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. BUG-OFF EXTERMINATORS December 31, 2018 Unadjusted Trial Balance Cash $ 17,900 Accounts receivable Merchandise inventory Trucks Accum. depreciation-Trucks Equipment 4,500 Allowance for doubtful accounts $ 801 12,500 31,500 61,000 t Accum. depreciation-Equipment 12,800 Accounts payable 4,200 Estimated warranty liability 1,300 Unearned services revenue 0 nces Interest payable 0 Long-term notes payable 15,000 Common stock 10,000 Retained earnings 49,000 Dividends 11,000 Extermination services revenue 67,000 Interest revenue 872 Sales (of merchandise) 84,740 Cost of goods sold 46,000 Depreciation expense-Trucks 0 Depreciation expense-Equipment i 0 Wages expense 36,000 Interest expense 0 Rent expense 8,500 Bad debts expense 0 Miscellaneous expense 1,213 Repairs expense 8,900 Utilities expense 6,700 Warranty expense Totals $245,713 $245,713 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.) 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 Expected salvage value Useful life (years) $32,000 8,000 4 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. Original cost Expected salvage value Useful life (years) Sprayer Injector $27,000 $18,000 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 $64,760 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. 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 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 Unearned services revenue f. Warranty expense Estimated warranty liability g. Interest expense Interest payable Show less A BUG-OFF EXTERMINATORS December 31, 2018 Adjusted Trial Balance Unadjusted Adjustments Trial Balance Account Title Debit Credit Debit Credit Debit Cash $ 17,900 Accounts receivable 4,500 Allowance for doubtful $ 801 accounts Merchandise inventory 12,500 Trucks 31,500 Accum. deprec.-Trucks 0 Equipment 61,000 Accum. deprec.-Equip 12,800 Accounts payable Estim. warranty liability 4,200 1,300 Unearned services rev Interest payable Long-term notes payable Common stock Retained earnings Dividends 0 0 15,000 10,000 49,000 11,000 Extermination services revenue 67,000 Interest revenue 872 Sales 84,740 Cost of goods sold 46,000 Deprec. expense-Trucks 0 Deprec. expense-Equip 0 Wages expense 36,000 Interest expense 0 Rent expense 8,500 Bad debts expense 0 Miscellaneous expense 1,213 Repairs expense 8,900 Utilities expense 6,700 Warranty expense 0 Totals $245,713 $245,713 Credit Req 1 Req 2 Req 3 Req 4A Req 4B Req 4C Prepare journal entries to record the adjustments entered in the six-column table. Assume Bug-Off's adj Merchandise Inventory matches the year-end physical count. (If no entry is required for a particular trans entry required" in the first account field. Do not round your intermediate calculations.) View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 Record the adjustment to the Cash account. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 4B Req 4C Prepare journal entries to record the adjustments entered in the six-column table. Assume Bug-Off's adju Merchandise Inventory matches the year-end physical count. (If no entry is required for a particular trans entry required" in the first account field. Do not round your intermediate calculations.) View transaction list Journal entry worksheet 2 3 5 6 7 8 Record the write off of uncollectible accounts. Note: Enter debits before credits. Transaction (b1) General Journal Debit Credit Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 48 Req 4C Prepare journal entries to record the adjustments entered in 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 5 6 7 8 Record the adjustment for bad debts. Note: Enter debits before credits. Transaction (b2) General Journal Debit Credit Record entry Clear entry View general journal nces wwwwww Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 4B Req 4C Prepare journal entries to record the adjustments entered in the six-column table. Assume Bug-Off's Merchandise Inventory matches the year-end physical count. (If no entry is required for a particular tr entry required" in the first account field. Do not round your intermediate calculations.) View transaction list Journal entry worksheet 1 Record depreciation on the truck. Note: Enter debits before credits. Transaction (c) 5 6 7 8 General Journal Debit Credit Record entry Clear entry Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 48 Req 4C Prepare journal entries to record the adjustments entered in the six-column table. Assume Bug-O Merchandise Inventory matches the year-end physical count. (If no entry is required for a particuli entry required" in the first account field. Do not round your intermediate calculations.) View transaction list Journal entry worksheet < 1 2 3 4 6 7 Record depreciation on the equipment. Note: Enter debits before credits. Transaction (d) General Journal Debit Credit Record entry Clear entry View general journal Req 1 Req 2 Req 3 Req 4A Req 4B Req 4C Prepare journal entries to record the adjustments entered in the six-column table. Assume Bug-Off's adjuste Merchandise Inventory matches the year-end physical count. (If no entry is required for a particular transacti entry required" in the first account field. Do not round your intermediate calculations.) View transaction list Journal entry worksheet < 1 2 3 5 6m 8 Recorded the adjustment for unearned revenues. Note: Enter debits before credits. Transaction (e) General Journal Debit Credit Record entry Clear entry View general journal Req 2 Req 4A > ces Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 4B Req 4C Prepare journal entries to record the adjustments entered in the six-column table. Assume Bug-Off's adjusted b Merchandise Inventory matches the year-end physical count. (If no entry is required for a particular transaction, entry required" in the first account field. Do not round your intermediate calculations.) View transaction list Journal entry worksheet < 1 2 3 4 5 6 8 Record the estimated warranty expense. Note: Enter debits before credits. Transaction (f) General Journal Debit Credit Record entry Clear entry View general journal ook rint Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 4B Req 4C Prepare journal entries to record the adjustments entered in the six-column table. Assume Bug-Off's adjusted ball Merchandise Inventory matches the year-end physical count. (If no entry is required for a particular transaction, s entry required" in the first account field. Do not round your intermediate calculations.) View transaction list rences Journal entry worksheet < 1 2 3 4 5 6 7 8 Record the adjustment for interest. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal < Req 2 Req 4A > - eBook 4-0. Prepare a Statement or retained earnings (cash dividerius during 2010 were $10,000) for yea 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 single-step income statement for year 2018. BUG-OFF EXTERMINATORS Income Statement For Year Ended December 31, 2018 Print Revenues ferences Total revenues Expenses Interest expense Total expenses 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 ga 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 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 $4 BUG-OFF EXTERMINATORS Balance Sheet December 31, 2018 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