The trial balance of Pacilio Security Services, Incorporated as of January 1, Year 10, had the following normal balances. Cash Petty Cash Accounts Receivable Allowance for doubtful accounts Supplies Prepaid rent Merchandise inventory (38 @ $290) Equipment Van Accumulated depreciation Sales tax payable Employee income tax payable FICA-Social Security tax payable FICA-Medicare tax payable Warranty payable Unemployment tax payable Interest payable Notes payable Common stock Retained earnings $ 122,475 100 27,400 4,390 165 3,000 11,020 9,000 27,000 23,050 290 500 600 150 312 630 320 12,000 50,000 107,918 During Year 10, 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 10, purchased land and a building for $150,000. The building was appraised at $125,000 and the land at $25,000. Pacilio paid $50,000 cash and financed the balance. The balance was financed with a 10-year installment note. The note had an interest rate of 7 percent and annual payments of $14,238 due on the last day of the year. 4. On January 1, Year 10, issued $50,000 of 6 percent, five-year bonds. The bonds were issued at 98. 5. Purchase $660 of supplies on account. 6. Purchased 170 alarm systems at a cost of $300. Cash was paid for the purchase. 7. After numerous attempts to collect from customers, wrote off $2,450 of uncollectible accounts receivable. A 8. Sold 160 alarm systems for $580 each plus sales tax of 5 percent. All sales were on account. 9. Recorded cost of goods sold related to the sale in item 8 (Be sure to compute cost of goods sold using the FIFO cost flow method.) 10. Billed $120,000 of monitoring services for the year. Credit card sales amounted to $36,000, and the credit card company charged a 4 percent fee. The remaining $84,000 were sales on account. Sales tax is not charged on this service. 11. Replenished the petty cash fund on June 30. The fund had $11 cash and receipts of $65 for yard mowing and $24 for office supplies expense. 12. Collected the amount due from the credit card company. 13. Paid the sales tax collected on $85,000 of the alarm sales. 14. Collected $167,000 of accounts receivable during the year. 15. Paid installers and other employees a total of $82,000 for salaries for the year Assume the

The trial balance of Pacilio Secunty Services, Incorporated as of January 1, Year 10, had the following normal balances. Duting Yeat 10, Pacilio Security Services experienced the following transactions: 1 Paid the sales tax payable from Year 9 2. Paid the balance of the payroll liablities due for Year 9 (federal income tax, FICA taxes, and unemployment taxes). 3. On January 1, Year 10, purchased land and a building for $150,000. The building was appraised at $125,000 and the land at $25,000. Pacilio paid \$50,000 cash and financed the balance. The balance was financed with a 10 -year instaliment note. The note had an interest rate of 7 percent and annual payments of $14,238 due on the last day of the year, 4. On January 1, Year 10, issued $50,000 of 6 percent, five-year bonds. The bonds were issued at 98 . 5. Purchase $660 of supplies on account. 6. Purchased 170 alarm systems at a cost of $300. Cash was paid for the purchase 7. After numerous attempts to collect from customers, wrote off $2.450 of uncollectible accounts receivable. 8. Sold 160 alarm systems for $580 each plus sales tax of 5 percent. All sales were on account. 9. Recorded cost of goods sold related to the sale in ilem 8 (Be sure to compute cost of goods sold using the FIFO cost flow method) 10. Blled $120,000 of monitoring services for the year Credit card sales amounted to $36,000, and the credit card company charged a 4 percent fee The remaining $84,000 were soles on account. Sales tax is not charged on this service. 11. Replenished the petty cash fund on June 30 . The fund had $11 cash and receipts of $65 for yard mowing and $24 for office supplies expense. 12. Collected the amount due from the credit card company. 13 Paid the sales tax collected on $85,000 of the alarm sales 14. Collected $167,000 of accounts receivable during the year. 15. Paid installers and other employees a total of $82,000 for salaries for the vear Accume 12 Collected the amount due from the credit card company. 13. Paid the sales tax collected on $85,000 of the alam sales. 14. Collected $167,000 of accounts receivable during the year. 15. Paid installers and other employees a total of $82,000 for salaries for the yeat Assume the Social Security tax rate is 6 percent and the Medicare tax rate is 1.5 percent. Federal income taxes with held amounted to $9.600. The net amount of salaries was paid in cash. 16. Paid $1,250 in warranty repairs during the year: 17. On September 1. paid the note and interest owed to State Bank. The $12,000 one-year note had an 8 percent interest rate. Assume an adjusting entry had been recorded for accrued interest at the end of Year 9 18. Paid $18,000 of advertising expense during the year. 19. Paid $5,600 of utilties expense for the year 20. Paid the payroll Habilities, both the amounts withheld from the salanes plus the employer share of Social Security tax and Medicare tax on $75,000 of the salaries plus $8,600 of the federal income tax that was witheid (Disregard unemployment taxes in this entry) 21. Paid the eccounts payable 22. Paid bond interest and amotized the discount 23. Paid the annual instaliment on the note payable issued with Transaction 3. 24. Paid a dividend of $10,000 to the shareholders. Adjustments 25. There was $210 of supplies on hand at the end of the year. 26. Recognized the expired rent occutring in Year 10 for rent paid for the office building in Year 9 27. Recognized the uncoliectible accounts expense for the year using the allowance method. Pocilio now estimates that 15 percent of sales on account will not be collected 28. Recognized depreciaton expense on the equipment, van, ond building. The equipment has a 5 year life and a 52.000 salvage value. The van has a 4 year life and a $6,000 salvage value. The building has a 40 year life and a $10,000 salvage value. The compary uses doubte-declining balance for the van and straight-ine for the equipment and the burding. The equipment and van were purchased in Year 8 and a full year of depreciation was taken for both in Year 8 29 The alarms systems soid in transaction 8 were covered with a one-year warranty. Pacilio estimated that the warranty cost would be 2 percent of alarm sales 30. 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 tate is 4.5 percent and gross wages for alf employees exceeded 57,000 31 Recognized the employer Soctal Secunty and Medicare payroli tax that has not been paid on $7,000 of salaries expense General Journal tab-Prepare the journal entries to record transactions (1) through (24). Then prepare the necessary adjusting entries ( 25 ) through ( 31 ) to correctly report net income for the period. Then record the closing entries (32) through (34) as of December 31 , Year 10. 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-downs 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 10. Balance Sheet tab - Prepare a classified Balance Sheet at December 31, Year 10. Statement of Cash Flows tab-Prepare the statement of cash flows for year ended December 31, Year 10. Analysis tab Use a hotizontal statements model to show how each transaction affects the balance sheet, income statement, and statement of cash flows