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 Cash Accounts receivable Allowance for doubtful accounts Merchandise inventory Trucks Accumulated depreciation-Trucks $ 17,200 3,870 $ 830 12,000 33,000 0 Equipment 45,600 Accumulated depreciation-Equipment 12,370 Accounts payable 5,050 Estimated warranty liability 1,450 Unearned services revenue 0 Interest payable 0 Long-term notes payable 16,000 Common stock 22,000 Retained earnings 39,600 Dividends 11,000 Extermination services revenue 62,000 Interest revenue 874 Sales (of merchandise) 71,826 Cost of goods sold 46,600 Rent expense Depreciation expense-Trucks Depreciation expense-Equipment Wages expense Interest expense Bad debts expense Miscellaneous expense Repairs expense 0 0 36,000 0 10,000 0 1,230 8,500 Utilities expense Warranty expense 7,000 0 $ 232,000 $ 232,000 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, 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) $ 15,200 17,200 1,850 2,500 54 16 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 $680 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 $705. 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 $ 33,000 Expected salvage value $ 8,400 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 $ 27,200 $ 18,400 Expected salvage value $ 3,000 $ 2,600 Useful life (years) 8 5 e. On September 1, 2021, the company is paid $3,900 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. f. The company offers a warranty for the services it sells. The expected cost of providing warranty service is 2.50% of the extermination services revenue of $59,400 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 $16,000 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 $11,900. 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 retained earnings (cash dividends during 2021 were $11,000), for 2021. 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. a. Reconciled balance of cash a. Omitted check b. Necessary adjustment c. Depreciation expense Sprayer Injector d. Depreciation expense Extermination Unearned Services Revenue Services Revenue e. Ending balances after adjustment Estimated Warranty Expense Warranty Liability f. Ending balances after adjustment Interest Expense Interest Payable g. Ending balances after adjustment < Req 1 Req 2 > Show less 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 retained earnings (cash dividends during 2021 were $11,000), for 2021. 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 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.) Account Title BUG-OFF EXTERMINATORS December 31, 2021 Unadjusted Trial Balance Adjustments Adjusted Trial Balance Credit Debit Credit Debit Credit Debit Cash $ 17,200 Accounts receivable 3,870 Allowance for doubtful accounts $ 830 Merchandise inventory 12,000 Trucks 33,000 Accumulated depreciation-Trucks 0 Equipment 45,600 Accumulated depreciation-Equipment 12,370 Accounts payable 5,050 Estimated warranty liability 1,450 Uneamed services revenue 0 Interest payable 0 Long-term notes payable 16,000 Common stock 22,000 Retained earnings 39.600 Dividends 11,000 Extermination services revenue 62,000 Interest revenue 874 Sales 71,826 Cost of goods sold 46,600 Depreciation expense-Trucks 0 Depreciation expense-Equipment 0 Wages expense 36,000 Interest expense 0 Rent expense 10,000 Bad debts expense 0 Miscellaneous expense 1,230 Repairs expense 8,500 Utilities expense 7,000 Warranty expense 0 Totals $ 232,000 $ 232,000 < Req 1 Req 3 > 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 retained earnings (cash dividends during 2021 were $11,000), for 2021. 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 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 5 6 7 8 > Record the adjustment to the Cash account. Note: Enter debits before credits. Transaction (a) General Journal Debit Credit Record entry Clear entry View general journal 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 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 item 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 Merchandise Inventory matches the year-end physical count. 4a. Prepare a single-step income statement for 2021. 4b. Prepare the statement of retained earnings (cash dividends during 2021 were $11,000), for 2021. 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 Prepare a single-step income statement for 2021. BUG-OFF EXTERMINATORS Income Statement For Year Ended December 31, 2021 Revenues Total revenues Expenses Total expenses < Req 3 Req 4B > 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 retained earnings (cash dividends during 2021 were $11,000), for 2021. 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 Prepare the statement of retained earnings (cash dividends during 2021 were $11,000), for 2021. BUG-OFF EXTERMINATORS Statement of Retained Earnings For Year Ended December 31, 2021 < Req 4A Req 4C > 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 retained earnings (cash dividends during 2021 were $11,000), for 2021. 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 48 Req 4C Prepare a classified balance sheet for December 31, 2021. (Amounts to be deducted should be indicated with a minus sign. Do not round your intermediate calculations.) Current assets: Total current assets Plant assets: Total plant assets Total assets Current liabilities: Total current liabilities Long-term liabilities: Total liabilities Total equity Total liabilities and equity BUG-OFF EXTERMINATORS Balance Sheet December 31, 2021 Assets Liabilities Equity < Req 4B Req 4C >