Problem

The trial balance of Pacilio Security Services Inc. as of January 1, 2013 had the followin...

The trial balance of Pacilio Security Services Inc. as of January 1, 2013 had the following normal balances:

Cash

$8,900

Accounts Receivable

1,500

Supplies

65

Prepaid Rent

800

Land

4,000

Accounts Payable

1,050

Unearned Revenue

200

Salaries Payable

1,200

Notes Payable

2,000

Common Stock

8,000

Retained Earnings

2,815

During 2013, Pacilio Security Service experienced the following transaction:

1. Paid the salaries payable from 2012.

2. paid the balance of $2,000 on the debt owed to the Small Business Government Agency. The loan is interest free.

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