During Year 10. Pacto Security Services experienced the following transactions 1. Paid the sales tax payable from Year 9. 2. Paid the balance of the payroll liabilities due for Year 9 (federal income tax, FICA taxes, and unemployment taxes) 3. On January 1, Year 10. purchased land and a building for $150,000. The building was appraised at $125.000 and the land at 525.000. Pacilio paid $50.000 cash and financed the balance. The balance was financed with a 10 year installment note. The note had an interest rate of 7 percent and annual payments of $14.238 due on the last day of the year 4. On January 1, Year 10, issued $50,000 of 6 percent five year bonds. The bonds were issued at 98. 5. Purchase $660 of supplies on account. 6 Purchased 170 alarm systems at a cost of $300 Cash was paid for the purchase 7. After numerous attempts to collect from customers, wrote off $2.450 of uncollectible accounts receivable. 8. Sold 160 alarm systems for $580 each plus sales tax of 5 percent. All sales were on account 9. Record the cost of goods sold related to the sale from Event 8 using the FIFO method 10. Billed $120.000 of monitoring services for the year. Credit card sales amounted to $36.000, and the credit card comperty charged a 4 percent fee The remaining S84000 were sales on account Sales tax is not charged on this service 11. Replenished the petty cash fund on June 30. The fund had 511 cash and receipts of $65 for yard mowing and $24 for office supplies expense. 12 Collected the amount due from the credit card company 13. Paid the sales tax collected on $85,000 of the alarm sales. 14. Collected $167.000 of accounts receivable during the year 15. Paid Installers and other employees a total of $82,000 for salaries for the year. Assume the Social Security tax rate is 6 percent and the Medicare taxeles 15 percent Federal income taxes withheld amounted to $9,500. The net amount of salaries was paid in cash 16. Paid $1.250 in warranty repairs during the year. 17. On September 1. paid the note and interest owed to State Bank 18. Pald $18.000 of advertising expense during the year. 19. Paid $5.600 of utilities expense for the year. 20 Paid $8.600 of the Employee Income Tax Payable $4.500 of the FICA Tax - Soc Sec Tax Payable and $1125 of the FICA Tax - Medicare Tax Payable. Also paid the Payroll Tax Expense for the 7.5% employer matching of FICA taxes on $75,000 of salaries. 21. Paid the accounts payable. 22. Paid bond interest and amortized the discount 23. Paid the annual installment on the amortized note. 64 Pildiviene af 10 000 in the charte 29. The alarms systems sold in transaction 8 were covered with a one-year warranty, Pacilio estimated that the warranty cost would be BO. The unemployment tax on the three employees has not been paid. Record the accrued unemployment tax on the salaries for the year. The unemployment tax rate is 4.5 percent and gross wages for all employees exceeded $7.000. 31 Recognized the employer Social Security and Medicare payroll tax that has not been paid on $7000 of salaries expense Prepare the statement of changes in stockholders' equity for the year ended December 31, Year 10. You will need to determine and enter the accounts and balances to prepare the Statement of Changes in stockholders' Equity. (Enter the balance sheet items in the order of liquidity.) General General Income Changes in Requirement Balance Statement Journal Ledger Statement Analysis SE Sheet of CF Indicate whether the transaction increases (+), decreases (-), or increases and decreases (+/-) for each element of the financial statements. Also, in the Cash Flow column, use the letters OA to designate operating activity. IA for investing activity. FA for financing activity. The first transaction is recorded as an example. When more than one activity can be correct response, select from options "A or IA", "IA or OA", "OA or FA". Show less Pucitio Security Services, Inc. Effect of Transactions on Financial Statements - Year 10 Balance Sheet Income Statement Libilities Reven Equity Statement of Cash Flow Assets Net Income Transaction 1 2 3 O O - OA 4 5 FA OA FA OA OF FA OA or FA 6 7 + 3 + FA 9 OOOOOOOOOOOOOOO FA OOO DAO A or HA 10 11 + OA O FA 12 + 13 OA O Ooooo OOOOOO 15 OA IA A 16 16 ! 17 18 19 20 21 22 0 000 OOOOO OOOOOO 99898 323 O O OOOOOOO 0 000 !! . 3 3 OAG FA IAO QA FA OF X * 3 3 OA DA DA FA 29 18