The trial balance of Pacilio Security Services, Inc. as of January 1, 2018, had the following normal balances. Cash $93,708 Petty Cash 100 Accounts Receivable 22,540 Allowance for Doubtful Accts 1,334 Supplies 250 Prepaid Rent 3,600 Inventory (18 @ $285) 5,130 Land 4,000 Salaries Payable 2,100 Common Stock 50,000 Retained Earnings 75,894 During 2018 Pacilio Security Services experienced the following transactions: Paid the salaries payable from 2017. Purchased equipment and a van for a lump sum of $36,000 cash on January 22, 2018. The equipment was appraised for $10,000 and the van was appraised for $30,000. Paid $9,000 on May 1, 2018, for one years office rent in advance. Purchased $300 of supplies on account. Purchased 120 alarm systems at a cost of $280 each. Paid cash for the purchase. After numerous attempts to collect from customers, wrote off $2,350 of uncollectible accounts receivable. Sold 115 alarm systems for $580 each. All sales were on account. (Be sure to compute Cost of Goods Sold using FIFO cost flow method). Billed $86,000 of monitoring services for the year. Credit card sales amounted to $36,000 and the credit card company charged a 4% fee. The remaining $50,000 were sales on account. Replenished the Petty Cash fund on June 30. The fund had $12 cash and receipts of $45 for yard mowing (use Maintenance Expense) $28 for office supplies expense, and $11 for miscellaneous expenses. Collected the amount due from the credit card company. Paid installers and other employees a total of $52,000 for salaries. Collected $115,500 of accounts receivable during the year. Paid $12,500 of advertising expense during the year. Paid $6,800 of utilities expense for the year. Sold the land, which was purchased in 2011, for $12,000. Paid the accounts payable. Paid a dividend of $10,000 to shareholders. Adjustments Determined that $180 of supplies were on hand at the end of the year. Recognized the expired rent for both the old van and the office building for the year. The lease on the van was not renewed. Rent paid on March 1, 2017 for the van was $4,800. (note: you must use the beginning balance of Prepaid Rent to calculate this entry) Recognized uncollectible accounts expense for the year using the allowance method. Pacilio estimates that 3 percent of sales on account will be 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 straight-line depreciation for both the van and the equipment. Accrued salaries at December 31, 2018, were $1,500. Required: Record the above transactions in general journal form. Post the transactions to T-accounts. Prepare a trial balance Prepare an income statement, a statement of changes in stockholders equity, and a balance sheet. Prepare the journal entries to close the temporary accounts to retained earnings. CHECK FIGURES Trial Balance: Ending Cash balance 93,380 Ending Supplies balance 180 Total Debits/Credits 297,229 Income Statement: Gross Margin 120,410 Net Income 33,961 Statement of Changes in Stockholders Equity: Ending Retained Earnings 99,855 Balance Sheet: Total Assets 151,355