The trial balance of pacillo security services inc as of January1 2018 had the following normal balances

              Cash-                                                                                              $93,708

              Petty Cash-    100

              Accounts Receivable- 22,540

              Allowance for doubtful accounts- 1,334

              Supplies- 250

              Prepaid rent-    3,600

              Merchandise inventory (18@$285)-    5,130

              Land- 4,000

              Salaries Payable-    2,100

              Common Stock-    50,000

              Retained Earnings- 75,894

During 2018 Pacillo Security Services experienced the followingtransactions:

1. Paid the salaries payable from 2017
2. Purchased equipment and van for a lump sum of $36,000 cash onJanuary 2, 2018. The equipment was appraised for $10,000 and thevan was appraised for $30,000.
3. Paid $9,000 on May 1, 2018, for one year’s office rent inadvance
4. Purchased $300 of supplies on account.
5. Purchased 120 alarm systems at a cost of $280 each. Paid cashfor the purchase.
6. After numerous attempts to collect from customers, wrote off$2,350 of uncollectible accounts receivable.
7. Sold 115 alarm systems for $580 each. All sales were onaccount. (Be sure to compute cost of goods sold using the FIFO costflow method.)
8. Billed $86,000 of monitoring services for the year. Credit cardsales amounted to $36,000, and the credit card company charged a 4%fee. The remaining $50,000 were sales on account.
9. Replenished the petty cash fund on Jun 30. The fund had $12cash and receipts of $45 for yard mowing, $28 for office suppliesexpense, and $11 for miscellaneous expenses.
10. Collected the amount due from the credit card company.
11. Paid installers and other employees a total of $52,000 cash forsalaries.
12. Collected $115,500 of accounts receivable during the year.
13. Paid $12,500 of advertising expense during the year.
14. Paid $6,800 of utilities expense for the year.
15. Sold the land, which was purchased in 2011, for $12,000.
16. Paid the accounts payable.
17. Paid a dividend of $10,000 to shareholders

Adjustments

18. Determined that $180 of supplies were on hand at the end of theyear.
19. Recognized the expired rent for both the old van and the officebuilding for the year. The lease on the van was not renewed. RentPaid on March 1, 2017, for the van was $4,800.
20. Recognized uncollectible accounts expense for the year usingthe allowance method. Pacilio estimates that 3% of sales on accountwill not be collected.
21. Recognized depreciation expense on the equipment and the van.The equipment has a five-year life and a $2,000 salvage value. Thevan has a four-year life and $6,000 salvage value. The company usesdouble-declining balance for the van and straight-straight line forthe equipment.
22. Accrued salaries at December 31, 2018, were $1,500.

DIRECTIONS: PREPARE AN INCOME STATEMENT, A STATEMENT OF CHANGESIN STOCKHOLDERS' EQUITY, AND A BALANCE SHEET