trail balance 457661

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.