0 Bug-Off Exterminators provides pest control services and sells extermination products manufactured by other companies. Following is the company's unadjusted trial balance as of December 31, 2021. December 31, 2021 Unadjunted Trial Balance Debit Credit Cash $ 19,200 Accounts receivable 20,570 Allowance for doubtful accounts $ 850 Merchandise inventory 15,000 Trucks 43,000 Accumulated dopreciation-Trucka Equipment 51,600 Accumulated depreciation Equipment 14,070 Accounts payable 5,550 Estimated warranty liability 1,950 Unearned services revenue 0 Interest payable Long-term notes payable 26,000 Common stock 21,000 Retained earnings 63,600 Dividends 21,000 Extermination services revenue 82,000 Interest revenue 894 Sales (of merchandise) 93,826 Cost of goods sold 49,600 Depreciation expense-Trucks 0 Depreciation expense-Equipment Wages expense 46,000 Interest expense 0 Rent expense 20,000 Bad debts expense Miscellaneous expense 1,270 Repairs expense 13,500 utilities expense 9.000 0 0 0 (Prey 1 of 1 Next > Check my work Miscellaneous expense Repairs expense Utilities expense Warranty expense Totals 1,270 13,500 9,000 0 $ 309,740 $ 309,740 The following information in a through happlies to the company at the end of the current year. a. The bank reconciliation as of December 31, 2021, Includes the following facts. 74 Cash balance per bank $ 16,200 Canh ba la pr book | 19,200 Outstanding checks 2,350 Deposit in transit 3,000 Interest earned (on bank account) Bank service charges (Miscellaneous expense) 26 Reported on the bank statement is a canceled check that the company failed to record. (Information from the bank reconciliation allows you to determine the amount of this check, which is a payment on an account payable.) b. An examination of customers' accounts shows that accounts totaling $690 should be written off as uncollectible. Using an aging of receivables, the company determines that the ending balance of the Allowance for Doubtful Accounts should be $755. c. A truck is purchased and placed in service on January 1, 2021. Its cost is being depreciated with the straight-line method using the following facts and estimates. 4 Original cost $ 43,000 Expected salvage value $ 12,400 Useful life (years) d. Two items of equipment (a sprayer and an injector) were purchased and put into service in early January 2019. They are being depreciated with the straight-line method using these facts and estimates Dlout d. Two items of equipment (a sprayer and an injector) were purchased and put into service in early January 2019. They are being depreciated with the straight-line method using these facts and estimates Sprayer Injector Original cost $ 29,200 $ 22,400 Expected salvage value $ 3.000 $ 3,500 Useful life (years) e. On September 1, 2021, the company is paid $15,900 cash in advance to provide monthly service for an apartment complex for one year. The company began providing the services in September. When the cash was received the full amount was credited to the Extermination Services Revenue account t. The company offers a warranty for the services it sells. The expected cost of providing warranty service is (expression error of the extermination services revenue of $71,400 for 2021. No warranty expense has been recorded for 2021. All costs of servicing warranties in 2021 were properly debited to the Estimated Warranty Liability account. 9. The $26,000 long-term note is an (expression errory%, five-year interest-bearing note with interest payable annually on December 31. The note was signed with First National Bank on December 31, 2021 h. The ending Inventory of merchandise Is counted and determined to have a cost of $13,900. Bug-Off uses a perpetual inventory system Required: 1. Determine amounts for the following items: a. Correct (reconciled) ending balance of Cash; and the amount of the omitted check. b. Adjustment needed to obtain the correct ending balance of the Allowance for Doubtful Accounts. c. Depreciation expense for the truck used during year 2021. d. Depreciation expense for the two items of equipment used during year 2021 e. The adjusted 2021 ending balances of the Extermination Services Revenue and Unearned Services Revenue accounts. f. The adjusted 2021 ending balances of the Warranty Expense and the Estimated Warranty Liability accounts. g. The adjusted 2021 ending balances of the Interest Expense and the Interest Payable accounts. Prey 1 of 1 Next > a. Reconciled balance of cash a. Omitted check b. Necessary adjustment c. Depreciation expense Sprayer Injector d. Depreciation expense Extermination Services Revenue Unearned Services Revenue e. Ending balances after adjustment Warranty Expense Estimated Warranty Liability f. Ending balances after adjustment Interest Expense Interest Payable g. Ending balances after adjustment Reg 1 Reg 2 > Req 1 Reg 2 Req3 Req 4A Req 48 Req 4C Use the results of part 1 to complete the six-column table by first entering the appropriate adjustments for items a through g and then completing the adjusted trial balance columns. Hint: Item b requires two adjustments. (Do not round your intermediate calculations.) BUG-OFF EXTERMINATORS December 31, 2021 Unadjusted Trial Balance Adjustments Debit Credit Debit Credit $ 19,200 Account Title Adjusted Trial Balance Debit Credit 20,570 $ 850 15,000 43,000 0 Cash Accounts receivable Allowance for doubtful accounts Merchandise inventory Trucks Accumulated depreciation-Trucks Equipment Accumulated depreciation-Equipment Accounts payable Estimated warranty liability Unearned services revenue Interest payable Long-term notes payable 51,600 14,070 5,550 1,950 0 0 26,000 0 0 26,000 21,000 63,600 21,000 82,000 894 93,826 49,600 Unearned services revenue Interest payable Long-term notes payable Common stock Retained earnings Dividends Extermination services revenue Interest revenue Sales Cost of goods sold Depreciation expense-Trucks Depreciation expense-Equipment Wages expense Interest expense Rent expense Bad debts expense Miscellaneous expense Repairs expense Utilities expense Warranty expense Totals 0 0 46,000 0 20,000 0 1,270 13,500 9,000 0 $ 309,740 $ 309,740 Pro 1 of 1 Next WWW Prepare journal entries to record the adjustments entered on the six-column table. Assume Bug-Off's adjusted balance for Merchandise Inventory matches the year-end physical count. (If no entry is required for a particular transaction, select "No journal entry required in the first account field. Do not round your intermediate calculations.) View transaction lit Journal entry worksheet 411 VELUI Y HALLICO LE COI-CIU pity DILAI LUI VA FIU CILEY CYUNCU TUI O PAI LLUIGI LICNOLLIVIT the first account field. Do not round your intermediate calculations.) View transaction list Journal entry worksheet Record depreciation on the truck. Note: Enter debits before credits. Transaction General Journal Debit Credit (c) Record entry Clear entry View general journal View transaction list Journal entry worksheet Record depreciation on the equipment. Note: Enter debits before credits General Journal Debit Credit Transaction (d) Record entry Clear entry View general Journal Prey 1 of 1 # Next Req 1 Reg 2 Reg 3 Reg 4A Req 43 Reg 40 Prepare journal entries to record the adjustments entered on the six-column table. Assume Bug-off's adjusted balance for Merchandise Inventory matches the year-end physical count. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field. Do not round your intermediate calculations.) View transaction list Journal entry worksheet Recorded the adjustment for unearned revenues. Note: Enter debits before credits Transaction General Journal Dobit Credit (e) Draw 1 of 1 HH Next Reg 1 Reg 2 Req 3 Req 4A Req 48 Req 4C Prepare journal entries to record the adjustments entered on the six-column table. Assume Bug-Off's adjusted balance for Merchandise Inventory matches the year-end physical count. (If no entry is required for a particular transaction, select "No journal entry required in the first account field. Do not round your intermediate calculations.) View transaction lit Journal entry worksheet 4b. Prepare the statement of retained earnings (cash dividends during 2021 were 4c. Prepare a classified balance sheet for December 31, 2021. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req3 Req 4A Req 4B Req 4C Prepare the statement of retained earnings (cash dividends during 2021 were $21,00 BUG-OFF EXTERMINATORS Statement of Retained Earnings For Year Ended December 31, 2021 Req 1 Req 2 Req3 Req 4A Req 4B Req 4C Prepare a classified balance sheet for December 31, 2021. (Amounts to be deducted shou Do not round your intermediate calculations.) BUG-OFF EXTERMINATORS Balance Sheet December 31, 2021 Assets Current assets: Total current assets Plant assets: Plant assets: Total plant assets Total assets Liabilities Current liabilities: Total current liabilities Long-term liabilities: Total liabilities Equity Prey 1 of 1 + H Moyt Total current liabilities Long-term liabilities: Total liabilities Equity Total equity Total liabilities and equity Check my work Miscellaneous expense Repairs expense Utilities expense Warranty expense Totals 1,270 13,500 9,000 0 $ 309,740 $ 309,740 The following information in a through happlies to the company at the end of the current year. a. The bank reconciliation as of December 31, 2021, Includes the following facts. 74 Cash balance per bank $ 16,200 Canh ba la pr book | 19,200 Outstanding checks 2,350 Deposit in transit 3,000 Interest earned (on bank account) Bank service charges (Miscellaneous expense) 26 Reported on the bank statement is a canceled check that the company failed to record. (Information from the bank reconciliation allows you to determine the amount of this check, which is a payment on an account payable.) b. An examination of customers' accounts shows that accounts totaling $690 should be written off as uncollectible. Using an aging of receivables, the company determines that the ending balance of the Allowance for Doubtful Accounts should be $755. c. A truck is purchased and placed in service on January 1, 2021. Its cost is being depreciated with the straight-line method using the following facts and estimates. 4 Original cost $ 43,000 Expected salvage value $ 12,400 Useful life (years) d. Two items of equipment (a sprayer and an injector) were purchased and put into service in early January 2019. They are being depreciated with the straight-line method using these facts and estimates Dlout d. Two items of equipment (a sprayer and an injector) were purchased and put into service in early January 2019. They are being depreciated with the straight-line method using these facts and estimates Sprayer Injector Original cost $ 29,200 $ 22,400 Expected salvage value $ 3.000 $ 3,500 Useful life (years) e. On September 1, 2021, the company is paid $15,900 cash in advance to provide monthly service for an apartment complex for one year. The company began providing the services in September. When the cash was received the full amount was credited to the Extermination Services Revenue account t. The company offers a warranty for the services it sells. The expected cost of providing warranty service is (expression error of the extermination services revenue of $71,400 for 2021. No warranty expense has been recorded for 2021. All costs of servicing warranties in 2021 were properly debited to the Estimated Warranty Liability account. 9. The $26,000 long-term note is an (expression errory%, five-year interest-bearing note with interest payable annually on December 31. The note was signed with First National Bank on December 31, 2021 h. The ending Inventory of merchandise Is counted and determined to have a cost of $13,900. Bug-Off uses a perpetual inventory system Required: 1. Determine amounts for the following items: a. Correct (reconciled) ending balance of Cash; and the amount of the omitted check. b. Adjustment needed to obtain the correct ending balance of the Allowance for Doubtful Accounts. c. Depreciation expense for the truck used during year 2021. d. Depreciation expense for the two items of equipment used during year 2021 e. The adjusted 2021 ending balances of the Extermination Services Revenue and Unearned Services Revenue accounts. f. The adjusted 2021 ending balances of the Warranty Expense and the Estimated Warranty Liability accounts. g. The adjusted 2021 ending balances of the Interest Expense and the Interest Payable accounts. Prey 1 of 1 Next > a. Reconciled balance of cash a. Omitted check b. Necessary adjustment c. Depreciation expense Sprayer Injector d. Depreciation expense Extermination Services Revenue Unearned Services Revenue e. Ending balances after adjustment Warranty Expense Estimated Warranty Liability f. Ending balances after adjustment Interest Expense Interest Payable g. Ending balances after adjustment Reg 1 Reg 2 > Req 1 Reg 2 Req3 Req 4A Req 48 Req 4C Use the results of part 1 to complete the six-column table by first entering the appropriate adjustments for items a through g and then completing the adjusted trial balance columns. Hint: Item b requires two adjustments. (Do not round your intermediate calculations.) BUG-OFF EXTERMINATORS December 31, 2021 Unadjusted Trial Balance Adjustments Debit Credit Debit Credit $ 19,200 Account Title Adjusted Trial Balance Debit Credit 20,570 $ 850 15,000 43,000 0 Cash Accounts receivable Allowance for doubtful accounts Merchandise inventory Trucks Accumulated depreciation-Trucks Equipment Accumulated depreciation-Equipment Accounts payable Estimated warranty liability Unearned services revenue Interest payable Long-term notes payable 51,600 14,070 5,550 1,950 0 0 26,000 0 0 26,000 21,000 63,600 21,000 82,000 894 93,826 49,600 Unearned services revenue Interest payable Long-term notes payable Common stock Retained earnings Dividends Extermination services revenue Interest revenue Sales Cost of goods sold Depreciation expense-Trucks Depreciation expense-Equipment Wages expense Interest expense Rent expense Bad debts expense Miscellaneous expense Repairs expense Utilities expense Warranty expense Totals 0 0 46,000 0 20,000 0 1,270 13,500 9,000 0 $ 309,740 $ 309,740 Pro 1 of 1 Next WWW Prepare journal entries to record the adjustments entered on the six-column table. Assume Bug-Off's adjusted balance for Merchandise Inventory matches the year-end physical count. (If no entry is required for a particular transaction, select "No journal entry required in the first account field. Do not round your intermediate calculations.) View transaction lit Journal entry worksheet 411 VELUI Y HALLICO LE COI-CIU pity DILAI LUI VA FIU CILEY CYUNCU TUI O PAI LLUIGI LICNOLLIVIT the first account field. Do not round your intermediate calculations.) View transaction list Journal entry worksheet Record depreciation on the truck. Note: Enter debits before credits. Transaction General Journal Debit Credit (c) Record entry Clear entry View general journal View transaction list Journal entry worksheet Record depreciation on the equipment. Note: Enter debits before credits General Journal Debit Credit Transaction (d) Record entry Clear entry View general Journal Prey 1 of 1 # Next Req 1 Reg 2 Reg 3 Reg 4A Req 43 Reg 40 Prepare journal entries to record the adjustments entered on the six-column table. Assume Bug-off's adjusted balance for Merchandise Inventory matches the year-end physical count. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field. Do not round your intermediate calculations.) View transaction list Journal entry worksheet Recorded the adjustment for unearned revenues. Note: Enter debits before credits Transaction General Journal Dobit Credit (e) Draw 1 of 1 HH Next Reg 1 Reg 2 Req 3 Req 4A Req 48 Req 4C Prepare journal entries to record the adjustments entered on the six-column table. Assume Bug-Off's adjusted balance for Merchandise Inventory matches the year-end physical count. (If no entry is required for a particular transaction, select "No journal entry required in the first account field. Do not round your intermediate calculations.) View transaction lit Journal entry worksheet 4b. Prepare the statement of retained earnings (cash dividends during 2021 were 4c. Prepare a classified balance sheet for December 31, 2021. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req3 Req 4A Req 4B Req 4C Prepare the statement of retained earnings (cash dividends during 2021 were $21,00 BUG-OFF EXTERMINATORS Statement of Retained Earnings For Year Ended December 31, 2021 Req 1 Req 2 Req3 Req 4A Req 4B Req 4C Prepare a classified balance sheet for December 31, 2021. (Amounts to be deducted shou Do not round your intermediate calculations.) BUG-OFF EXTERMINATORS Balance Sheet December 31, 2021 Assets Current assets: Total current assets Plant assets: Plant assets: Total plant assets Total assets Liabilities Current liabilities: Total current liabilities Long-term liabilities: Total liabilities Equity Prey 1 of 1 + H Moyt Total current liabilities Long-term liabilities: Total liabilities Equity Total equity Total liabilities and equity