Each student should work independently to complete the comprehensive problem. You may use your tek to and class notes, but you may not work together, seek help from the accounting lab or a private tutor. Pamure adhere to the honor code will result in a zero for this assignment. This assignment is due Friday December 6th at the beginning of class. No late submissions will be accepteur The trial balance of Pacolet Security System Sales & Service as of January 1, 2018, was as follows: 64,380 8,000 520 1,150 4,560 5,000 4,120 50,000 28,450 Cash Accounts Receivable Allowance for Doubtful Accounts Supplies Merchandise Inventory - Standard Alarms (19 @ $240) Merchandise Inventory - Deluxe Alarms (10 @ $500) Accounts Payable Common Stock Retained Earnings The following transactions occurred during 2018: Purchased a company van for $9,200 cash. The van had an estimated life of three years and estimated salvage value of $2,000. Jan 1 Paid $7,200 for one and a half year's rent in advance. Jan 2 Jan 15 Purchased 20 standard alarms systems for cash at a cost of $250 each. Feb 1 Paid $4,120 on accounts payable, but not within the discount period. Total cash paid was $4,204. Pacolet uses the net method to record inventory purchases. Mar 20 Purchased $500 of office supplies for cash. Purchased 10 deluxe alarm systems for cash at a cost of $550 each. Apr 1 Purchased another 25 standard alarm systems for cash at a cost of $260 each. Aug 1 Purchased on account 30 standard alarm systems at a cost of $265 each and 20 deluxe alarm systems at a cost of $575 each. Credit terms 2/10, n/30. Sept 5 Paid the September 5 invoice in full. Oct 3 Note: Pacolet Security System is a small, privately-owned business and does not employ a full-time accountant. The owner of Pacolet maintains a summary of the daily transactions and hires a CPA to prepare his nhancial statements at year-end. The following information is a summary of 2018 revenue and additional expenses. Please use December 31, 2018 as the date for each of the following 1. Installed 60 standard alarm systems for $33,000 and 30 deluxe alarm systems for $27,000. $45,000 of the sales were on account and the remainder were cash sales. Pacolet uses the FIFO method to record cost of goods sold. 2. Made a full refund to a dissatisfied customer who returned her deluxe system. The sale had been a cash sale for $900 (please debit Sales Returns & Allowances) with a cost of $550. 3. Installers earned a total of $16,200 in wages, $2,100 of which is payable in January 2019. 4. Sold $68,000 of monitoring services during the year on account (please credit Monitoring Revenue). Collected $97,400 of accounts receivable during the year and wrote off $600 of actual accounts receivable. 5. Paid $3,500 of advertising expense during the year. 6. 7. Paid $2,300 of utilities expense for the year. Adjustments 8. $200 of supplies were on hand at the end of the year. 9. Recognized rent expense for the year. 10. Recognized depreciation expense for the year. Pacolet uses the straight-line method. 11. Estimated that 2.5% of year-end accounts receivable will not be collected. Requirements Each student should work independently to complete the comprehensive problem. You may use your tek to and class notes, but you may not work together, seek help from the accounting lab or a private tutor. Pamure adhere to the honor code will result in a zero for this assignment. This assignment is due Friday December 6th at the beginning of class. No late submissions will be accepteur The trial balance of Pacolet Security System Sales & Service as of January 1, 2018, was as follows: 64,380 8,000 520 1,150 4,560 5,000 4,120 50,000 28,450 Cash Accounts Receivable Allowance for Doubtful Accounts Supplies Merchandise Inventory - Standard Alarms (19 @ $240) Merchandise Inventory - Deluxe Alarms (10 @ $500) Accounts Payable Common Stock Retained Earnings The following transactions occurred during 2018: Purchased a company van for $9,200 cash. The van had an estimated life of three years and estimated salvage value of $2,000. Jan 1 Paid $7,200 for one and a half year's rent in advance. Jan 2 Jan 15 Purchased 20 standard alarms systems for cash at a cost of $250 each. Feb 1 Paid $4,120 on accounts payable, but not within the discount period. Total cash paid was $4,204. Pacolet uses the net method to record inventory purchases. Mar 20 Purchased $500 of office supplies for cash. Purchased 10 deluxe alarm systems for cash at a cost of $550 each. Apr 1 Purchased another 25 standard alarm systems for cash at a cost of $260 each. Aug 1 Purchased on account 30 standard alarm systems at a cost of $265 each and 20 deluxe alarm systems at a cost of $575 each. Credit terms 2/10, n/30. Sept 5 Paid the September 5 invoice in full. Oct 3 Note: Pacolet Security System is a small, privately-owned business and does not employ a full-time accountant. The owner of Pacolet maintains a summary of the daily transactions and hires a CPA to prepare his nhancial statements at year-end. The following information is a summary of 2018 revenue and additional expenses. Please use December 31, 2018 as the date for each of the following 1. Installed 60 standard alarm systems for $33,000 and 30 deluxe alarm systems for $27,000. $45,000 of the sales were on account and the remainder were cash sales. Pacolet uses the FIFO method to record cost of goods sold. 2. Made a full refund to a dissatisfied customer who returned her deluxe system. The sale had been a cash sale for $900 (please debit Sales Returns & Allowances) with a cost of $550. 3. Installers earned a total of $16,200 in wages, $2,100 of which is payable in January 2019. 4. Sold $68,000 of monitoring services during the year on account (please credit Monitoring Revenue). Collected $97,400 of accounts receivable during the year and wrote off $600 of actual accounts receivable. 5. Paid $3,500 of advertising expense during the year. 6. 7. Paid $2,300 of utilities expense for the year. Adjustments 8. $200 of supplies were on hand at the end of the year. 9. Recognized rent expense for the year. 10. Recognized depreciation expense for the year. Pacolet uses the straight-line method. 11. Estimated that 2.5% of year-end accounts receivable will not be collected. Requirements