Question

The trial balance of Palicio Security Services Inc. as of January 1, 2016 had following normal balances: Account Adlust Income Statement DR CR Balance Sheet DR CR Trial Balance Adjustments Adjusted Trial Balance DR CRDR CRDR CR 74 210 13,500 200 3,200 4.000 6,620 Cash Accounts Receivable Supplies Prepaid Rent Land Merchandise Inventory (24 @ $265; 1 @ $260) Accounts Payable Unearned revenue Salaries Payable Common Stock Retained Earnings Wages Expense Totals 1.950 980 1.000 50,000 47,800 101,730 101,730

Answer 1

From the information given above I have prepared Journal Entries, Trial Balance, Income Statement of Palicio Security Services Inc

Palicio Security Services Inc Particulars 5 Supplies TO Accounts Payable DrCr 400 Particulars 10 Accounts Receivable To Monitoring Services Revenue MN Dr Cr 52000 52000 3 Joumal Entries 400 5 29000 25000 Particulars 1 Salary Payable To Cash 11 Salary To Cash 6 1000 28000 25000 6 Merchandise Inventory To Cash (100 Alarm systems for $28000) 28000/100=280 per alarm sysytem 7 1000 89300 12 Cash To Accounts Receivable 9 89300 10 2 Petty Cash 100 To Cash On 1, March Petty Cash account was created) 100 57120 11 7 Accounts Receivable To Revenue (Sold 102 alarm systems for $57120) 57120 3600 13 Advertising Expense To Cash 3600 13 14 2500 8 Accounts Payable To Cash 14 Utilities Expense To Cash 15 2500 3 Lease Rent 3200 Prepaid Lease 1600 To Cash 4800 (On 1, May paid 4800 for one year's lease on company van 1, may to 31.dec-4800*8/12= 3200 1,Jan to 30, April - 4800*4/12=1600) 16 17 10000 9a Office Supply Expense To Petty Cash 15 Dividend To Cash 18 10000 19 55 20 21 22 9b Other Expenses To Petty Cash (Cutting Grass $55) 4 Office Rent 4800 Prepaid Rent 2400 To Cash 7200 (On 2, May paid $7200 for one year's office rent 2,may to 31. dec - 7200*3/12=4800 1, Jan to 30. April - 4800*4/12= 2400) 23 9c Miscelleneous Expense To Petty Cash

27 28 Adjustment Entries 29 30 3200 31 Office Rent To Prepaid Rent (Beginning Prepaid Rent Reversed) 3200 32 33 34 35 36 37 Cost of Goods sold 28180 To Merchandise Inventory 28180 ( Company sold 102 alarm systems & Follows FIFO system Cost of Goods sold calculation alarm system 24 No.s @ 265 6360 alarm system 1 No.s @ 260 260 alarm system 77 No.s @ 280 21560 28180 38 39 40 41 42 43

Palicio Security Services Inc Trial Balance Account Trial Balance Dr Cr 74210 92 13500 200 400 3200 4000 6620 Adjustments Adjusted Trial Balance Dr Cr Dr Cr 893008430079210 100 109120 89300 33320 600 8000 8000 2400 3200 2400 4000 28000 28180 6440 28180 28180 2100 400 250 57120 57120 52000 52000 980 25000 25000 1000 3200 3200 1600 1600 Cash Petty Cash Accounts Receivable Supplies Rent Prepaid Rent Land Merchandise Inventory Cost of goods sold Accounts Payable Revenue Monitoring Services Revenue Unearned Revenue Salary Salary Payable Lease Rent Prepaid Lease Office Supply Expense Other Expenses Miscelleneous Expense Advertising Expense 1950 980 1000 23 14 3600 14 3600

W Palicio Security Services Inc Trial Balance Account Adjusted Trial Balance Trial Balance Dr Cr Adjustments Dr Cr Dr Cr 14 14 3600 2500 Miscelleneous Expense Advertising Expense Utilities Expense Dividend Common Stock Retained Earnings Total 3600 2500 10000 10000 50000 50000 47800 47800 101730 101730 314592 314592 208150 208150

Q R S Palicio Security Services Inc Income Statement for the year ended 31 december Particulars Revenue Monitoring Services Revenue Cost of goods sold Amount 57120 52000 28180 80940 25000 8000 3200 3600 Operating Expense Salary Rent Lease Rent Advertising Expense Utilities Expense Office Supply Expense Other Expenses Miscelleneous Expense Net Income from operations 2500 23 55 42392 38548