Pacilio Security Services, Inc. Statement of Cash Flows For the Year Ended December 31, Year 11 Cash flows from operating activities: Net cash flow from operating activities Cash flows from investing activities: 0 Net cash flows from investing activities Cash flows from financing activities: Net cash flow from financing activities 0 0 Ending cash balance Pacilio Security Services, Inc Balance Sheet At December 31, Year 11 Assets 0 Liabilities Stockholders' Equity Total Paid-in Capital 0 124,816 124,816 124,816 Total Liabilities and Stockholders' Equity 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 sale 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 c on account. 4 percent fee. The remaining $67,000 were sale 11. Replenished the petty cash fund on June 30. The fu s on account. Sales tax is not charged on this service nd had $10 cash and receipts of $75 for yard mowing and $15 for office suppl 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 instalerercent. Federal income taxes withheld amounted to $10,600. No employee exceeded $10000 in tota 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 income taxes wages. The net salaries were paid in cash. 16. On October 1, declared a dividend on the preferred stock and a $1 per share dividend on the common stock to be paid to hareholders of record on October 15, payable on November 1, Year 11 7. Paid $1,625 in warranty repairs during the year 18. On November 1, 19. Paid $18,500 of advertising expense during the year 20. Paid $6,100 of utilities expense for the year. 21. Paid $9.200 of the Employee Income Tax Payable, $5,280 of the FICA Tax- Soc. Sec. Tax Payable and $1.320 of Year 11, paid the dividends that had been previously declared Tax Payable. Also, paid the Payroll Tax Expense for the 75% employer matching of FICA taxes on $88,000 of salaries. Medicare 22. Paid the accounts payable 23. Paid bond interest and amortized the discount. The bond was issued in Ye 24. Pa ar 10 and pays interest at 6 percent. id the annual installment of $14,238 on the amortized note. The interest rate for the note is 7 percent. Adjustment 25. There was $190 of supplies on hand at the end of the year 26. Recognized the uncollectible accounts expense for the year using the allowa percent of nce method. Pacilio now estimates that 1 sales on account will not be collected. preciation expense on the equipment, van, and building. The equipment, purchased in Year 8, has a five-year age value. The van has a four-year life and a $6,000 salvege value. The building has a 40-year life and a $10,000 life and 27. Recognized de a $2,000 salv salvage value. The company uses straight-line for the equipment and the building. The van is fully percent of alarm sales. year. The unemployment tax rate is 4.5 percent and gross wages for all three employees exceeded $7000. 7 were covered with a one-year warranty. Pacilio estimated that the warranty cost would be 2 28. The alarm systems sold in transaction 29. The u 30. Recognized the employer Social Security and Medicare payroll tax that has not been paid on $8,000 of salaries expense nemployment tax on the three employees has not been paid. Record the accrued unemployment tax on the salaries for the Cash Petty cash Accounts receivable Allowance for doubtful accounts Supplies Merchandise inventory (48e s300) Equipment Van Building Accumulated depreciation Land Sales tax payable Employee income tax payable FICA-Social Security tax payable FICA-Medicare tax payable Warranty payable Unemployment tax payable Notes payable-Building Bonds payable Discount on bonds payable Common stock Retained earnings $113,718 100 39,390 4,662 210 14,400 9,000 27,000 125,000 28,075 25,000 390 1,000 840 210 918 945 92,762 50,000 800 se,00e 124,816 Pacilio Security Services, Inc. Statement of Cash Flows For the Year Ended December 31, Year 11 Cash flows from operating activities: Net cash flow from operating activities Cash flows from investing activities: 0 Net cash flows from investing activities Cash flows from financing activities: Net cash flow from financing activities 0 0 Ending cash balance Pacilio Security Services, Inc Balance Sheet At December 31, Year 11 Assets 0 Liabilities Stockholders' Equity Total Paid-in Capital 0 124,816 124,816 124,816 Total Liabilities and Stockholders' Equity 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 sale 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 c on account. 4 percent fee. The remaining $67,000 were sale 11. Replenished the petty cash fund on June 30. The fu s on account. Sales tax is not charged on this service nd had $10 cash and receipts of $75 for yard mowing and $15 for office suppl 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 instalerercent. Federal income taxes withheld amounted to $10,600. No employee exceeded $10000 in tota 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 income taxes wages. The net salaries were paid in cash. 16. On October 1, declared a dividend on the preferred stock and a $1 per share dividend on the common stock to be paid to hareholders of record on October 15, payable on November 1, Year 11 7. Paid $1,625 in warranty repairs during the year 18. On November 1, 19. Paid $18,500 of advertising expense during the year 20. Paid $6,100 of utilities expense for the year. 21. Paid $9.200 of the Employee Income Tax Payable, $5,280 of the FICA Tax- Soc. Sec. Tax Payable and $1.320 of Year 11, paid the dividends that had been previously declared Tax Payable. Also, paid the Payroll Tax Expense for the 75% employer matching of FICA taxes on $88,000 of salaries. Medicare 22. Paid the accounts payable 23. Paid bond interest and amortized the discount. The bond was issued in Ye 24. Pa ar 10 and pays interest at 6 percent. id the annual installment of $14,238 on the amortized note. The interest rate for the note is 7 percent. Adjustment 25. There was $190 of supplies on hand at the end of the year 26. Recognized the uncollectible accounts expense for the year using the allowa percent of nce method. Pacilio now estimates that 1 sales on account will not be collected. preciation expense on the equipment, van, and building. The equipment, purchased in Year 8, has a five-year age value. The van has a four-year life and a $6,000 salvege value. The building has a 40-year life and a $10,000 life and 27. Recognized de a $2,000 salv salvage value. The company uses straight-line for the equipment and the building. The van is fully percent of alarm sales. year. The unemployment tax rate is 4.5 percent and gross wages for all three employees exceeded $7000. 7 were covered with a one-year warranty. Pacilio estimated that the warranty cost would be 2 28. The alarm systems sold in transaction 29. The u 30. Recognized the employer Social Security and Medicare payroll tax that has not been paid on $8,000 of salaries expense nemployment tax on the three employees has not been paid. Record the accrued unemployment tax on the salaries for the Cash Petty cash Accounts receivable Allowance for doubtful accounts Supplies Merchandise inventory (48e s300) Equipment Van Building Accumulated depreciation Land Sales tax payable Employee income tax payable FICA-Social Security tax payable FICA-Medicare tax payable Warranty payable Unemployment tax payable Notes payable-Building Bonds payable Discount on bonds payable Common stock Retained earnings $113,718 100 39,390 4,662 210 14,400 9,000 27,000 125,000 28,075 25,000 390 1,000 840 210 918 945 92,762 50,000 800 se,00e 124,816