Trial Balance

The trial balance of Pacilio Security Services, Inc. as of January 1, Year 11, had the following normal balances. Cash Petty cash Accounts receivable Allowance for doubtful accounts Supplies Merchandise inventory (48 @ $300) Equipment Van Building Accumulated depreciation Land Sales tax payable Employee income tax payable FICA-Social Security tax payable FICA-Medicare tax payable Warranty payable Unemployment tax payable Notes payable-Building Bonds payable Discount on bonds payable Common stock Retained earnings $ 113, 718 180 39,390 4,662 210 14,400 9,000 27,000 125,000 28,075 25,000 390 1,000 840 210 918 945 92,762 50,000 800 50,000 124,816 During Year 11, Pacilio Security Services experienced the following transactions: 1. Paid the sales tax payable from Year 10. 2. Paid the balance of the payroll liabilities due for Year 10 (federal income tax, FICA taxes, and unemployment taxes) 3. Issued 5,000 additional shares of the $5 par value common stock for $8 per share. 4. Issued 1.000 shares of $50 stated value, 5 percent cumulative preferred stock for $52 per share. 5. Purchased $500 of supplies on account. 6. Purchased 190 alarm systems at a cost of $310. Cash was paid for the purchase. 7. After numerous attempts to collect from customers, wrote off $3,670 of uncollectible accounts receivable. 3. Sold 210 alarm systems for $600 each plus sales tax of 5 percent. All sales were on account. 9. Record the cost of goods sold related to the sale from Event 8 using the FIFO method. 10. Biled $125,000 of monitoring services for the year. Credit card sales amounted to $58,000, and the credit card company charged a 4 percent fee. The remaining $67,000 were sales on account. Sales tax is not charged on this service. 11. Replenished the petty cash fund on June 30. The fund had $10 cash and receipts of $75 for yard mowing and $15 for office supplies expense. 12. Collected the amount due from the credit card company. 13. Paid the sales tax collected on $105,000 of the alarm sales. 14. Collected $198,000 of accounts receivable during the year 15. Pald Installers and other employees a total of $96,000 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 $10,600. No employee exceeded $110,000 in total wages. The net salaries were paid in cash, 16. On October 1, declared a dividend on the preferred stock and a $1 per share dividend on the common stock to be paid to shareholders of record on October 15, payable on November 1, Year 11. 17. Paid $1625.in warranty repairs during the year. 18. On November 1, Year 11. pald the dividends that had been previously declared I 19. Paid $18.500 of advertising expense during the yean 20. Pald $6,100 of utilities expense for the year. 21. Paid the payroll liabilities, both the amounts withheld from the salaries plus the employer share of Social Security tax and Medicare tax, on $88,000 of the salarles plus $9,200 of the federal income tax that was withheld. 22. Paid the accounts payable. 23. Pald bond interest and amortized the discount. The bond was issued in Year 10 and pays interest at 6 percent. 24. Paid the annual installment of $14.238 on the amortized note: The Interest rate for the note is 7 percent Adjustment 25. There was $190 of supplies on hand at the end of the year 26. Recognized the uncollectible accounts expense for the year using the allowance method. Pacillo now estimates that 1 percent of sales on account will not be collected 27. Recognized depreciation expense on the equipment, van, and building. The equipment purchased in Year 8. has a five-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 straight line for the equipment and the building. The van is fully depreciated. 28. The alarm systems sold in transaction 8 were covered with a one-year warranty. Paclio estimated that the warranty cost would be 2 percent of alarm sales. 29. The unemployment tax on the three employees has not been pald. Record the accrued unemployment tax on the salaries for the year. The unemployment tax rate is 4.5 percent and gross wages for all three employees exceeded $7.000 30. Recognized the employer Social Security and Medicare payroll tax that has not been paid on $8.000 of salaries expense. General Journal Requirement General Ledger Analysis Income Statement Trial Balance Statement of CH Balance Sheet The balance sheet is the accounting equation: Assets Liabilities + Equity. Each asset and liability account is reported separately on the balance sheet. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. (Enter the balance sheet items in the order of liquidity.) Post-closing Pacilio Security Services, Incorporated Balance Sheet At December 31 Year 11 Assets 0 0 $ Liabilities 0 O 5 Stockholders' Equity Total Paid in Capital 0 287040 287040 267.00 Total abilities and Stockholders' Equity