The trial balance of Pacilio Security Services, Incorporated as of January $1,$ Year $10,$ had the following normal balances.

Cash $ $122,475$

Petty Cash $100$

Accounts Receivable $27,400$

Allowance for doubtful accounts $4,390$

Supplies $165$

Prepaid rent $3,000$

Merchandise inventory $(38$ @ $$290)11,020$

Equipment $9,000$

Van $27,000$

Accumulated depreciation $23,050$

Sales tax payable $290$

Employee income tax payable $500$

FICA$$Social Security tax payable $600$

FICA$$Medicare tax payable $150$

Warranty payable $312$

Unemployment tax payable $630$

Interest payable $320$

Notes payable $12,000$

Common stock $50,000$

Retained earnings $107,918$

During Year $10,$ Pacilio Security Services experienced the following transactions:

Paid the sales tax payable from Year $9.$

Paid the balance of the payroll liabilities due for Year $9($federal income tax, FICA taxes, and unemployment taxes$).$

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.

On January $1,$ Year $10,$ issued $$50,000$ of $6$ percent, five$-$year bonds. The bonds were issued at $98.$

Purchase $$660$ of supplies on account.

Purchased $170$ alarm systems at a cost of $$300.$ Cash was paid for the purchase.

After numerous attempts to collect from customers, wrote off $$2,450$ of uncollectible accounts receivable.

Sold $160$ alarm systems for $$580$ each plus sales tax of $5$ percent. All sales were on account.

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.$)$

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.

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.

Collected the amount due from the credit card company.

Paid the sales tax collected on $$85,000$ of the alarm sales.

Collected $$167,000$ of accounts receivable during the year.

Paid installers and other employees a total of $$82,000$ for salaries for the year. Assume the Social Security tax rate is $6$ percent and the Medicare tax rate is $1\mathrm{.}5$ percent. Federal income taxes withheld amounted to $$9,600.$ The net amount of salaries was paid in cash.

Paid $$1,250$ in warranty repairs during the year.

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 $9.$

Paid $$18,000$ of advertising expense during the year.

Paid $$5,600$ 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 $$75,000$ of the salaries plus $$8,600$ 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 note payable issued with Transaction $3.$

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

Adjustments

There was $$210$ of supplies on hand at the end of the year.

Recognized the expired rent occurring in Year $10$ for rent paid for the office building in Year $9.$

Recognized the uncollectible accounts expense for the year using the allowance method. Pacilio now estimates that $1\mathrm{.}5$ percent of sales on account will not be collected.

Recognized depreciation expense on the equipment, van, and building. The equipment has a $5-$year life and a $$2,000$ salvage value. The van has a $4-$year life and a $$6,000$ salvage value. The building has a $40-$year life and a $$10,000$ salvage value. The 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 $8.$

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.

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 $4\mathrm{.}5$ percent and gross wages for all employees exceeded $$7,000.$

Recognized the employer Social Security and Medicare payroll tax that has not been paid on $$7,000$ of salaries expense.