Ready 10,000.00 $ 52,000.00 $ 57,120.00 28,180.00 23.00 55.00 14.00 1,800.00 1.00 25,000.00 3,600.00 2,500.00 1,09,300.00 $ 1,09,300.00 H I $ 4,000.00 $ 6,440.00 $ 250.00 $ 980.00 $ $ 50,000.00 $ 47,800.00 $ 10,000.00 $ 52,000.00 $ 57,120.00 28,180.00 23.00 55.00 14.00 $ 1,800.00 $ 1.00 $ 25,000.00 $ 3,600.00 $ 2,500.00 $ 61,173.00 $ 1,09,120.00 $ 1,46,977.00 $ 99,030.00 $ 47,947.00 $ 47,947.00 $ 1,09,120.00 $ 1,09,120.00 $1,46,977.00 $ 1,46,977.00 $ 28,180.00 $ 23.00 55.00 $ 14.00 $ 1,800.00 1.00 $ 25,000.00 $ 3,600.00 $ 2,500.00 $2,08,150.00 $ $ $ $ $ 1,01,730.00 $1,01,730.00 $ $ 2,08,150.00 + OU 100% ve OP ANDENG 0 19:02 10-02-2020 -

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View Cut Copy Arial ♡ General 1 - Wrap Text Merge & Center 1 - 3 LE Paste Format Painter Clipboard Autosum * 11 - AA ->-A BI U - - % 8.09 Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format Fill 2 Clear Sort & Find & Filter Select Editing Font Alignment Number Cells D E F G H I 9 A 89 90 91 Account Title 92 Cash 93 Petty Cash 94 Accounts Receivable 95 Supplies 96 Prepaid Rent 97 Land 98 Merchandise Inventory 99 Accounts Payable 100 Unearned Revenue 101 Salaries Payable 102 Common Stock 103 Retained Earnings 104 Dividends 105 Monitoring Service Revenue 106 Alarm Sales 107 Cost of goods sold 108 Office supplies Expense 109 Maintenance Expense 110 Miscellaneous Expense 111 Advertising Expense 112 Cash short over in sheeti Sheet2 Sheet3 Ready B C Trial Balance December 31st, 2016 Debit Credit $ 77,317.00 $ 100.00 $ 33,320.00 $ 600.00 $ 15,200.00 $ 4,000.00 $ 6,440.00 250.00 $ 980.00 $ $ 50,000.00 $ 47,800.00 $ 10,000.00 $ 52,000.00 $ 57,120.00 $ 28,180.00 23.00 55.00 14.00 $ 1,800.00 1.00 T OU 100% 0 + 19:02D D ENG 10-02-2020 W

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View Cut Copy ♡ General - Wrap Text Merge & Center 1 - } Autosum Arial 11 - AA BI U DA Font Paste Insert Delete Format Conditional Format Formatting as Table Styles Cell Styles Format Painter Clipboard Fill 2 Clear Sort & Filter Editing Find & Select Alignment Number Cells C D E F G H $ $ $ $ B 600.00 15,200.00 4.000.00 6,440.00 $ $ 250.00 980.00 $ 50,000.00 $ 47,800.00 $ 10,000.00 19 А 95 Supplies 96 Prepaid Rent 97 Land 98 Merchandise Inventory 99 Accounts Payable 100 Unearned Revenue 101 Salaries Payable 102 Common Stock 103 Retained Earnings 104 Dividends 105 Monitoring Service Revenue 106 Alarm Sales 107 Cost of goods sold 108 Office supplies Expense 109 Maintenance Expense 110 Miscellaneous Expense 111 Advertising Expense 112 Cash short over 113 Salaries Expense 114 Advertising Expense 115 Utilities Expense 116 Total 117 $ 52,000.00 $ 57,120.00 A A A A A 28,180.00 23.00 55.00 14.00 1,800.00 1.00 25,000.00 3,600.00 2,500.00 2,08,150.00 A A A $ $ $ $ $2,08,150.00 118 H4> Ready Sheet1 Sheet2 Sheet3 . BOJ 100% + 0 19:02 10-02-2020 OP ANDENG

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View Cut Copy = = = General *Wrap Text Merge & Center 1 1 - 3 Arial - 11 - AA BI U DA Autosum * Paste Insert Delete Format Conditional Format Formatting as Table Styles Cell Styles Format Painter Clipboard Fill 2 Clear Sort & Filter Editing Find & Select Font Alignment Number Cells F G H 120 J9 A в с D E 119 Palicio Security Services Inc. Income Statement 121 Income 122 Monitoring Service Revenue $ 52,000.00 123 Alarm Sales $ 57,120.00 124 Total Revenue $1,09,120.00 125 Expenses 126 Cost of goods sold $ 28,180.00 127 Office supplies Expense 23.00 128 Maintenance Expense $ 55.00 129 Miscellaneous Expense 14.00 130 Advertising Expense $ 1,800.00 131 Cash short over 1.00 132 Salaries Expense $ 25,000.00 133 Advertising Expense $ 3,600.00 134 Utilities Expense $ 2,500.00 135 Total Expenses $ 61,173.00 136 Net Income $ 47,947.00 137 138 Palicio Security Services Inc. 139 Statement of Stockholder's Equity | Retained Common Stock Earnings H i Sheet1 Sheet2 Sheet3 Ready 140 Total OO 100% @ U MA 19:02 E NG 10-02-2020 W O

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View Cut Copy Arial ♡ General 1 - Wrap Text Merge & Center 1 - 3 LE Paste Format Painter Clipboard Autosum * 11 - AA ->-A BI U - - % 8.09 Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format Fill 2 Clear Sort & Filter Editing Find & Select Font Alignment Number Cells F G H I 137 138 139 Palicio Security Services Inc. Statement of Stockholder's Equity Retained Common Stock Earnings Total $ 50,000.00 $ 47,800.00 $ 97,800.00 $ 47,947.00 $ 47,947.00 $ -10,000.00 $ 50,000.00 $ 85,747.00 $1,35,747.00 Palicio Security Services Inc. Balance Sheet 140 141 Beginning 142 Net Income 143 Less: Dividend Paid 144 Balance 145 146 147 148 149 Assets 150 Cash 151 Petty Cash 152 Accounts Receivable 153 Supplies 154 Prepaid Rent 155 Land 156 Merchandise Inventory 157 158 Total Assets 159 Liabilities Sheet1 Sheet2 Ready $ $ $ $ $ $ $ 77,317.00 100.00 33,320.00 600.00 15,200.00 4,000.00 6,440.00 $ 1,36,977.00 Sheet3 I + OU 100% - OP ANDENG 0 19:02 10-02-2020 0

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View Cut Copy Arial ♡ General 1 - Wrap Text Merge & Center - } LE Paste Format Painter Clipboard Autosum 11 - AA ->-A BI U - - % 8.09 Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format Fill 2 Clear Sort & Find & Filter Select Editing Font Alignment Number Cells C G H D E F $ 47,947.00 $ 47,947.00 $ -10,000.00 50,000.00 $ 85,747.00 $1,35,747.00 $ 142 Net Income 143 Less: Dividend Paid 144 Balance 145 146 147 Palicio Security Services Inc. 148 Balance Sheet 149 Assets 150 Cash 151 Petty Cash 152 Accounts Receivable 153 Supplies 154 Prepaid Rent 155 Land 156 Merchandise Inventory 157 158 Total Assets 159 Liabilities 160 Accounts Payable 161 Unearned Revenue 162 Stockholder's equity 163 Common Stock 164 Retained Earnings 165 Total Liabilities and stockholder's equity 141 Sheet1 Sheet2 Sheet3 Ready $ $ $ $ $ $ $ 77,317.00 100.00 33,320.00 600.00 15,200.00 4,000.00 6,440.00 $ 1,36,977.00 $ $ 250.00 980.00 $ $ $ 50,000.00 85,747.00 1,36,977.00 166 I + BOJ 100% - OP ANDENG 0 19:02 10-02-2020 0