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table [ [ Revenues , , , ] , [ Security service revenue,,, ] , [ Monitoring service revenue, 1 2 0 , 0
tableRevenuesSecurity service revenue,,,Monitoring service revenue,Interest revenue,,,Total Revenues,,$Cost of goods sold,,,Gross margin,,,ExpensesCredit card expense,Maintenance expense,Supplies expense,Salaries expense,Warranty expense,Advertising expense,Utilities expense,Payroll tax expense,Bonds payable,Interest expense,Rent expense,DepThe account balances of Pacilio Security Services, Incorporated as of January Year are shown here:
Cash $
Petty Cash
Accounts Receivable
Allowance for doubtful accounts
Supplies
Prepaid rent
Merchandise inventory @ $
Equipment
Van
Accumulated depreciation
Sales tax payable
Employee income tax payable
FICASocial Security tax payable
FICAMedicare tax payable
Warranty payable
Unemployment tax payable
Interest payable
Notes payable
Common stock
Retained earnings
During Year Pacilio Security Services experienced the following transactions:
Paid the sales tax payable from Year
Paid the balance of the payroll liabilities due for Year federal income tax, FICA taxes, and unemployment taxes
On January Year purchased land and a building for $ The building was appraised at $ and the land at $ Pacilio paid $ cash and financed the balance. The balance was financed with a year installment note. The note had an interest rate of percent and annual payments of $ due on the last day of the year.
On January Year issued $ of percent, five year bonds. The bonds were issued at
Purchase $ of supplies on account.
Purchased alarm systems at a cost of $ Cash was paid for the purchase.
After numerous attempts to collect from customers, wrote off $ of uncollectible accounts receivable.
Sold alarm systems for $ each plus sales tax of percent. All sales were on account. Be sure to compute cost of goods sold using the FIFO cost flow method.
Record the cost of goods sold related to the sale from Event using the FIFO method.
Billed $ of monitoring services for the year. Credit card sales amounted to $ and the credit card company charged a percent fee. The remaining $ were sales on account. Sales tax is not charged on this service.
Replenished the petty cash fund on June The fund had $ cash and receipts of $ for yard mowing and $ for office supplies expense.
Collected the amount due from the credit card company.
Paid the sales tax collected on $ of the alarm sales.
Collected $ of accounts receivable during the year.
Paid installers and other employees a total of $ for salaries for the year. Assume the Social Security tax rate is percent and the Medicare tax rate is percent. Federal income taxes withheld amounted to $ The net amount of salaries was paid in cash.
Paid $ in warranty repairs during the year.
On September paid the note and interest owed to State Bank.
Paid $ of advertising expense during the year.
Paid $ of utilities expense for the year.
Paid the payroll liabilities, both the amounts withheld from the salaries plus the employer share of Social Security tax and Medicare tax, on $ of the salaries plus $ of the federal income tax that was withheld. Disregard unemployment taxes in this entry.
Paid the accounts payable.
Paid bond interest and amortized the discount.
Paid the annual installment on the amortized note.
Paid a dividend of $ to the shareholders.
Adjustments
There was $ of supplies on hand at the end of the year.
Recognized the expired rent for the office building for the year.
Recognized the uncollectible accounts expense for the year using the allowance method. Pacilio now estimates that percent of sales on account will not be collected.
Recognized depreciation expense on the equipment, van, and building. The equipment has a year life and a $ salvage value. The van has a year life and a $ salvage value. The building has a year life and a $ salvage value. The company uses doubledecliningbalance for the van and straightline for the equipment and the building. The equipment and van were purchased in Year and a full year of depreciation was taken for both in Year
The alarms systems sold in transaction were covered with a oneyear warranty. Pacilio estimated that the warranty cost would be percent of alarm sales.
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 percent and gross wages for all employees exceeded $
Recognized the employer Social Security and Medicare payroll tax that has not been paid on $ of salaries expense.
IMPORTANT: i have filled out an adjusted income statment based on the above information can you please review and correct my income statment shown in the picture
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