During Year 10, Pacilio Security Services experienced the following transactions:
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1. Paid the sales tax payable from Year 9. 2. Paid the balance of the payroll liabilities due for Year 9 (federal income tax, FICA taxes, and unemployment taxes). 3. On January 1, Year 10, 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 514.238 due on the last day of the year. 4. On January 1, Year 10, 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 $120000 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 $84,000 were sales on account. Sales tax is not charged on this service.
For Part 2 of this project. Complete the following problem. You can use electronic accounting forms, manual accounting forms, or excel to complete the problem. For the statements, prepare a comprehensive income statement and classified balance sheet. http://pccc.libguides.com/c.php?g=788143&p=5643682 http://pccc.libguides.com/c.php?g=788143&p=5643682