Question:
The trail balance of Pacilo Security Services Inc. as of January 1, 2016 had the following normal balances
cash 74,210
accounts receivable 13,500
supplies 200
prepaid rent 3,200
merchandise inventory(24@ $265; 1 @$260) 6,620
land 4000
accounts payable 1,950
unearned revenue 900
salaries payable 1,000
common stock 50,000
retained earnings 47,800
During 2016 Pacilio Security Services experienced the following transactions:
1. Paid the salaries payable from 2015.
2. On March 1, 2016, Pacilio established a $100 petty cash fund to handle small expenditures.
3. Paid $4,800 on May 1, 2016, for one year's lease on the company van in advance.
4. Paid $7,200 on May 2,2016 for one year's office rent in advance.
5. Purchased $ 400 of supplies on account.
6. Purchased 100 alarm systems for $28,000 cash during the year.
7. Sold 102 alarm systems for $57,120. All sales were on account. (Compute cost of goods sold using the FIFO cost flow method)
8. Paid $2,100 on accounts payable during the year.
9. Replenished the petty cash fund on august 1. At this time, the petty cash fund had only $7 of currency left. It contained the following receipts:office supplies expense$23, cutting grass $55, and miscellaneous $14.
10. Billed $52,000 of monitoring services for the year.
11. Paid installers and other employees a total of $25,000 cash for salaries.
12. Collected $89,300 of accounts receivable during the year.
13. Paid $3,600 of advertising expense during the year.
14. Paid $2,500 of utilities expense for the year.
15. Paid a dividend of $10,000 to the shareholders.