The trial balance of Pacilio Security Services Inc. as of January 1, 2019, had the following normal balances: $93,380 100 Cash Petty cash 21,390 2,485 Accounts receivable Allowance for doubtful accounts 180 Supplies Prepaid rent Merchandise inventory (23 @ S280) Equipment Van Accumulated depreciation Salaries payable 3,000 6,440 9,000 27,000 14,900 1,500 50,000 91,605 Common stock Retained earnings During 2019 Pacilio Security Services experienced the following transactions: 1. Paid the salaries payable from 2018. 2. Paid $9,000 on May 2, 2019, for one year's office rent in advance. 3. Purchased $425 of supplies on account. Accounting for Current Liabilities and Pay 4. Purchased 145 alarm systems at a cost of $290 cach. Paid cash for the purchase. 5. After numerous attempts to collect from customers, wrote off $2,060 of uncollectible accounts receivable. 6. Sold 130 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.) 7. Billed S107.000 of monitoring services for the year. Credit card sales amounted to $42.000. and the credit card company charged a 4 percent fee. The remaining $65,000 were sales on account. Sales tax is not charged on this service. 8. Replenished the petty cash fund on June 30. The fund had $5 cash and has receipts of S60 for yard mowing, S15 for office supplies expense, and S17 for miscellaneous expenses. 9. Collected the amount due from the credit card company. 10. Paid the sales tax collected on S69.600 of the alarm sales. 11. Paid installers and other employees a total of $65.000 for salaries for the year. Assume the Social Security tax rate is 6 percent and the Medicare tax rate is .5 percent. Federal income taxes withheld amounted to $7.500. Cash was paid for the net amount of salaries due. 12. Parilio w pllers Jurm Ihid SL050 in eous expenses. the amount due from the credit card company. 10. Paid the sales tax collected on S69,600 of the alarm sales. 11. Paid installers and other employees a total of $65,000 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 $7,500. Cash was paid for the net amount of salaries due. 12. Pacilio now offers a one-year warranty on its alarm systems. Paid $1,950 in warranty repairs during the year. 13. On September 1, borrowed S12,000 from State Bank. The note had an 8 percent interest rate and a one-year term to maturity. 14. Collected $136, 100 of accounts receivable during the 15. Paid S15,000 of advertising expense during the year. 16. Paid $7,200 of utilities expense for the year. 17. Paid the payroll taxes, both the amounts withheld from the salaries plus the emplover share of Social Sccurity ta:and Medicare tax, on $60.000 of the salaries plus $7,000 of the federal income tax that was withheld. (Unemp oyment taxes were not paid at this time.) year. 18. Paid the accounts payable. 19. Paid a dividend of S10.000 to the shareholders. Adjustments 20. There wis S165 of supplies on hand at the end of the year. 21. Recognized the expired rent for the oflice building for the year 22. Recognized uncollectible accounts expense for the year using the allowance method The company revised its estimate of uncollectible accounts hased on prior vears experiene This vear Pacilio estimates that 2.75 percent of sales on account will nor be collected 23. Recognized depreciation expense on the equipment and the van The uipnent ha hle and a S2.000 salvane value. The n has sal dvar lile andS PAALI tINIL nas nOI been paid on $5.000 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. c. Prepare a trial balance. d. Prepare an income statement, statement of changes in stockholders equity. a classified balance sheet, and statement of cash flews. e. Close the temporary accounts to retained earnings. f. Post the closing entries to the T-accouns and prepare a post-closing trial balance. The trial balance of Pacilio Security Services Inc. as of January 1, 2019, had the following normal balances: $93,380 100 Cash Petty cash 21,390 2,485 Accounts receivable Allowance for doubtful accounts 180 Supplies Prepaid rent Merchandise inventory (23 @ S280) Equipment Van Accumulated depreciation Salaries payable 3,000 6,440 9,000 27,000 14,900 1,500 50,000 91,605 Common stock Retained earnings During 2019 Pacilio Security Services experienced the following transactions: 1. Paid the salaries payable from 2018. 2. Paid $9,000 on May 2, 2019, for one year's office rent in advance. 3. Purchased $425 of supplies on account. Accounting for Current Liabilities and Pay 4. Purchased 145 alarm systems at a cost of $290 cach. Paid cash for the purchase. 5. After numerous attempts to collect from customers, wrote off $2,060 of uncollectible accounts receivable. 6. Sold 130 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.) 7. Billed S107.000 of monitoring services for the year. Credit card sales amounted to $42.000. and the credit card company charged a 4 percent fee. The remaining $65,000 were sales on account. Sales tax is not charged on this service. 8. Replenished the petty cash fund on June 30. The fund had $5 cash and has receipts of S60 for yard mowing, S15 for office supplies expense, and S17 for miscellaneous expenses. 9. Collected the amount due from the credit card company. 10. Paid the sales tax collected on S69.600 of the alarm sales. 11. Paid installers and other employees a total of $65.000 for salaries for the year. Assume the Social Security tax rate is 6 percent and the Medicare tax rate is .5 percent. Federal income taxes withheld amounted to $7.500. Cash was paid for the net amount of salaries due. 12. Parilio w pllers Jurm Ihid SL050 in eous expenses. the amount due from the credit card company. 10. Paid the sales tax collected on S69,600 of the alarm sales. 11. Paid installers and other employees a total of $65,000 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 $7,500. Cash was paid for the net amount of salaries due. 12. Pacilio now offers a one-year warranty on its alarm systems. Paid $1,950 in warranty repairs during the year. 13. On September 1, borrowed S12,000 from State Bank. The note had an 8 percent interest rate and a one-year term to maturity. 14. Collected $136, 100 of accounts receivable during the 15. Paid S15,000 of advertising expense during the year. 16. Paid $7,200 of utilities expense for the year. 17. Paid the payroll taxes, both the amounts withheld from the salaries plus the emplover share of Social Sccurity ta:and Medicare tax, on $60.000 of the salaries plus $7,000 of the federal income tax that was withheld. (Unemp oyment taxes were not paid at this time.) year. 18. Paid the accounts payable. 19. Paid a dividend of S10.000 to the shareholders. Adjustments 20. There wis S165 of supplies on hand at the end of the year. 21. Recognized the expired rent for the oflice building for the year 22. Recognized uncollectible accounts expense for the year using the allowance method The company revised its estimate of uncollectible accounts hased on prior vears experiene This vear Pacilio estimates that 2.75 percent of sales on account will nor be collected 23. Recognized depreciation expense on the equipment and the van The uipnent ha hle and a S2.000 salvane value. The n has sal dvar lile andS PAALI tINIL nas nOI been paid on $5.000 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. c. Prepare a trial balance. d. Prepare an income statement, statement of changes in stockholders equity. a classified balance sheet, and statement of cash flews. e. Close the temporary accounts to retained earnings. f. Post the closing entries to the T-accouns and prepare a post-closing trial balance