The trial balance of pacillo 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 accounts 1,334 Supplies 250 Prepaid rent 3,600 Merchandise inventory (18 $285) 5,130 Land 4,000 Salaries Payable 2,100 Common Stock 50,000 Retained Earnings 75,894 During 2018 Pacillo Security Services experienced the following transactions Paid the salaries payable from 2017 Purchased equipment and van for a lump sum of $36,000 cash on January 2, 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 the 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 Jun 30 The fund had $12 cash and receipts of $45 for yard mowing, $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 cash 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 Recognized uncollectible accounts expense for the year using the allowance method Pacilio estimates that 3 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 $6,000 salvage value The company uses double declining balance for the van and straight straight line for the equipment Accrued salaries at December 31, 2018, were $1,500 DIRECTIONS PREPARE THE JOURNAL ENTRIES TO CLOSE THE TEMPORARY ACCOUNTS TO RETAINED EARNINGS

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The trial balance of pacillo 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 accounts- 1,334

Supplies- 250

Prepaid rent- 3,600

Merchandise inventory (18@$285)- 5,130

Land- 4,000

Salaries Payable- 2,100

Common Stock- 50,000

Retained Earnings- 75,894

During 2018 Pacillo Security Services experienced the following transactions:

Paid the salaries payable from 2017
Purchased equipment and van for a lump sum of $36,000 cash on January 2, 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 the 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 Jun 30. The fund had $12 cash and receipts of $45 for yard mowing, $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 cash 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.
Recognized uncollectible accounts expense for the year using the allowance method. Pacilio estimates that 3% 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 $6,000 salvage value. The company uses double-declining balance for the van and straight-straight line for the equipment.
Accrued salaries at December 31, 2018, were $1,500.

DIRECTIONS: PREPARE THE JOURNAL ENTRIES TO CLOSE THE TEMPORARY ACCOUNTS TO RETAINED EARNINGS