Question

The trial balance of Pacilio Security Services Inc. as of January 1, 2017, had the following normal balances:

Answer 1

a. In the books of Pacilio Security Services Inc.

Transaction	Account Titles	Debit	Credit
		$	$
1.	Salaries Payable	1,400
	Cash		1,400
2.	Prepaid Rent ( Van )	4,800
	Cash		4,800
3.	Prepaid Rent ( Office )	8,400
	Cash		8,400
4.	Supplies	550
	Accounts Payable		550
5.	Merchandise Inventory ( 105 @ $ 285 )	29,925
	Cash		29,925
6.	No entry required	0	0
7.	Allowance for Doubtful Accounts	1,900
	Accounts Receivable		1,900
8.a.	Accounts Receivable	63,800
	Sales Revenue		63,800
8.b.	Cost of Goods Sold ( 23 @ 280 + 87 @ 285 )	31,235
	Merchandise Inventory		31,235
9.	Accounts Payable	800
	Cash		800
10.	Accounts Receivable: Cr. card	23,040
	Credit Card Expense	960
	Accounts Receivable	44,000
	Service Revenue		68,000
11.	Maintenance Expense	50
	Office Supplies Expense	22
	Miscellaneous Expense	9
	Cash Short or Over		2
	Cash		79
12.	Cash	23,040
	Accounts Receivable: Cr. Card.		23,040
13.	Salaries Expense	45,000
	Cash		45,000
14.	Cash	116,800
	Accounts Receivable		116,800
15.	Advertising Expense	9,500
	Cash		9,500
16.	Utilities Expense	5,200
	Cash		5,200
17.	Dividends	20,000
	Cash		20,000
Adjusting Entries
18.	Supplies Expense ( 160 + 550 - 250)	460
	Supplies		460
19.	Rent Expense	12,800
	Prepaid Rent		12,800
20.	Uncollectible Accounts Expense ( 63,800 + 44,000 ) * 3 %	3,234
	Accounts Receivable		3,234
21.	Salaries Expense	2,100
	Salaries Payable		2,100

c.

Pacilio Security Services Inc. Trial Balance December 31, 2017
Account Titles	Debit	Credit
	$	$
Cash	93,708
Petty Cash	100
Accounts Receivable	22,540
Allowance for Uncollectible Accounts		1,334
Merchandise Inventory ( 18 @ $ 285 )	5,130
Supplies	250
Prepaid Rent	3,600
Land	4,000
Accounts Payable		0
Salaries Payable		2,100
Common Stock		50,000
Dividends	20,000
Retained Earnings		74,662
Sales Revenue		63,800
Cost of Goods Sold	31,235
Service Revenue		68,000
Salaries Expense	47,100
Advertising Expense	9,500
Rent Expense	12,800
Credit Card Expense	960
Maintenance Expense	50
Office Supplies Expense	22
Utilities Expense	5,200
Supplies Expense	460
Uncollectible Accounts Expense	3,234
Miscellaneous Expense	9
Cash Short or Over		2
Totals	$ 259,898	$ 259,898