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, 2019. December 31, 2019 Unadjusted Trial Balance $ 19,400 5,200 $ 852 15,300 44,000 0 78,600 21,800 5,600 2,000 0 0 27,000 22,000 64,900 Cash Accounts receivable Allowance for doubtful accounts Merchandise inventory Trucks Accum. depreciation-Trucks Equipment Accum. depreciation-Equipment Accounts payable Estimated warranty liability Unearned services revenue Interest payable Long-term notes payable Common stock Retained earnings Dividends Extermination services revenue Interest revenue Sales (of merchandise) 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 22,000 84,000 896 97,826 49,900 0 0 47,000 21,000 0 1,274 14,000 9,200 $326,874 $326,874 The following information in a through h applies 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 per books Outstanding checks Deposit in transit Interest earned (on bank account) Bank service charges (miscellaneous expense) $16,300 19,400 2,400 3,050 76 27 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 $691 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 $760. 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 Expected salvage value Useful life (years) $38,000 $12,800 4 2. 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 brequires two adjustments. 3. 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. 4a. Prepare a single-step income statement for year 2019. 4b. Prepare the statement of retained earnings (cash dividends during 2019 were $22,000) for 2019. 4c. Prepare a classified balance sheet as at 2019. 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 Unearned Services Revenue accounts. (Do not round your intermediate calculations.) 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. Show less a. Reconciled balance Omitted check b. Necessary adjustment Depreciation expense C. d. Sprayer Injector Depreciation expense e. Services Revenue Unearned Services Revenue Ending balances after adjustment f. Warranty Expense Estimated Warranty Liability Ending balances after adjustment g. Interest Expense Interest Payable Ending balances after adjustment 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, 2019 Unadjusted Trial Balance Adjustments Debit Credit Debit Credit $ 19,400 5,200 Adjusted Trial Balance Debit Credit Account Title Cash Accounts receivable Allowance for doubtful accounts $ 852 Merchandise inventory 15,300 Trucks 44,000 0 78,600 Accum. deprec.-Trucks Equipment Accum. deprec.-Equip Accounts payable Estim. warranty liability 21,800 5,600 2,000 Unearned services rev 0 0 27,000 22,000 Interest payable Long-term notes payable Common stock Retained earnings Dividends Extermination services revenue 64,900 22,000 84,000 Interest revenue 896 Sales 97,826 Cost of goods sold 49,900 0 Deprec. expense-Trucks Deprec. expense-Equip Wages expense 0 47,000 Interest expense 0 Rent expense 21,000 Bad debts expense 0 Miscellaneous expense 1,274 14,000 Repairs expense Utilities expense 9,200 Warranty expense 0 Totals $ 326,874 $ 326,874 Record the adjustment to the Cash account. Note: Enter debits before credits. Transaction General Journal Debit Credit (a) Record entry Clear entry View general journal 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 Record the write off of uncollectible accounts. Note: Enter debits before credits. Transaction General Journal Debit Credit (61) Record entry Clear entry View general journal 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 Record the adjustment for bad debts. Note: Enter debits before credits. Transaction General Journal Debit Credit (62) Record entry Clear entry View general journal 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 Record depreciation on the equipment. Note: Enter debits before credits. Transaction General Journal Debit Credit (d) Record entry Clear entry View general journal 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 Debit Credit (e) Record entry Clear entry View general journal 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 Record the estimated warranty expense. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal 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 Record the adjustment for interest. Note: Enter debits before credits. Transaction General Journal Debit Credit (9) Record entry Clear entry View general journal Prepare a single-step income statement for year 2019. BUG-OFF EXTERMINATORS Income Statement For Year Ended December 31, 2019 Revenues Total revenues Expenses Total expenses Prepare the statement of retained earnings (cash dividends during 2019 were $22,000) for 2019. BUG-OFF EXTERMINATORS Statement of Retained Earnings For Year Ended December 31, 2019 " Prepare a classified balance sheet as at 2019. (Negative amounts should be indicated by a minus sign. Do not round your intermediate calculations.) BUG-OFF EXTERMINATORS Balance Sheet December 31, 2019 Assets Current assets: Total current assets Plant assets: Total plant assets Total assets Liabilities Current liabilities: Total current liabilities Long-term liabilities: Total liabilities Equity Total liabilities and equity