{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-07T06:28:22-04:00", "answer_date": "2024-06-07 06:28:22", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "2407660", "url": "\/study-help\/questions\/the-account-balances-of-pacilio-security-services-incorporated-as-of-2407660", "question_creation_date_js": "2024-06-07T06:28:22-04:00", "question_creation_date": "Jun 07, 2024 06:28 AM", "meta_title": "[Solved] The account balances of Pacilio Security | SolutionInn", "meta_description": "Answer of - The account balances of Pacilio Security Services, Incorporated as of January 1 , Year 1 0 , are shown here: Cash 1 2 | SolutionInn", "meta_keywords": "account,balances,pacilio,security,services,incorporated,january,1,year,shown,cash,2", "question_title_h1": "The account balances of Pacilio Security Services, Incorporated as of January 1 , Year 1 0 , are shown here: Cash 1 2 2 ,", "question_title": "The account balances of Pacilio Security Services, Incorporated as of January 1", "question_title_for_js_snippet": "The account balances of Pacilio Security Services, Incorporated as of January 1 , Year 1 0 , are shown here Cash 1 2 2 , 4 7 5 Petty Cash 1 0 0 Accounts Receivable 2 7 , 4 0 0 Allowance for doubtful accounts 4 , 3 9 0 Supplies 1 6 5 Prepaid rent 3 , 0 0 0 Merchandise inventory ( 3 8 $ 2 9 8 ) 1 1 , 0 2 0 Equipment 9 , 0 0 0 Van 2 7 , 0 0 0 Accumulated depreciation 2 3 , 0 5 0 Sales tax payable 2 9 0 Employee income tax payable 5 0 0 FICA Social Security tax payable 6 0 0 FICA Medicare tax payable 1 5 0 Warranty payable 3 1 2 Unemployment tax payable 6 3 0 Interest payable 3 2 0 Notes payable 1 2 , 0 0 0 Common stock 5 0 , 0 0 0 Retained earnings 1 0 7 , 9 1 8 During Year 1 0 , Pacilio 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 1 0 , purchased land and a building for $ 1 5 0 , 0 0 0 The building was appraised at $ 1 2 5 , 0 0 0 and the land at $ 2 5 , 0 0 0 Pacilio paid $ 5 0 , 0 0 0 cash and financed the balance The balance was financed with a 1 0 year installment note The note had an interest rate of 7 percent and annual payments of $ 1 4 , 2 3 8 due on the last day of the year 4 On January 1 , Year 1 0 , issued $ 5 0 , 0 0 0 of 6 percent, five year bonds The bonds were issued at 9 8 5 Purchase $ 6 6 0 of supplies on account 6 Purchased 1 7 0 alarm systems at a cost of $ 3 0 0 Cash was paid for the purchase 7 After numerous attempts to collect from customers, wrote off $ 2 , 4 5 0 of uncollectible accounts receivable 8 Sold 1 6 0 alarm systems for $ 5 8 0 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 ) 9 Record the cost of goods sold related to the sale from Event 8 using the FIFO method 1 0 Billed $ 1 2 0 , 0 0 0 of monitoring services for the year Credit card sales amounted to $ 3 6 , 0 0 0 , and the credit card company charged a 4 percent fee The remaining $ 8 4 , 0 0 0 were sales on account Sales tax is not charged on this service 1 1 Replenished the petty cash fund on June 3 0 The fund had $ 1 1 cash and receipts of $ 6 5 for yard mowing and $ 2 4 for office supplies expense 1 2 Collected the amount due from the credit card company 1 3 Paid the sales tax collected on $ 8 5 , 0 0 0 of the alarm sales 1 4 Collected $ 1 6 7 , 0 0 0 of accounts receivable during the year 1 5 Paid installers and other employees a total of $ 8 2 , 0 0 0 for salaries for the year Assume the Socjal Security tax rate is 6 percent and the Medicare tax rate is 1 5 percent Federal income taxes withheld amounted to $ 9 , 6 0 0 The net amount of salaries was paid in cash 1 6 Paid $ 1 , 2 5 0 in warranty repairs during the year 1 7 On September 1 , paid the note and interest owed to State Bank 1 8 Paid $ 1 8 , 0 0 0 of advertising expense during the year 1 9 Paid $ 5 , 6 0 0 of utilities expense for the year 2 0 Paid the payroll liabilities, both the amounts withheld from the salaries plus the employer share of Social Security tax and Medicare tax, on $ 7 5 , 0 0 0 of the salaries plus $ 8 , 6 0 0 of the federal income tax that was withheld ( Disregard unemployment taxes in this entry ) 2 1 Paid the accounts payable 2 2 Paid bond interest and amortized the discount 2 3 Paid the annual installment on the amortized note 2 4 Paid a dividend of $ 1 0 , 0 0 0 to the shareholders Adjustment 2 5 There was $ 2 1 0 of supplies on hand at the end of the year 2 6 Recognized the expired rent for the office building for the year 2 7 Recognized the uncollectible accounts expense for the year using the allowance method Pacilio now estimates that 1 5 percent of sales on account will not be collected 2 8 Recognized depreciation expense on the equipment, van, and building The equipment has a 5 year life and a $ 2 , 0 0 0 salvage value The van has a 4 year life and a $ 6 , 0 0 0 salvage value The building has a 4 0 year life and a $ 1 0 , 0 0 0 salvage value The company uses double declining balance for the van and straight line for the equipment and the building The equipment and van were purchased in Year 8 and a full year of depreciation was taken for both in Year 8 2 9 The alarms systems sold in transaction 8 were covered with a one year warranty Pacilio estimated that the warranty cost would be 2 percent of alarm sales 3 0 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 , 0 0 0 3 1 Recognized the employer Social Security and Medicare payroll tax that has not been paid on $ 7 , 0 0 0 of salaries expense Prepare the journal entries to record transactions ( 1 ) through ( 2 4 ) Then prepare the necessary adjusting entries ( 2 5 ) through ( 3 1 ) t correctly report net income for the period Then record the closing entries ( 3 2 ) through ( 3 4 ) as of December 3 1 , Year 1 0 Note If no entry is required for a transaction, select No journal entry required in the first account field Round final answers to the nearest", "question_description": "