The trial balance of Pacific, Incorporated as of January 1, Year 9, had the following normal balances.

Cash $ 93,380

Petty cash 100

Accounts receivable 21,390

Allowance for doubtful accounts 2,485

Supplies 180

Prepaid rent 3,000

Merchandise inventory (23 @ $280) 6,440

Equipment 9,000

Van 27,000

Accumulated depreciation 14,900

Salaries payable 1,500

Common stock 50,000

Retained earnings 91,605

During Year 9, Pacific Inc. had the following transactions. (Questions 8-12 & 15-18 are purposely left out.)

Paid the salaries payable from Year 8.

Paid $9,000 on May 2, Year 9, for one years office rent in advance.

Purchased $425 of supplies on account.

Purchased 145 alarm systems at a cost of $290 each. Paid cash for the purchase.

After numerous attempts to collect from customers, wrote off $2,060 of uncollectible accounts receivable.

Sold 130 alarm systems for $580 each plus sales tax of 5 percent. All sales were on account.

Record cost of good sold for the sales transaction mentioned in previous transaction (number 6). Be sure to compute cost of goods sold using the FIFO cost flow method.

Pacific now offers a one-year warranty on its alarm systems. Paid $1,950 in warranty repairs during the year.

On September 1, borrowed $12,000 from State Bank. The note had an 8 percent interest rate and a one-year term to maturity.

Paid the accounts payable.

Paid a dividend of $10,000 to the shareholders.

Adjustments

There was $165 of supplies on hand at the end of the year.

Recognized the expired rent for the office building for the year.

Recognized uncollectible accounts expense for the year using the allowance method. The company revised its estimate of uncollectible accounts based on prior years experience. This year, Pacific estimates that 2.75% of sales on account will not be collected.

Recognized depreciation expense on the equipment and the van. The equipment has a five-year life and a $2,000 salvage value. The van has a four-year life and a $6,000 salvage value. The company uses double-declining-balance for the van and straight-line for the equipment. (A full years depreciation was taken in Year 8, the year of acquisition.)

The alarm systems sold in transaction 6 were covered with a one-year warranty. Pacific estimated that the warranty cost would be 3 percent of alarm sales.

Recognized the accrued interest on the note payable at December 31, Year 9.

requirerments:

General Journal tab - Prepare the journal entries to record transactions 1-7, 13-14 & 19-20. Then prepare the necessary adjusting entries (21) through (26) to correctly report net income for the period.

General Ledger tab - Each journal entry is posted automatically to the general ledger.

Trial Balance tab - The ending balance values from the General Ledger tab flows through to the Trial Balance tab.

Income Statement tab - Use the drop-down to select the accounts properly included on the income statement.

Statement of Changes in Stockholders' Equity tab - Prepare the statement of changes in stockholders equity for the year ended December 31, Year 9.

Balance Sheet tab - Prepare a classified Balance Sheet at December 31, Year 9.

Prepare the journal entries to record transactions 1.20 (8-12 5.1518 are omitted). Then prepare the necessary adjusting entrias (21) through (26) to correctly report net income for the period. (If no entry is required for a transaction, select "No foumal entry required" in the first account field. Round your answers to the nearest doliar amount.) Journal entry worksheet Faid whe salaries payabie rrom rear s. Record the transaction. Note: Ender detits before crocits. Each journal entry is posted automatically to the general ledger. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. The ending balance values from the General Ledger tab flows through to the Trial Balance below. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Choose the appropriate accounts to be reported on the income statement. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Prepare the statement of changes in stockholders' equity for the year ended December 31, Year 9, You will need to determine and enter the accounts and balances to prepare the Statement of Changes in Stockholders' Equity. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. The balance sheet is the accounting equation: Assets = Vabilities + Equity. Each asset and liability account is reported separately on the balance sheet. Choose the appropriate accounts to be reported on the balance sheet. The unadjunted. adjusted, or post-closing balances will appear for each account, based on your selection. (Enter the balance shueet theirs in the order of liguidity.)