any help would be great, i am really stuck and am having a huge brain block, thank you in advance.
Bug-On 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, 2019, December 31, 2019 Unadjusted Trial Balance Cash $ 21,000 Accounts receivable 6,000 Allowance for doubtful accounts S 868 Merchandise inventory 17,700 Trucks $2.000 Accum, depreciation-Trucks 0 Equipment 115.400 Accum, depreciation Equipment 28,200 Accounts payable 6,000 Estimated warranty liability 2,400 Unearned services revenue 0 Interest payable 0 Long-term notes payable 35,000 Common stock 30,000 Retained carings 75.300 Dividends 30,000 Extermination services revenue 100,000 Interest revenue 912 Sales (of merchandise) 129,826 Cost of goods sold 52,300 Depreciation expense--Trucks 0 Depreciation expense --Equipment Wages expense 55.000 Interest expense 0 Rent expense 29,000 Bad debts expense 0 Miscellaneous expense 1,306 Repairs expense 18,000 Utilities expense 10.800 Warranty expense 0 Totals $ 408,506 S 408,506 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, 2019, includes the following facts. Cash balance per bank Cash balance ner hans $ 17,100 1 1. The bank reconciliation as of December 31, 2019, includes the following facts. Cash balance per bank $ 17,100 Cash balance per books 21,000 Outstanding checks 2.800 Deposit in transit 3,450 Interest earned (on bank account) Bank service charges (miscellaneous expense) 35 92 = Reported on the bank statement is a canceled check that the company failee 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 $699 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 5800. c. A truck is purchased and placed in service on January 1, 2019. Its cost is being depreciated with the straight-line method using the following facts and estimates. Original cost $ 42,000 Expected salvage value $ 16,000 Lisetul life (years) d. Two items of equipment (a sprayer and an injector) were purchased and put into service in early January 2017. They are being depreciated with the straight-line method using these facts and estimates. Sprayer Injector Original cost $ 43,000 $ 22.000 Expected salvage value $3,000 $4,500 Useful life (years) 8 c. On September 1, 2019, the company is paid $26,700 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. 1. The company offers a warranty for the services it sells. The expected cost of providing warranty service is 2.5% of the extermination services revenue of $82,200 for 2019. No warranty expense has been recorded for 2019. All costs of servicing warranties in 2019 were property debited to the Estimated Warranty Liability account, g. The $25,000 long-term note is an 8%, five-year, interest-bearing note with interest payable annun.on December. The note was signed with First National Ramber 2010 g. The $25,000 long-term note is an 8%, five-year, interest-bearing note with interest payable annually on December 31. The note was signed with First National Bank on December 31, 2019 h. The ending inventory of merchandise is counted and determined to have a cost of $17.700. 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 2019. d. Depreciation expense for the two items of equipment used during year 2019 e. The adjusted 2019 ending balances of the Extermination Services Revenue and Uneared Services Revenue accounts f. The adjusted 2019 ending balances of the accounts for Warranty Expense and Estimated Warranty Liability g. The adjusted 2019 ending balances of the accounts for Interest Expense and Interest Payable. Reconciled balance = Omitted check $17.693selected answer incorrect S2.800 selected answer incorrect S63 I selected answer correct b Necessary adjustment Depreciation expense $6,500selected answer correct d. Depreciation expense Sprayer Injector $5,000selected answer correct $3.500selected answer come! Unearned Services Revenue Services Revenue Ending balances $17,800selected after adjustment $82,200selected answer correct answer correct Estimated Warranty Expense Warranty Liability Ending balances S2,055selected answer correct 54,455selected after adjustment answer correct Interest Payable Interest Expres Ending balances after adjustment Interest Payable S400selected anwwer incorrect Soselected answer incorrect Part 2 Use the results of part I to complete the six-column table by first entering the appeopriate adjustments for items a through and then completing the adjusted trial balance columns Four Item requires two adjustments (Do not found your intermediate calculations.) Adjustments Dehit Credit Adjusted Trial Balance Delit Credit BUG-OFF EXTERMINATORS December 31, 2019 Unadjusted Trial Balance Account Title Debit Credit Cash 521.000 Accounts receivable 6,000 Allowance for doubtfial $868 accounts Merchandise inventory 17,700 Tricks 52.000 Accuede Trucks 10 Equipment 115.400 Accute decor, Equip 28.200 Accounts payable Estin, warranty liability Loured services rev 0 Interest payable 0 Long-term notes payable 35,000 Common stock 30.000 Retained camings 15.300 Dividends Extermination services 100.000 6.000 30,000 912 129.26 $2,300 II Interest revenue Sales Cost of goods sold De expense-Trucks | D Wages expertise Interest expense Rent expense Baddebts expertise Miscellaneous expense Repairs expense Utilities expense Warranty experie Tocals 0 55,000 0 29.000 0 1.306 18.000 10.800 0 $408.SOS SR 505 SO so SO SO 35,000 10.000 75.300 30,000 100.000 912 129.836 52.300 Long temnoles payable Common stock Retained camings Dividends Extermination services revenue Interest revenue Sales Cost of goods sold Depose expense Trucks De expense-Equip Wages experte Interest expense Rent expense Baddebis experts Miscellaneous expense Repairs expense Utilities expense Warranty expense Totals 0 $5.000 0 29.000 0 1.306 18.000 10.800 10 5.408,506 S168.505 50 SO SO so Part 3 Propune journal entries to record the adjustments entered on the six-column table. Assume Bug-Offs 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. De not found your intermediate calculation) . Record the adjustment to the Cash account 2)Record the write off of uncollectible accounts 3)Record the adjustment for bad debts 4)Rccord depreciation on the truck 5)Record depreciation on the equipment byRecorded the adjustment for uncarned revenues. 7) Record the estimated warranty expense. >Record the adjustment for interest Part 4a Prepare a single-step income statement for your 2019 Part 41 Prepare the statement of retained carnings (cash dividends during 2019 were $30,000) for 2009 Part 4 Prepare a classified balance sheet as at 2019. (Negative amounts should be indicated by a minus sign Do not round your intermediate calculations) Bug-On 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, 2019, December 31, 2019 Unadjusted Trial Balance Cash $ 21,000 Accounts receivable 6,000 Allowance for doubtful accounts S 868 Merchandise inventory 17,700 Trucks $2.000 Accum, depreciation-Trucks 0 Equipment 115.400 Accum, depreciation Equipment 28,200 Accounts payable 6,000 Estimated warranty liability 2,400 Unearned services revenue 0 Interest payable 0 Long-term notes payable 35,000 Common stock 30,000 Retained carings 75.300 Dividends 30,000 Extermination services revenue 100,000 Interest revenue 912 Sales (of merchandise) 129,826 Cost of goods sold 52,300 Depreciation expense--Trucks 0 Depreciation expense --Equipment Wages expense 55.000 Interest expense 0 Rent expense 29,000 Bad debts expense 0 Miscellaneous expense 1,306 Repairs expense 18,000 Utilities expense 10.800 Warranty expense 0 Totals $ 408,506 S 408,506 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, 2019, includes the following facts. Cash balance per bank Cash balance ner hans $ 17,100 1 1. The bank reconciliation as of December 31, 2019, includes the following facts. Cash balance per bank $ 17,100 Cash balance per books 21,000 Outstanding checks 2.800 Deposit in transit 3,450 Interest earned (on bank account) Bank service charges (miscellaneous expense) 35 92 = Reported on the bank statement is a canceled check that the company failee 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 $699 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 5800. c. A truck is purchased and placed in service on January 1, 2019. Its cost is being depreciated with the straight-line method using the following facts and estimates. Original cost $ 42,000 Expected salvage value $ 16,000 Lisetul life (years) d. Two items of equipment (a sprayer and an injector) were purchased and put into service in early January 2017. They are being depreciated with the straight-line method using these facts and estimates. Sprayer Injector Original cost $ 43,000 $ 22.000 Expected salvage value $3,000 $4,500 Useful life (years) 8 c. On September 1, 2019, the company is paid $26,700 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. 1. The company offers a warranty for the services it sells. The expected cost of providing warranty service is 2.5% of the extermination services revenue of $82,200 for 2019. No warranty expense has been recorded for 2019. All costs of servicing warranties in 2019 were property debited to the Estimated Warranty Liability account, g. The $25,000 long-term note is an 8%, five-year, interest-bearing note with interest payable annun.on December. The note was signed with First National Ramber 2010 g. The $25,000 long-term note is an 8%, five-year, interest-bearing note with interest payable annually on December 31. The note was signed with First National Bank on December 31, 2019 h. The ending inventory of merchandise is counted and determined to have a cost of $17.700. 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 2019. d. Depreciation expense for the two items of equipment used during year 2019 e. The adjusted 2019 ending balances of the Extermination Services Revenue and Uneared Services Revenue accounts f. The adjusted 2019 ending balances of the accounts for Warranty Expense and Estimated Warranty Liability g. The adjusted 2019 ending balances of the accounts for Interest Expense and Interest Payable. Reconciled balance = Omitted check $17.693selected answer incorrect S2.800 selected answer incorrect S63 I selected answer correct b Necessary adjustment Depreciation expense $6,500selected answer correct d. Depreciation expense Sprayer Injector $5,000selected answer correct $3.500selected answer come! Unearned Services Revenue Services Revenue Ending balances $17,800selected after adjustment $82,200selected answer correct answer correct Estimated Warranty Expense Warranty Liability Ending balances S2,055selected answer correct 54,455selected after adjustment answer correct Interest Payable Interest Expres Ending balances after adjustment Interest Payable S400selected anwwer incorrect Soselected answer incorrect Part 2 Use the results of part I to complete the six-column table by first entering the appeopriate adjustments for items a through and then completing the adjusted trial balance columns Four Item requires two adjustments (Do not found your intermediate calculations.) Adjustments Dehit Credit Adjusted Trial Balance Delit Credit BUG-OFF EXTERMINATORS December 31, 2019 Unadjusted Trial Balance Account Title Debit Credit Cash 521.000 Accounts receivable 6,000 Allowance for doubtfial $868 accounts Merchandise inventory 17,700 Tricks 52.000 Accuede Trucks 10 Equipment 115.400 Accute decor, Equip 28.200 Accounts payable Estin, warranty liability Loured services rev 0 Interest payable 0 Long-term notes payable 35,000 Common stock 30.000 Retained camings 15.300 Dividends Extermination services 100.000 6.000 30,000 912 129.26 $2,300 II Interest revenue Sales Cost of goods sold De expense-Trucks | D Wages expertise Interest expense Rent expense Baddebts expertise Miscellaneous expense Repairs expense Utilities expense Warranty experie Tocals 0 55,000 0 29.000 0 1.306 18.000 10.800 0 $408.SOS SR 505 SO so SO SO 35,000 10.000 75.300 30,000 100.000 912 129.836 52.300 Long temnoles payable Common stock Retained camings Dividends Extermination services revenue Interest revenue Sales Cost of goods sold Depose expense Trucks De expense-Equip Wages experte Interest expense Rent expense Baddebis experts Miscellaneous expense Repairs expense Utilities expense Warranty expense Totals 0 $5.000 0 29.000 0 1.306 18.000 10.800 10 5.408,506 S168.505 50 SO SO so Part 3 Propune journal entries to record the adjustments entered on the six-column table. Assume Bug-Offs 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. De not found your intermediate calculation) . Record the adjustment to the Cash account 2)Record the write off of uncollectible accounts 3)Record the adjustment for bad debts 4)Rccord depreciation on the truck 5)Record depreciation on the equipment byRecorded the adjustment for uncarned revenues. 7) Record the estimated warranty expense. >Record the adjustment for interest Part 4a Prepare a single-step income statement for your 2019 Part 41 Prepare the statement of retained carnings (cash dividends during 2019 were $30,000) for 2009 Part 4 Prepare a classified balance sheet as at 2019. (Negative amounts should be indicated by a minus sign Do not round your intermediate calculations)
