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 Cash Accounts receivable Allowance for doubtful accounts Merchandise inventory Unadjusted Trial Balang $ 18,200 4,600 10,500 Accun depreciation Trucks Equipment Accum. depreciation Equipment Accounts payable Estimated warranty liability Unearned services revenue Interest payable Long-ters notes payable D. US, Capital D. BERS, withdrawals Extersination 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 Rent expenso Bad debts expense Miscellaneous expense Repairs expense Utilities expense Warranty expense Totals 22 The following information in a through h applies to the compa the end of the current year. a. The bank reconciliation as of December 31, 2019, includes the following fac 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) b. An examination of customers' accounts shows that accounts totaling $685 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 $730 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) $10.00 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. Original cost Expected salvage value Useful life (years) Sprayer Trojector 331,800 $19,200 $ 3.000 $ 3,100 e. On September 1, 2019, the company is paid $9.900 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 4. The company offers a warranty for the services it sells. The expected cost of providing warranty services of the extermination services revenue of $64,575 for 2019. No warranty expense has been recorded for 2019. All costs of servicing warranties in 2019 were properly debited to the Estimated Warranty Liability account 9. The $18,000 long term note is on 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 $10.500, Bug Off uses a perpetual inventory Required: 1. Determine amounts for the following items: a. Correct reconciledy 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 A e. 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 Clability 9. The adjusted 2019 ending balances of the accounts for Interest Expense and Interest Payable. 2. Use the results of part 1 to complete the six-column table by first entering the appropriate adjustments for items 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 4o. Prepare a single-step income statement for year 2019. EE 4b. Prepare a statement of owner's equity (cash withdrawals during 2019 were $16,000) for year 2019 and there were no investments by the owner in the current year. 4c. Prepare a classified balance sheet as at 2019. Complete this question by entering your answers in the Regt Reg 2 Req3 Re4 Req 48 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 not round your intermediate calculations.) 1. The adjusted 2010 ending balances of the accounts for Warranty Expense and Estimated Warranty Lab 9. The adjusted 2019 ending balances of the accounts for Interest Expense and Interest Payable Reconciled balance Omitted check Necessary adjustment Depreciation expense Sprayer Injector Depreciation expense Services nces Revenue Unearned Services Revenue Ending balances after adjustme Warranty Expense Estimated Warranty Liability Ending balances after adjust Interest Expense Interest Payable Ending balances after adjustment Reg 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 b requires two adjustments. (Do not round your intermediate calculations.) Adjusted Trial Balance Debit Credit Account Title Cash Accounts receivable Allowance for doubtful accounts Merchandise inventory Trucks Accum deprec-Trucks Equipment Accum deprec-Equip Accounts payable Estim warranty liability Unearned services rev Interest payable BUG-OFF EXTERMINATORS December 31, 2019 Unadjusted Trial Balance Adjustments Debit Credit Debit Credit $ 18,200 4.600 $ 840 10.500 38,000 op 51,000 17 000 5,300 1,700 ol P S payou 1,700 0 18,000 73,100 Skipped 71,175 884 74,651 48, 100 References Estim warranty liability Unearned services rev Interest payable Long-term notes payable D. Buggs, Capital D. Buggs. Withdrawals Extermination services revenue Interest revenue Sales Cost of goods sold Deprec. expense-Trucks Deprec expense-Equip Wages expense Interest expense Rent expense Bad debts expense Miscellaneous expense Repairs expense Utilities expense Warranty expense Totals 41,000 15,000 11.000 8.000 262650S 0S 0S 0S 0 to search o e A Prepare journal entries to record the adjustments entered on the six-column table. Assume Bug-Off's adjustel Inventory matches the year-end physical count. (If no entry is required for a particular transaction, select "No the first account field. Do not round your intermediate calculations.) View transaction list Journal entry worksheet intermediate calculations.) BUG-OFF EXTERMINATORS Balance Sheet December 31, 2019 Assets Current assets: nces Total current assets Plant assets Total plant assets Total assets Liabilities Current liabilities Prey 1 of 1 !!! Nex 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 Cash Accounts receivable Allowance for doubtful accounts Merchandise inventory Unadjusted Trial Balang $ 18,200 4,600 10,500 Accun depreciation Trucks Equipment Accum. depreciation Equipment Accounts payable Estimated warranty liability Unearned services revenue Interest payable Long-ters notes payable D. US, Capital D. BERS, withdrawals Extersination 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 Rent expenso Bad debts expense Miscellaneous expense Repairs expense Utilities expense Warranty expense Totals 22 The following information in a through h applies to the compa the end of the current year. a. The bank reconciliation as of December 31, 2019, includes the following fac 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) b. An examination of customers' accounts shows that accounts totaling $685 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 $730 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) $10.00 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. Original cost Expected salvage value Useful life (years) Sprayer Trojector 331,800 $19,200 $ 3.000 $ 3,100 e. On September 1, 2019, the company is paid $9.900 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 4. The company offers a warranty for the services it sells. The expected cost of providing warranty services of the extermination services revenue of $64,575 for 2019. No warranty expense has been recorded for 2019. All costs of servicing warranties in 2019 were properly debited to the Estimated Warranty Liability account 9. The $18,000 long term note is on 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 $10.500, Bug Off uses a perpetual inventory Required: 1. Determine amounts for the following items: a. Correct reconciledy 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 A e. 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 Clability 9. The adjusted 2019 ending balances of the accounts for Interest Expense and Interest Payable. 2. Use the results of part 1 to complete the six-column table by first entering the appropriate adjustments for items 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 4o. Prepare a single-step income statement for year 2019. EE 4b. Prepare a statement of owner's equity (cash withdrawals during 2019 were $16,000) for year 2019 and there were no investments by the owner in the current year. 4c. Prepare a classified balance sheet as at 2019. Complete this question by entering your answers in the Regt Reg 2 Req3 Re4 Req 48 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 not round your intermediate calculations.) 1. The adjusted 2010 ending balances of the accounts for Warranty Expense and Estimated Warranty Lab 9. The adjusted 2019 ending balances of the accounts for Interest Expense and Interest Payable Reconciled balance Omitted check Necessary adjustment Depreciation expense Sprayer Injector Depreciation expense Services nces Revenue Unearned Services Revenue Ending balances after adjustme Warranty Expense Estimated Warranty Liability Ending balances after adjust Interest Expense Interest Payable Ending balances after adjustment Reg 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 b requires two adjustments. (Do not round your intermediate calculations.) Adjusted Trial Balance Debit Credit Account Title Cash Accounts receivable Allowance for doubtful accounts Merchandise inventory Trucks Accum deprec-Trucks Equipment Accum deprec-Equip Accounts payable Estim warranty liability Unearned services rev Interest payable BUG-OFF EXTERMINATORS December 31, 2019 Unadjusted Trial Balance Adjustments Debit Credit Debit Credit $ 18,200 4.600 $ 840 10.500 38,000 op 51,000 17 000 5,300 1,700 ol P S payou 1,700 0 18,000 73,100 Skipped 71,175 884 74,651 48, 100 References Estim warranty liability Unearned services rev Interest payable Long-term notes payable D. Buggs, Capital D. Buggs. Withdrawals Extermination services revenue Interest revenue Sales Cost of goods sold Deprec. expense-Trucks Deprec expense-Equip Wages expense Interest expense Rent expense Bad debts expense Miscellaneous expense Repairs expense Utilities expense Warranty expense Totals 41,000 15,000 11.000 8.000 262650S 0S 0S 0S 0 to search o e A Prepare journal entries to record the adjustments entered on the six-column table. Assume Bug-Off's adjustel Inventory matches the year-end physical count. (If no entry is required for a particular transaction, select "No the first account field. Do not round your intermediate calculations.) View transaction list Journal entry worksheet intermediate calculations.) BUG-OFF EXTERMINATORS Balance Sheet December 31, 2019 Assets Current assets: nces Total current assets Plant assets Total plant assets Total assets Liabilities Current liabilities Prey 1 of 1 !!! Nex