Bug-Off Exterminators provides pest control services and sells extermination products manufactured by other companies. The following six-column table contains the company's unadjusted trial balance as of December 31, 2018 Cash BUG-OFF EXTERMINATORS December 31, 2018 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 Unadjusted Trial Balance $ 18,200 3,800 $ 822 12,100 30,700 52,000 11,200 4,000 1,300 0 14,600 Common stock 11,000 Retained earnings 49,200 Dividends 12,000 Extermination services 56,000 revenue Interest revenue 870 Sales (of merchandise) 79,415 Cost of goods sold 44,200 Depreciation expense-Trucks e Depreciation expense- Equipment Wages expense 33,000 Interest expense Rent expense 7,800 Bad debts expense Miscellaneous expense 1,207 Repairs expense 6,500 Utilities expense 6,900 0 $228,407 $228,407 Warranty expense Totals 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, 2018, 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) $ 15,100 17,000 1,800 2,450 52 15 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 $679 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 $700. A truck is purchased and placed in service on January 1, 2018. Its cost is being depreciated with the straight-line method using the following facts and estimates Interest expense Rent expense 7,800 Bad debts expense 0 Miscellaneous expense 1,207 Repairs expense 6,500 Utilities expense 6,900 Warranty expense Totals $228,407 $228,407 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, 2018, includes the following facts. Cash balance per bank Cash balance per books Outstanding checks i $ 15,100 17,000 1,800 Deposit in transit 2,450 Interest earned (on bank account) 52 15 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 $679 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 $700. c. A truck is purchased and placed in service on January 1, 2018. Its cost is being depreciated with the straight-line method using the following facts and estimates. Original cost $32,000 Expected salvage value Useful Life (years) 8,000 d. Two items of equipment (a sprayer and an injector) were purchased and put into service in early January 2016. They are being depreciated with the straight-line method using these facts and estimates Sprayer Injector Original cost $27,000 $18,000 Expected salvage value Useful Life (years) 3,000 2,500 8 5 e. On August 1, 2018, the company is paid $3,840 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 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 $53,760 for 2018. No warranty expense has been recorded for 2018. All costs of servicing warranties in 2018 were properly debited to the Estimated Warranty Liability account g. The $15,000 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, 2018. h. The ending inventory of merchandise is counted and determined to have a cost of $11,700. Bug-Off uses a perpetual inventory system Required: 1. Use the preceding information to determine amounts for the following items Way to EUR DIE LU 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 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 $53,760 for 2018. No warranty expense has been recorded for 2018. All costs of servicing warranties in 2018 were properly debited to the Estimated Warranty Liability account g. The $15,000 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, 2018. h. The ending inventory of merchandise is counted and determined to have a cost of $11,700. Bug-Off uses a perpetual inventory system Required: 1. Use the preceding information to 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 2018. d. Depreciation expense for the two items of equipment used during year 2018. e. The adjusted 2018 ending balances of the Extermination Services Revenue and Unearned Services Revenue accounts. f. The adjusted 2018 ending balances of the Warranty Expense and the Estimated Warranty Liability accounts. g. The adjusted 2018 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 4n the six-column table. Assume Bug-Off's adjusted balance for Merchandise Inventory matches the year-end physical count 4-a. Prepare a single-step income statement for year 2018 4-b. Prepare a statement of retained earnings (cash dividends during 2018 were $10,000) for year 2018 4-c. Prepare a classified balance sheet as at 2018 Req 1 Req 2 Req 3 Req 4A Req 48 Req 4C 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 2018. d. Depreciation expense for the two items of equipment used during year 2018. e. The adjusted 2018 ending balances of the Extermination Services Revenue and Unearned Services Revenue accounts. f. The adjusted 2018 ending balances of the Warranty Expense and the Estimated Warranty Liability accounts, g. The adjusted 2018 ending balances of the Interest Expense and the Interest Payable accounts. (Round amounts to nearest whole dollar.) a. Reconciled balance Omitted check b. Necessary adjustment c. Depreciation expense d. Depreciation-Sprayer Depreciation-Injector e. Services revenue Uneamed services revenue f Warranty expense Estimated warranty liability ginterest expense Interest payable Req 2 > Show less A Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 4B Req 4C 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.) BUG-OFF EXTERMINATORS December 31, 2018 Show less A Unadjusted Adjustments Trial Balance Adjusted Trial Balance Account Title Debit Credit Debit Credit Debit Credit $ Cash 18,200 Accounts receivable 3,800 Allowance for doubtful $ 822 accounts Merchandise inventory 12,100 Trucks Accum. deprec Trucks 30,700 0 Equipment 52,000 Accum. deprec.-Equip 11,200 Accounts payable 4,000 Estim. warranty liability 1,300 Unearned services rev 0 Interest payable Long-term notes 14,600 payable Common stock 11,000 Retained earnings 49,200 Dividends 12,000 Extermination services 56,000 revenue Interest revenue Sales 870 79,415 Cost of goods sold 44,200 Deprec. expense- 8 Trucks Deprec. expense- Equip 0 Wages expense 33,000 Interest expense 0 Rent expense 7,800 Bad debts expense Miscellaneous 1,207 expense Repairs expense 6,500 Utilities expense 6,900 Warranty expense S $ Totals 228,407 228,407 Required: 1. Use the preceding information to 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 2018. d. Depreciation expense for the two items of equipment used during year 2018. e. The adjusted 2018 ending balances of the Extermination Services Revenue and Unearned Services Revenue accounts. f. The adjusted 2018 ending balances of the Warranty Expense and the Estimated Warranty Liability accounts g. The adjusted 2018 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 4n the six-column table. Assume Bug-Off's adjusted balance for Merchandise Inventory matches the year-end physical count 4-a. Prepare a single-step income statement for year 2018. 4-b. Prepare a statement of retained earnings (cash dividends during 2018 were $10,000) for year 2018. 4-c. Prepare a classified balance sheet as at 2018 Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 48 Req 4C Prepare a single-step income statement for year 2018. BUG-OFF EXTERMINATORS Income Statement For Year Ended December 31, 2018 Revenues Total revenues Expenses Interest expense Total expenses The note was signed with First National Bank on December 31, 2018. h. The ending inventory of merchandise is counted and determined to have a cost of $11,700. Bug-Off uses inventory system. Required: 1. Use the preceding information to 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 2018. d. Depreciation expense for the two items of equipment used during year 2018. e. The adjusted 2018 ending balances of the Extermination Services Revenue and Unearned Services Revenu accounts. f. The adjusted 2018 ending balances of the Warranty Expense and the Estimated Warranty Liability accounts. g. The adjusted 2018 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 ite 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 4n the six-column table. Assume Bug-Off's adjuste balance for Merchandise Inventory matches the year-end physical count. 4-a. Prepare a single-step income statement for year 2018. 4-b. Prepare a statement of retained earnings (cash dividends during 2018 were $10,000) for year 2018. 4-c. Prepare a classified balance sheet as at 2018. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 4B Req 4C Prepare a statement of retained earnings (cash dividends during 2018 were $10,000) for year 2018. BUG-OFF EXTERMINATORS Statement of Retained Earnings For Year Ended December 31, 2018 Retained earnings, December 31, 2017 Retained earnings, December 31, 2018 use the results or part 1 10 complete the six-column wore by ist entering the appropriate adjustments for mess 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 4n the six-column table. Assume Bug-Off's adjusted balance for Merchandise Inventory matches the year-end physical count. 4-a. Prepare a single-step income statement for year 2018. 4-b. Prepare a statement of retained earnings (cash dividends during 2018 were $10,000) for year 2018. 4-c. Prepare a classified balance sheet as at 2018. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 4B Req 4C Prepare a classified balance sheet as at 2018. (Negative amounts should be indicated by a minus sign. Do not round your intermediate calculations.) BUG-OFF EXTERMINATORS Balance Sheet December 31, 2018 Assets Current assets: Total current assets Plant assets: Total plant assets Total assets Liabilities Current abilities: Total current liabilities Long-term liabilities: Total liabilities Equity Total liabilities and equity