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The trial balance of Pacilio Security Services Inc. as of January $1,2019,$ had the following normal balances:Cash$$93,380$Petty cash$100$Accounts receivable$21,390$Allowance for doubtful accounts$2,485$Supplies$180$Prepaid rent$3,000$Merchandise inventory $(23$ @ $$280)6,440$Equipment$9,000$Van$27,000$Accumulated depreciation$14,900$Salaries payable$1,500$Common stock$50,000$Retained earnings$91,605$ CashPetty cashAccounts receivableAllowance for doubtful accountsSuppliesPrepaid rentMerchandise inventory $(23$ @ $$280)$EquipmentVanAccumulated depreciationSalaries payableCommon stockRetained earnings $$93,38010021,3902,4851803,0006,4409,00027,00014,9001,50050,00091,605$ During $2019,$ Pacilio Security Services experienced the following transactions:$1.$ Paid the salaries payable from $2018\mathrm{.}2.$ Paid $$9,000$ on May $2,2019,$ for one year's office rent in advance$\mathrm{.}3.$ Purchased$$425$ of supplies on account$\mathrm{.}4.$ Purchased $145$ alarm systems at a cost of $$290$ each. Paid cash for the purchase$\mathrm{.}5.$ After numerous attempts to collect from customers, wrote off$$2,060$ of uncollectible accounts receivable$\mathrm{.}6.$ Sold $130$ alarm systems for $$580$ each plus sales tax of $5$ percent. All sales were on account. $($Be sure to compute cost of goods sold using the FIFO cost flow method.$)7.$ Billed$$107,000$ 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$\mathrm{.}8.$ Replenished the petty cash fund on June $30.$ The fund had $$5$ cash and has receipts of$$60$ for yard mowing, $$15$ for office supplies expense, and$$17$ for miscellaneous expenses$\mathrm{.}9.$ Collected the amount due from the credit card company$\mathrm{.}10.$ Paid the sales tax collected on $$69,600$ of the alarm sales$\mathrm{.}11.$ Paid installers and other employees a total of$$65,000$ for salaries for the year. Assume the Social Security tax rate is $6$ percent and the Medicare tax rate is $1\mathrm{.}5$ percent. Federal income taxes withheld amounted to $$7,500.$ Cash was paid for the net amount of salaries due$\mathrm{.}12.$ Pacilio now offers a one$-$year warranty on its alarm systems. Paid$$1,950$ in warranty repairs during the year$\mathrm{.}13.$ On September $1,$ borrowed $$12,000$ from State Bank. The note had an $8$ percent interest rate and a one$-$year term to maturity$\mathrm{.}14.$ Collected$$136,100$ of accounts receivable during the year$\mathrm{.}15.$ Paid $$15,000$ of advertising expense during the year$\mathrm{.}16.$ Paid$$7,200$ of utilities expense for the year$\mathrm{.}17.$ Paid the payroll taxes, both the amounts withheld from the salaries plus the employer share of Social Security tax and Medicare tax, on $$60,000$ of the salaries plus$$7,000$ of the federal income tax that was withheld. $($Unemployment taxes were not paid at this time.$)18.$ Paid the accounts payable$\mathrm{.}19.$ Paid a dividend of $$10,000$ to the shareholders.Adjustments$20.$ There was$$165$ of supplies on hand at the end of the year$\mathrm{.}21.$ Recognized the expired rent for the office building for the year$\mathrm{.}22.$ Recognized uncollectible accounts expense for the year using the allowance method. The company revised its estimate of uncollectible accounts based on prior years' experience. This year, Pacilio estimates that $2\mathrm{.}75$ percent of sales on account will not be collected$\mathrm{.}23.$ Recognized depreciation expense on the equipment and the van. The equipment has a $5-$year life and a $$2,000$ salvage value. The van has a $4-$year life and a$$6,000$ salvage value. The company uses double$-$declining$-$balance for the van and straight$-$line for the equipment. $($A full year's depreciation was taken in $2018,$ the year of acquisition.$)24.$ The alarm systems sold in transaction $6$ were covered with a one$-$year warranty. Pacilio estimated that the warranty cost would be $3$ percent of alarm sales$\mathrm{.}25.$ Recognized the accrued interest on the note payable at December $31,2019\mathrm{.}26.$ The unemployment tax on salaries has not been paid. Recorded the accrued unemployment tax on the salaries for the year. The unemployment tax rate is $4\mathrm{.}5$ percent. $($$$14,000$ of salaries is subject to this tax.$)27.$ Recognized the employer Social Security and Medicare payroll tax that has not been paid on$$5,000$ of salaries expense.

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