BugOff Exterminators provides pest control services and sells extermination products manufactured by other companies. Following 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

Accumulated depreciationTrucks

Equipment

Accumulated depreciationEquipment

Accounts payable

Estimated warranty liability

Unearned services revenue

Interest payable

Longterm notes payable

Common stock

Retained earnings

Dividends

Extermination services revenue

Interest revenue

Sales of merchandise

Cost of goods sold

Depreciation expenseTrucks

Depreciation expenseEquipment

Wages expense

Interest expense

Rent expense

Bad debts expense

Miscellaneous expense

Repairs expense

Utilities expense

Warranty expense

Totals $ $

The following information in a through h applies to the company at the end of the current year.

The bank reconciliation as of December includes the following facts.

Cash balance per bank $

Cash balance per books

Outstanding checks

Deposit in transit

Interest earned on bank account

Bank service charges miscellaneous expense

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.

An examination of customers accounts 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 $

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

Two items of equipment a sprayer and an injector were purchased and put into service in early January They are being depreciated with the straightline method using these facts and estimates.

Sprayer Injector

Original cost $ $

Expected salvage value $ $

Useful life years

On August 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 August. 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.

Required:

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 BugOffs adjusted balance for Merchandise Inventory matches the yearend physical count.

a Prepare a singlestep income statement for

b Prepare the statement of retained earnings cash dividends during were $ for

c Prepare a classified balance sheet for December