Cash $93,708 Petty Cash $100 Account Receivable $22,540 Allowance for doubtful accounts $1,334 Supplies $250 Prepaid rent $3,600 Merchandise Inventory (18 @ $285) $5,130 Land $4,000 Salaries payable $2,100 Common stock $50,000 Retained earnings $75,894 ------------------------------------------------------------------------------------ During 2018 Pacillo Security Services experienced the following transaction: 1. Paid the salaries payable from 2017. 2. Purchased equipment and a van for a lump sum of $ 36,000 cash on January 2, 2018. The equipment was appraised for $10,000 and the van was appraised for $30,000. 3. Paid $9,000 on May 1, 2018 for one year's Office rent in advance. 4.Purchased $300 of supplies on account. 5.Purchased 120 alarm systems at a cost of $280 each. Paid cash for the purchase. 6.After numerous attempts to collect from customers, wrote off $2,350 of uncollectible accounts receivable. 7.Sold 115 alarm systems for $580 each. All sales were on accounts. (Be sure to compute cost of goods sold using the FIFO cost flow method.) 8.Billed $86,000 of monitoring services for the year. Credit card sales amounted to $36,000, and the credit card company charged a 4 percent fee. The remaining $50,000 were sales on account. 9.Replenished the petty cash fund on June 30. The fund had $12 cash and receipts of $45 for yard mowing, $28 for office supplies expense , and $11 for miscellaneous exepenses. 10.Collected the amount due from the credit card company. 11. Paid installers and other employees a total of $52,000 cash for salaries. 12. Collected $115,500 of accounts receivable during the year. 13.Paid $12,500 of advertising expense during the year. 14.Paid $6,800 of utilities expense for the year. 15. Sold the land, which was purchased in 2011, for $12,000. 16. Paid the accounts payable. 17.Paid a dividend of $10,000 to the shareholders. ADJUSTMENTS 18.Determined that $180 of supplies were on hand at the end of the year. 19.Recognized the expired rent for both the old van and the office building for the year.The lease on the van was not renewed.Rent paid on March 1, 2017, for the van was $4,800. 20.Recognized uncollectible accounts expense fo the year using the allowance method. Pacilio estimates that 3 percent of sales on account will not be collected. 21.Recognized depreciation expense on the equipment and the van. The equipment has a five year life and a $2,000 salvage value. The van has a four-year life and a $6,000 salvage value.The company uses double-declining-balance for the van and straight-line for the equipment. 22.Accrued salaries at December 31,3018, were $1,500. ------------------------------------------------------------------------------------ Here is everything in general journal form: 1 Salaries payable $2,100 cash $2,100 2 Equipment $30,000 Van $10,000 Cash $36,000 Profit on purchase of assets $4,000 3 prepaid rent $9,000 cash $9,000 4 supplies $300 cash $300 5 alaram systems $33,600 cash $33,600 6 Bad debts expenses $2,350 Accounts receivable $2,350 7 Accounts receivables $66,700 Alarm systems sales $66,700 8 Accounts receivables against credit card $36,000 Accouts receivable $50,000 Service revenue $86,000 9 Cash $36,000 Accounts receivables $36,000 10 Salaries expenses $52,000 cash $52,000 11 cash $115,500 Accounts receivables $115,500 12 Advertising expenses $12,500 cash $12,500 13 utilities expenses $6,800 cash $6,800 14 cash $12,000 Land $12,000 17 dividends $10,000 cash $1,000 18 Supplies expenses $370 supplies $370 19 Rent expenses $4,800 cash $4,800 20 Allowances for doubtful debts $2,000 Accounts receivables $2,000 21 Depreciation expenses $10,600 Accumulated deprecition-van $5,000 Accumulated dep-equipment $5,600 22 Salaries expenses $1,500 salaries payable $1,500