Question

PL CRM AG Best OLD 900 6000 15 1 ViewSonic

Answer 1

1. Worksheet -

Rent Sr. No. Cash + Accounts Receivable + Supplies + + Prepaid Rent + Land = Accounts Payable + Salaries Payable + + Dividend + + evenue Revenue Pacilio Security Services, Inc. Work Sheet Unearned Notes Common + + Revenue Stock $ 5,000 $ 6,000 $ 2,000 $ 3,000 Retained Earnings $ 1,500 Salaries Expense Operating Expense - Advertising Expense Supplies Expense Payable Expense $ 4,000 $ 15,000 $ 21,000 $ 2,400 $ 650 Beg. Bal. $ 8,500 1 $ 2,000 2 $ 3,000 3 $ 6,000 4 $ (2,400) 5 $ (650) 6 $ (8,000) 7 8 $ 600 9 $ 13,500 10 $ (5,800) 11 $ (1,500) 12 $ (1,000) 13 $ 8,000 $ 6,200 $ 6,200 $ 600 $ (13,500) $ (5,800) $ 1,500 $ 1,000 14 $ (585) $ 585 15 $ (1,600) $ 1,600 16 $ (600) $ 600 17 $ 1,200 $ 1,200 $ 14,250 + $ 1,500 + + $ 65 + $ 800 + $ 4,000 $ 400 + $ 1,200 + $ + $ 8,000 + + $ 8,000 + $ 1,500 $1,000 + $ 21,600 $ 9,200 $ 6,200 $ 1,500 $ 585 - $ 1,600 $ 20,615 = $ 20,615

2. Income Statement -

Pacilio Security Services, Inc. Income Statement For the Year Ended December 31, Year 2 Revenue $ 21,600 Expenses: Salaries Expense Operating Expense Advertising Expense Supplies Expense Rent Expense Total Expense $ 9,200 $ 6,200 $ 1,500 $ 585 $ 1,600 $ 19,085 Net Income $ 2,515

3. Changes in Stockholder's Equity -

Pacilio Security Services, Inc. Changes in Stockholder's Equity For the Year Ended December 31, Year 2 Beginning Common Stock $ 6,000 (+) Issued $ 2,000 Ending Common Stock $ 8,000 Beginning Retained Earings (+) Net Income (-) Dividend Ending Retained Earings $ 1,500 $ 2,515 $ (1,000) $ 3,015 Total Stockholders' Equity $ 11,015

4. Balance Sheet -

Pacilio Security Services, Inc. Balance Sheet As of December 31, Year 2 Assets Cash $ 14,250 Accounts Receivable $ 1,500 Supplies $ 65 Prepaid Rent $ 800 Land $ 4,000 Total Assets $ 20,615 Liabilities Accounts Payable Salaries Payable Unearned Revenue Notes Payable $ 400 $ 1,200 $ $ 8,000 Total Liabilities $ 9,600 Stockholder's Equity Common Stock Retained Earnings $ 8,000 $ 3,015 Total Stockholder's Equity $ 11,015 Total Liabilities & Stockholder's Equity $ 20,615

5. Cash Flow -

Pacilio Security Services, Inc. Statement of Cash Flow For the Year Ended December 31, Year 2 Cash Flow From Operating Activities Cash Received from Customer $ 20,100 Cash Paid to Suppliers $ (650) Cash Paid to Employees $ (8,000) Cash Paid to Operating Expense $ (5,800) Cash Paid to Rent Expense $ (2,400) Cash Paid to Advertising Expense $ (1,500) Net Cash Flow From Operating Activities $ 1,750 Cash Flow From Investing Activities Net Cash Flow From Investing Activities Cash Flow From Financing Activities Issue of Common Stock Issue of Notes Payable Dividend Paid $ 2,000 $ 3,000 $ (1,000) Net Cash Flow From Financing Activities $ 4,000 Net Increase in Cash $ 5,750 Beginning Cash Balance Ending Cash Balance $ 8,500 $ 14,250