Cash Petty cash Accounts receivable Allowance for doubtful accounts Supplies Prepaid rent Merchandise Inventory (23 @ $200) Equipment Van Accumulated depreciation Salaries payable Common stock Retained earnings 393, 380 100 21,390 2,485 180 3,000 6,440 9,000 27,000 14,900 1,500 50,000 91,605 During Year 9. Pacilio Security Services experienced the following transactions: 1. Paid the salaries payable from Year 8. 2. Paid $9,000 on May 2. Year 9. for one year's office rent in advance 3. Purchased $425 of supplies on account 4. Purchased 145 alarm systems at a cost of $290 each Paid cash for the purchase. 5. After numerous attempts to collect from customers, wrote off $2,060 of uncollectible accounts receivable 6. Sold 130 alarm systems for $580 each plus sales tax of 5 percent. All sales were on account. (Be sure to compute cost of goods sold using the FIFO cost flow method) 7 Record the cost of goods sold related to the sale from Event 6 using the FIFO method 8. Billed $107.000 of monitoring services for the year. Credit card sales amounted to $42,000, and the credit card company charged a 4 percent fee. The remaining $65.000 were sales on account Sales tax is not charged on this service 9 Replenished the petty cash fund on June 30 The fund had $5 cash and has receipts of $60 for yard mowing. 515 for office supplies expense, and 517 for miscellaneous expenses 10 Collected the amount due from the credit card company 11. Paid the sales tax collected on $69,600 of the alarm sales 12. Paid installers and other employees a total of $65.000 for salaries for the year. Assume the Social Security tax rate is 6 percent and the Medicare tax rate is 15 percent. Federal income taxes withheld amounted to $7500. Cash was paid for the net amount of salaries due 13. Pacillo now offers a one-year wartanty on its alarm systems. Paid $1.950 in warranty repairs during the year 14. on September 1, borrowed 512,000 from State Bank. The note had an 8 percent interest rate and a one-year term to maturity 15 Collected $136100 of accounts receivable during the year 16. Pald $15.000 of advertising expense during the year 17 Paid $7,200 of utilities expense for the year 18. Paid $7,000 of the Federal Income Tax Payable, $3,600 of the FICA Tax - Soc Sec Tax Payable and $900 of the FICA Tax - Medicare Tax Payable. Also, paid the Payroll Tax Expense for the 75% employer matching of FICA taxes on $60,000 of salaries. 19. Paid the accounts payable 20. Paid a dividend of S10,000 to the shareholders. Adjustments Adjustments 20. There was $165 of supplies on hand at the end of the year. 21. Recognized the expired rent for the office building for the year 22. Recognized uncollectible accounts expense for the year using the allowance method. The company revised its estimate of uncollectible accounts based on prior years' experience This year, Pacillo estimates that 275 percent of sales on account will not be collected 23. 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 (A full year's depreciation was taken in Year 8 the year of acquisition) 24. The alarm systems sold in transaction 6 were covered with a one year warranty Pacilio estimated that the warranty cost would be 3 percent of alarm sales 25 Recognized the accrued interest on the note payable at December 31 Year 9 26. The unemployment tax on salaries has not been paid Recorded the accrued unemployment tax on the salaries for the year. The unemployment tax rate is 45 percent ($14,000 of salaries is subject to this tax.) 27 Recognized the employer Social Security and Medicare payroll tax that has not been paid on $5,000 of satarles expense Adjusted Pacilio Security Services, Inc. Income Statement For the Year Ended December 31, Year 9 Revenues Total Revenues Cost of goods sold (37.470) 37.470) Expenses Total Operating Expenses Net Operating Income Non-Operating Items 37470) Requirement General Journal General Ledger Trial Balance Income Statement Changes in SE Balance Sheet Statement of CF Analysis Prepare the statement of changes in stockholders' equity for the year ended December 31, Year 9. You will need to determine and enter the accounts and balances to prepare the Statement of changes in Stockholders' Equity. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection Adjusted Pacilio Security Services, Inc. Statement of Changes in Stockholders'Equity For the Year Ended December 31. Year 9 Beginning Common Stock Add. Common stock issued Ending Common Stock Beginning Retained Earnings (10,000) Ending Rotained Earnings Total Stockholders Equity 81,605 81,605 $ net of Transactions on Financial Statements Year 9 Balance Sheet Income Statement Net Liabilities - S. Equity Revenue Expenses Income Transaction Assets Statement of Cash Flows 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 20