Question

The trial balance of Pacilio Security Services Inc, as of January 1,2020, had the following normal balances:

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 $ 660 of supplies on account.

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

7. After numerous attempts to collect from customers, wrote off $ 2.450 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 St 20.000 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 S 84,000 were sales on account Sales tax is not charged on this service.

10. 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.

Answer 1

Working Notes
Cash Account
Particulars Dr.	Amt	Particulars Cr.	Amt
By Balance B/d	122,475.00
By Cash Received		To Sales Tax	290.00
Issued Bond @ 98	49,000.00	To Employee tax	500.00
By Credit Card money	34,560.00	To SS tax	600.00
By Fund recevied from accounts Receivable	167,000.00	To Medicare	150.00
		To unemployment	630.00
		To Cash paid for Land & Building	50,000.00
		To Cash Paid for alarm system	51,000.00
		To Sales tax current year	85,000.00
		To Employee Salaries	66,250.00
		To Waranty repiar	1,250.00
		To Interest	320.00
		To Notes	12,000.00
		To Advertising Exp	18,000.00
		To Utilities Exp	5,600.00
		To Federal tax Current	8,600.00
		To SS tax - Employee	4,920.00
		To Medicare tax Emplyee	1,230.00
		To SS tax - Employer	4,920.00
		To Medicare tax Emplyer	1,230.00
		To Installment Paid	14,238.00
		To Dividend	10,000.00
		To Bond Interest	3,000.00
		To Supplies	660.00
		To Balance C/d	32,647.00
	373,035.00		373,035.00

Debtors
Particulars Dr.	Amt	Particulars Cr.	Amt
By Balance B/d	27,400.00	To Account Sales no sales tax	84,000.00
		To Sales wih Sales tax	85,000.00
		To Doubtful debts	4,390.00
		To Cash paid	167,000.00
		To Write off	2,450.00
By Balance C/d	315,440.00
	342,840.00		342,840.00