Question

Just need help with Statement of Cash Flows and Effect of Transactions on Financial Statements as shown in photos 3/4.

1 Homework Help Save & Exit Check my The trial balance of Pacillo Security Services, Inc. as of January 1, Year 4, had the following normal balances: Cash Accounts Receivable Supplies Prepaid Rent Land Unearned Revenue Salaries Payable Common Stock Retained Earnings $12,500 3,580 120 1,000 4,806 900 1,880 8,000 11,220 In Year 4, Pacilio Security Services decided to expand its business to sell security systems and offer 24-hour alarm monitoring services. It plans to phase out its current service of providing security personnel at various events. The following summary transactions occurred during Year 4 1. Paid the salaries payable from Year 3 2. Acquired an additional $42,000 cash from the issue of common stock 3. Rented a larger building on May 1; paid $6,000 for 12 months' rent in advance. 4. Paid $800 cash for supplies to be used over the next several months by the business 5. Purchased alarm systems for resale at a cost of $12,000. The alarm systems were purchased on account with the terms 2/10, n/30 6. Returned alarm systems that had a cost of $240 7. Installed alarm systems during the year for a total sales amount of $20,000 Sales of $15,000 were on account, while $5,000 were Prev1 of 1 Next to search Help Save & Ex Che 3. Rented a larger building on May 1, paid $6,000 for 12 months' rent in advance 4. Paid $800 cash for supplies to be used over the next several months by the business. 5 Purchased alarm systemsfor resale ata costors 12,000. The alarm systems were purchased on account with the terms 2 no, n30. 6. Returned alarm systems that had a cost of $240 7. Installed alarm systems during the year for a total sales amount of $20,000. Sales of $15,000 were on account, while $5,000 were cash sales 8. The cost of the systems sold in Event 7 amounted to $9,440 9. Paid the installers and other employees a total of $9,500 in salaries 0. Sold $36,000 of monitorin 11. Paid cash on accounts payable. g services for the year. The services are billed to the customers each month The payment was made before the discount period expired. At the time of purchase, the inventory was m has a cost of $8,000 and was purchased under the terms 2/10, n/30 12 Paid cash to settle additional accounts payable in the amount of $2,780. The payment was made after the discount period expired 13. Collected $43,000 of accounts receivable during the year 4. Performed $12,000 of security services for area events; $9,000 was on account and $3,000 was for cash I5. Paid advertising cost of $1,620 for the year 16. Paid $1,100 for utilities expense for the year. 17. Paid a dividend of $12,000 to the shareholders. Adjustment Information 8. Supplies of $150 were on hand at the end of the year. 9. Recognized the expired rent for the year 0. Recognized the balance of the unearned revenue; cash was received in Year 3. 21. Accrued salaries at December 31, Year 4, were $1,500. Prev ~ 1 of 1 Next arch For the Year Ended December 31, Year 4 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 o search https//newconnect.mheducation.com/flow/connect.html work Effect of Transactions on Financial Statements- Year 4 Balance Sheet Income Statement Statement of Cash Transaction | Assets |-| Liabilities |+5. Equity: Revenuel-Expenses Flows OA 10 12. 14 15 17 1 of 1

Answer 1

Balance Sheet Liabilites Income Statement SI. No. Transactions Statement of Cash Flows Assests Revenue Ex Net Income 1000 1000 OA 42000 FA -6000 OA 1 Paid Salary from year 3 2 Issue of Common Stock Rent paid a larger building Out of 6000, 5500 will go to income statement and Rest will be debited Prepaid Rent. 5,500 1,000 Rent of this year from above 500 5500 19 Prepaid Rent of Last year from Trial Balance 1000 1000 Paid for supplies 800 OA Opening 120+purchase 800 closing 150 770 18 770 770 Consumtion of Supplier after stock adjustment Purchased Alarm System Return of alarm system has been reduced from purchases Cash Sale increase Cash flows and credit sale increase debtors Return Alarm System 240 20,000 5000 OA Sale of alarm System Consumption of Alarm system Inventory of Alarm System Salary Paid of Installers Salary Payable at end Sale of Monitoring Services 2320 Purchase Return-consumption 9500 9,500 1,500 36,000 9500 OA 21 1500 1500 10 2% of account payable is discount hence, added in expenses 160 160 7840 OA 2780 OA 43000 OA 3000 OA 1620 OA 1100 OA 12000 FA Payment for Account Payable 12 Payment for Account Payable 13 Collection of Account Receivable 14 Perform Security Services 15 Advertisement Cost 16 Utilities Expenses 17 Dividend to Shareholders 20 Unearned Revenue -43000 12,000 1,620 1,100 12,000 900 35750 1620 1100 900 900 TOTAL 18850 50360 Note Negative sign means the relevant head will get reduced and Positive sign means the relevant head will get increased.

Cash Flows for the vear 4 Cash Flows from Operating Activities Collection of Account receivables Cash Sale and Services Payment of account Payables Salaries paid Rent Paid Paid for Supplies Utilities and Advertisement paid Net Cash Flow from Operating Activities (A) Cash Flows from Investing Activities 43,000 8,000 10,620 10,500 6,000 800 2,720 20,360 Nil Net Cash Flow from Investing Activities (B) Cash Flows from Financing Activities Issue of Common Stock Dividend to Shareholders NIL 42,000 12,000 Net Cash Flow from Financing Activities (C) 30,000 Net Cash Flows for the year D Opening Cash Balance (E) Closing Cash Balance (D+E) (A+B+C) 50,360 12,500 62,860