he trial balance of Pacilio Security Services, Inc. as of January 1, Year 11, had the following normal balances. Cash Petty cash Accounts receivable Allowance for doubtful accounts $ 113,718 100 39,390 4,662 Supplies Merchandise inventory (48 @ $300) Equipment 210 14,400 9,000 Van Building 27,000 125,000 Accumulated depreciation 28,075 Land 25,000 Sales tax payable 390 Employee income tax payable 1,000 FICA-Social Security tax payable 840 FICA-Medicare tax payable 210 Warranty payable 918 Unemployment tax payable 945 Notes payable-Building 92,762 Bonds payable 50,000 Discount on bonds payable 800 Common stock 50,000 Retained earnings 124,816 During Year 11, Pacilio Security Services experienced the following transactions: 1. Paid the sales tax payable from Year 10. 2. Paid the balance of the payroll liabilities due for Year 10 (federal income tax, FICA taxes, and unemployment taxes). 3. Issued 5,000 additional shares of the $5 par value common stock for $8 per share. 4. Issued 1,000 shares of $50 stated value, 5 percent cumulative preferred stock for $52 per share. 5. Purchased $500 of supplies on account. 6. Purchased 190 alarm systems at a cost of $310. Cash was paid for the purchase. 7. After numerous attempts to collect from customers, wrote off $3,670 of uncollectible accounts receivable. 8. Sold 210 alarm systems for $600 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 $125,000 of monitoring services for the year. Credit card sales amounted to $58,000, and the credit card company charged a 4 percent fee. The remaining $67,000 were sales on account. Sales tax is not charged on this service. 11. Replenished the petty cash fund on June 30. The fund had $10 cash and receipts of $75 for yard mowing and $15 for office supplies expense. 12. Collected the amount due from the credit card company. 13. Paid the sales tax collected on $105,000 of the alarm sales. 14. Collected $198,000 of accounts receivable during the year. 15. Paid installers and other employees a total of $96,000 for salaries for the year. Assume the Social Security tax rate is 6 percent and the Medicare tax rate is 1.5 percent. Federal income taxes withheld amounted to $10,600. No employee exceeded $110,000 in total wages. The net salaries were paid in cash