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Bug - Off Exterminators provides pest control services and sells extermination products manufactured by other companiesFollowing is the company's unadjusted trial balance as of December
BugOff Exterminators provides pest control services and sells extermination products manufactured by other companiesFollowing is the company's unadjusted trial balance as of December December Unadjusted Trial Balance Debit Credit Cash $ Accounts receivable Allowance for doubtful accounts Merchandise inventory Trucks debited Accumulated depreciationTrucks credit Equipment debit Accumulated depreciation equipment credit Accounts payable credit Estimated warranty liability credit Unearned services revenue credit Interest payable credit Longterm notes payable Common stock Retained earnings Dividend debit Extermination services revenue credit Interest revenue credit Sales of merchandise credit Cost of goods sold debit Depreciation expenseTrucks debit Depreciation expenses equipment debit Wage expenses debit Interest expense debit Rent expenses debit Bad debts expense debit Miscellaneous expense debit Repairs expense debit Utilities expense debit Warranty expense debit Totals for debit: $ Totals for credit: $ a The bank reconciliation as of December includes the following facts Cash balance Cash balance per books Outstanding checks Deposit in transit Interest earned on bank account $ Bank service chargers miscellaneous expense $ Reported on the bank statement is a canceled check that the company failed to recordInformation from the bank reconciliation allows you to determine the amount of this check, which is a payment on an account payableb An examination of customersaccounts shows that accounts totaling $ 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 $ c A truck is purchased and placed in service on January Its cost is being depreciated with the straightline method using the following facts and estimates Original cost Expected salvage value Useful life years The original cost is $ for sprayer. The Injector is $ For Expected salvage value The sprayer is $ the Injector is $ Useful lifeyears sprayer is Injector is On September the company is paid $ 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 The company offers a warranty for the services it sells. The expected cost of providing warranty service is of the extermination services revenue of $ for No warranty expense has been recorded for All costs of servicing warranties in were properly debited to the Estimated Warranty Liability account. The $ longterm note is an fiveyear, interestbearing note with interest payable annually on December The note was signed with First National Bank on December The ending inventory of merchandise is counted and determined to have a cost of $ BugOff uses a perpetual inventory system.Determine amounts for the following items: Correct reconciled ending balance of Cash; and the amount of the omitted check. Adjustment needed to obtain the correct ending balance of the Allowance for Doubtful Accounts Depreciation expense for the truck used during year Depreciation expense for the two items of equipment used during year The adjusted ending balances of the Extermination Services Revenue and Unearned Services Revenue accounts. The adjusted ending balances of the Warranty Expense and the Estimated Warranty Liability accounts The adjusted ending balances of the Interest Expense and the Interest Payable accounts Use the results of part to complete the sixcolumn 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 Prepare journal entries to record the adjustments entered on the sixcolumn table. Assume BugOff's adjusted balance for Merchandise Inventory matches the yearend physical counta Prepare a singlestep income statement for b Prepare the statement of retained earnings cash dividends during were $ for Prepare a classified balance sheet for December
BugOff Exterminators provides pest control services and sells extermination products manufactured by other companiesFollowing is the company's unadjusted trial balance as of December December Unadjusted Trial Balance Debit Credit Cash $ Accounts receivable Allowance for doubtful accounts Merchandise inventory Trucks debited Accumulated depreciationTrucks credit Equipment debit Accumulated depreciation equipment credit Accounts payable credit Estimated warranty liability credit Unearned services revenue credit Interest payable credit Longterm notes payable Common stock Retained earnings Dividend debit Extermination services revenue credit Interest revenue credit Sales of merchandise credit Cost of goods sold debit Depreciation expenseTrucks debit Depreciation expenses equipment debit Wage expenses debit Interest expense debit Rent expenses debit Bad debts expense debit Miscellaneous expense debit Repairs expense debit Utilities expense debit Warranty expense debit Totals for debit: $ Totals for credit: $ a The bank reconciliation as of December includes the following facts Cash balance Cash balance per books Outstanding checks Deposit in transit Interest earned on bank account $ Bank service chargers miscellaneous expense $ Reported on the bank statement is a canceled check that the company failed to recordInformation from the bank reconciliation allows you to determine the amount of this check, which is a payment on an account payableb An examination of customersaccounts shows that accounts totaling $ 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 $ c A truck is purchased and placed in service on January Its cost is being depreciated with the straightline method using the following facts and estimates Original cost Expected salvage value Useful life years The original cost is $ for sprayer. The Injector is $ For Expected salvage value The sprayer is $ the Injector is $ Useful lifeyears sprayer is Injector is On September the company is paid $ 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 The company offers a warranty for the services it sells. The expected cost of providing warranty service is of the extermination services revenue of $ for No warranty expense has been recorded for All costs of servicing warranties in were properly debited to the Estimated Warranty Liability account. The $ longterm note is an fiveyear, interestbearing note with interest payable annually on December The note was signed with First National Bank on December The ending inventory of merchandise is counted and determined to have a cost of $ BugOff uses a perpetual inventory system.Determine amounts for the following items: Correct reconciled ending balance of Cash; and the amount of the omitted check. Adjustment needed to obtain the correct ending balance of the Allowance for Doubtful Accounts Depreciation expense for the truck used during year Depreciation expense for the two items of equipment used during year The adjusted ending balances of the Extermination Services Revenue and Unearned Services Revenue accounts. The adjusted ending balances of the Warranty Expense and the Estimated Warranty Liability accounts The adjusted ending balances of the Interest Expense and the Interest Payable accounts Use the results of part to complete the sixcolumn 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 Prepare journal entries to record the adjustments entered on the sixcolumn table. Assume BugOff's adjusted balance for Merchandise Inventory matches the yearend physical counta Prepare a singlestep income statement for b Prepare the statement of retained earnings cash dividends during were $ for Prepare a classified balance sheet for December
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