54/799 17%. T The trial balance of Pacilio Security Services Inc. as of January 1, 2020, had the following normal balances: Search Com S122,475 100 27,400 4,390 165 3,000 11,020 9,000 27,000 23,050 290 Edit PDF Do Export PD 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 Nctes payable Common stock Retained earnings El Organize 500 La Send for 600 150 Commer 312 630 la Fill & sig 320 12,000 50,000 107.918 Scan & n Protect Your current During 2020 Pacilio Security Services experienced the following transactions 1. Paid the sales tax payable from 2019. I had the balance of the paroll liabilities due for 2019 (federal income tax, FICA taxes, and During 2020 Pacilio Security Services experienced the following transactions 1. Paid the sales tax payable from 2019. 2. Paid the balance of the payroll liabilities due for 2019 (federal income tax, FICA taxes, and unemployment taxes). 3. On January 1, 2020. 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, 2020, issued $50,000 of 6 percent, five year bonds. The bonds were issued at 98. 5. Purchase S660 of supplies on account. 6. Purchased 170 alarm systems at a cost of $300. Cash was paid for the purchase. us attempts to collect from customers. wroteoll S2,450 of uncollectible accounts receivable 8. Sold 160 alarm systems for $580 each plus sales tax of 5 percent. All sales were on account. (Be sure to compute cost of goods sold using the FIFO cost flow method.) 9. Billed S120.000 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 S84,000 were sales on account Sales tax is not charged on this service. 10. Replenished the petty cash fund on June 30. The fond had SIl cash and receipts of S65 for yard mowing and S24 for oflice supplies expense I 10. Replenished the petty cash fund on June 30. The fund had S11 cash and receipts of $65 for yard mowing and S24 for office supplies expense. 11. Collected the amount due from the credit card company. 12. Paid the sales tax collected on $85,000 of the alarm sales. 13. Collected S167,000 of accounts receivable during the year. 14. 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 1.5 percent. Federal income taxes withheld amounted to $9.600. The net amount of salaries was paid in cash. 15. Paid S1.250 in warranty repairs during the year. 16. On September 1, paid the note and interest owed to State Bank. 17. Paid $18,000 of advertising expense during the year. 18. Paid $5,600 of utilities expense for the year. 19. Paid the payroll liabilities, both the amounts withheld from the salaries plus the employ share of Social Security tax and Medicare tax, on $75,000 of the salaries plus $8.600 olt federal income tax that was withheld. (Disregard unemployment taxes in this entry.) 20. Paid the accounts payable. 21. Paid bond interest and amortized the discount. 22. Paid the annual installment on the amortized note. 23. Paid a dividend of S10,000 to the shareholders. Adjustments 24. There was $210 of supplies on hand at the end of the year. 25. Recognized the expired rent for the office building for the year. 26. Recognized the uncollectible accounts expense for the year using the allowance method Pacilio now estimates that 1.5 percent of sales on account will not be collected. 27. Recognized depreciation expense on the equipment, van, and building. The equipment has a 21. Paid bond interest and amortized the discount. 22. Paid the annual installment on the amortized note. 23. Paid a dividend of $10,000 to the shareholders. Adjustments 24. There was $210 of supplies on hand at the end of the year. 25. Recognized the expired rent for the office building for the year. 26. Recognized the uncollectible accounts expense for the year using the allowance method. Pacilio now estimates that 1.5 percent of sales on account will not be collected. 27. Recognized depreciation expense on the equipment, van, and building. The equipment has a live-year life and a $2.000 salvage value. The van has a four-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 2018 and a full year of depreciation was taken for both in 2018. 28. 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. 29. 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 4.5 percent and gross wages for all employees exceeded $7.000. 30. Recognized the employer Social Security and Medicare payroll tax that has not been paid on $7,000 of salaries expense. UPILLILUL HUCUSULUI LUI IULUI OLUPLULLULLO in 2018 28. 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. 29. 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 4.5 percent and gross wages for all employees exceeded $7,000. 30. Recognized the employer Social Security and Medicare payroll tax that has not been paid on $7,000 of salaries expense. Required a. Record the above transactions in general journal form. Round all amounts to nearest whole dollar. b. Post the transactions to the T-accounts. e. Prepare a trial balance. d. Prepare an income statement, statement of changes in stockholders' equity, a classified balance sheet, and statement of cash flows. e. Close the temporary accounts to retained earnings. 1. Post the closing entries to the T-accounts and prepare an alter-closing trial balance t here to search