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, 2021. December 31, 2021 Unadjusted Trial Balance Debit Credit Equipment Cash Accounts receivable Merchandise inventory Trucks Accumulated depreciation-Trucks Accounts payable Estimated warranty liability $ 21,000 51,800 Allowance for doubtful accounts $ 868 17,700 52,000 0 57,000 Accumulated depreciation-Equipment 15,600 6,000 2,400 Unearned services revenue 0 Interest payable Long-term notes payable 35,000 D. Buggs, Capital 105,300 D. Buggs, Withdrawals 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 0 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 $ 395,906 $ 395,906 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, 2021, 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) $ 17,100 21,000 2,800 3,450 92 35 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 $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 $800. c. A truck is purchased and placed in service on January 1, 2021. Its cost is being depreciated with the straight-line method using the following facts and estimates. Original cost $ 52,000 Expected salvage value $ 16,000 Useful life (years) 4 d. Two items of equipment (a sprayer and an injector) were purchased and put into service in early January 2019. They are being depreciated with the straight-line method using these facts and estimates. Sprayer Injector Original cost $ 31,000 $ 26,000 Expected salvage value $ 3,000 Useful life (years) 8 $ 4,500 5 e. On September 1, 2021, 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. f. 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 2021. No warranty expense has been recorded for 2021. All costs of servicing warranties in 2021 were properly debited to the Estimated Warranty Liability account. g. The $35,000 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, 2021. h. The ending inventory of merchandise is counted and determined to have a cost of $15,700. 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 2021. d. Depreciation expense for the two items of equipment used during year 2021. e. The adjusted 2021 ending balances of the Extermination Services Revenue and Unearned Services Revenue accounts. f. The adjusted 2021 ending balances of the Warranty Expense and the Estimated Warranty Liability accounts. g. The adjusted 2021 ending balances of the Interest Expense and the Interest Payable accounts. 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. 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 2021. 4b. Prepare the statement of owner's equity (cash withdrawals during 2021 were $30,000 and owner investments were $0) for 202 4c. Prepare a classified balance sheet for December 31, 2021. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 4B Req 4C 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 2021. d. Depreciation expense for the two items of equipment used during year 2021. e. The adjusted 2021 ending balances of the Extermination Services Revenue and Unearned Services Revenue accounts. (Do not round your intermediate calculations.) f. The adjusted 2021 ending balances of the Warranty Expense and the Estimated Warranty Liability accounts. g. The adjusted 2021 ending balances of the Interest Expense and the Interest Payable accounts. Show less a. Reconciled balance of cash a. Omitted check b. Necessary adjustment c. Depreciation expense d. Depreciation expense Sprayer Injector Extermination Unearned Services Services Revenue Revenue e. Ending balances after adjustment Estimated Warranty Warranty Expense Liability f. Ending balances after adjustment Interest Interest Expense Payable g. Ending balances after adjustment 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 A c. Depreciation expense for the truck used during year 2021. d. Depreciation expense for the two items of equipment used during year 2021. e. The adjusted 2021 ending balances of the Extermination Services Revenue and Unearne not round your intermediate calculations.) f. The adjusted 2021 ending balances of the Warranty Expense and the Estimated Warrant g. The adjusted 2021 ending balances of the Interest Expense and the Interest Payable acc a. Reconciled balance of cash a. Omitted check b. Necessary adjustment c. Depreciation expense Sprayer Injector d. Depreciation expense Extermination Unearned Services Services Revenue Revenue e. Ending balances after adjustment Estimated Warranty Warranty Expense Liability f. Ending balances after adjustment Interest Interest Expense Payable g. Ending balances after adjustment Account Title BUG-OFF EXTERMINATORS December 31, 2021 Unadjusted Trial Balance Adjustments Debit Credit Debit Cash $ 21,000 Accounts receivable 51,800 Allowance for doubtful accounts $ 868 Merchandise inventory 17,700 Trucks 52,000 Accumulated depreciation-Trucks 0 Equipment 57,000 Accumulated depreciation-Equipment 15,600 Accounts payable 6,000 Estimated warranty liability 2,400 Unearned services revenue 0 Interest payable 0 Long-term notes payable 35,000 D. Buggs, Capital 105,300 D. Buggs, Withdrawals 30,000 Extermination services revenue 100,000 Interest revenue 912 Sales 129,826 Cost of goods sold 52,300 Depreciation expense-Trucks Depreciation expense-Equipment 0 0 Wages expense Interest expense 55,000 0 Rent expense 29,000 Adjusted Trial Balance Credit Debit Credit Bad debts expense Assessment Tool iFrame www p Repairs expense Utilities expense Warranty expense Totals . 0 1,306 18,000 10,800 0 $ 395,906 $ 395,906 Req 1 Req 2 Req 3 Req 4A Req 4B Req 4C 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 Doubtf c. Depreciation expense for the truck used during year 2021. d. Depreciation expense for the two items of equipment used during year 2021. e. The adjusted 2021 ending balances of the Extermination Services Revenue and Unea not round your intermediate calculations.) f. The adjusted 2021 ending balances of the Warranty Expense and the Estimated War g. The adjusted 2021 ending balances of the Interest Expense and the Interest Payable a. Reconciled balance of cash a. Omitted check b. Necessary adjustment c. Depreciation expense Sprayer Injector d. Depreciation expense Extermination Unearned Services Services Revenue Revenue e. Ending balances after adjustment Estimated Warranty Warranty Expense Liability f. Ending balances after adjustment Interest Expense Interest Payable g. Ending balances after adjustment Journal entry worksheet 1 2 3 4 5 6 7 8 Record the adjustment to the Cash account. Note: Enter debits before credits. Transaction (a) General Journal Debit Credit View general journal Record entry Clear entry Journal entry worksheet 1 2 3 4 5 6 78 > Record the write off of uncollectible accounts. Note: Enter debits before credits. Transaction (b1) General Journal Debit Credit View general journal Record entry Clear entry Journal entry worksheet > 1 2 3 4 5 6 7 8 > Record the adjustment for bad debts. Note: Enter debits before credits. Transaction (b2) General Journal Debit Credit View general journal Record entry Clear entry Journal entry worksheet 1 2 3 4 5 Record depreciation on the equipment. Note: Enter debits before credits. Transaction (d) 6 7 8 > General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 4 5 Recorded the adjustment for unearned revenues. Note: Enter debits before credits. Transaction (e) 7 8 > General Journal Debit Credit View general journal Record entry Clear entry Journal entry worksheet 1 2 3 4 5 6 7 8 > Record the estimated warranty expense. Note: Enter debits before credits. Transaction (f) General Journal Debit Credit View general journal Record entry Clear entry 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 < 1 2 3 4 567 8 Record the adjustment for interest. Note: Enter debits before credits. Transaction (g) General Journal Debit Credit Record entry Clear entry View general journal < Req 2 Req 4A > >