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 Trucks Accum. depreciation-Trucks Equipment Accum. depreciation-Equipment Accounts payable Estimated warranty liability Unearned services revenue Interest payable Long-term notes payable. Common stock Retained earnings Dividends Extermination services revenue FALE Interest revenue Sales (of merchandise) Cost Cost of goods sold Deko Depreciation expense-Trucks Depreciation expense-Equipment Wages expense Interest expense Rent expense Bad debts expense Miscellaneous expense Repairs expense Utilities expense Warranty expense Totals Unadjusted Trial Balance $ 19,400 5,200 15,300 44,000 78,600 22,000 49,900 0 0 47,000 $ 852 0 21,800 5,600 2,000 0 0 27,000 22,000 64,900 84,000 896 97,826 21,000 0 1,274 14,000 9,200 $326,874 $326,874 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, 2019, 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) 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.) $16,300 19,400 2,400 3,050 76 27 b. An examination of customers' accounts shows that accounts totaling $691 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 $760. 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) $38,000 $12,800 4 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) $36,600 Sprayer Injector $20,400 $ 3,700 5 $ 3,000 8 e. On September 1, 2019, the company is paid $17,100 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 $72,600 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. g. The $21,000 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, 2019. h. The ending inventory of merchandise is counted and determined to have a cost of $15,300. 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 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 Revenue accounts. f. The adjusted 2019 ending balances of the accounts for Warranty Expense and Estimated Warranty Liability. g. 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 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 year 2019. 4b. Prepare the statement of retained earnings (cash dividends during 2019 were $22,000) for 2019. 4c. Prepare a classified balance sheet as at 2019. 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 Revenue accounts. (Do not round your intermediate calculations.) f. The adjusted 2019 ending balances of the accounts for Warranty Expense and Estimated Warranty Liability. g. The adjusted 2019 ending balances of the accounts for Interest Expense and Interest Payable. a. b. C. d. e. f. g. Reconciled balance Omitted check Necessary adjustment Depreciation expense Depreciation expense Ending balances after adjustment Ending balances after adjustment Ending balances after adjustment Sprayer Services Revenue Warranty Expense Interest Expense Injector Unearned Services Revenue Estimated Warranty Liability Interest Payable Show less A 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 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 Long-term notes payable Common stock Retained earnings Dividends Extermination services revenue Interest revenue Sales Cost of goods sold BUG-OFF EXTERMINATORS December 31, 2019 Unadjusted Trial Balance Debit $ 19,400 5,200 15,300 44,000 78,600 22,000 49,900 Credit $ 852 0 21,800 5,600 2,000 0 0 27,000 22,000 64,900 84,000 896 97,826 Adjustments Debit Credit Adjusted Trial Balance Debit Credit Deprec. expense-Trucks Deprec. expense-Equip Wages expense Interest expense Rent expense Bad debts expense Miscellaneous expense Repairs expense Utilities expense Warranty expense Totals 0 0 47,000 0 21,000 0 1,274 14,000 9,200 0 $ 326,874 $ 326,874 < Req 1 Req 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. (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 Transaction (a) 3 Note: Enter debits before credits. Record the adjustment to the Cash account. Record entry 4 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > 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 Note: Enter debits before credits. Transaction (b1) Record entry 4 Record the write off of uncollectible accounts. 5 General Journal 6 Clear entry 7 8 Debit Credit View general journal > 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 Transaction (b2) 3 Note: Enter debits before credits. Record the adjustment for bad debts. Record entry 4 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > 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 Record depreciation on the truck. Note: Enter debits before credits. Transaction (c) Record entry 4 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > 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 Note: Enter debits before credits. Record depreciation on the equipment. Transaction (d) 4 Record entry 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > 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 Note: Enter debits before credits. Transaction (e) Record entry 4 Recorded the adjustment for unearned revenues. 5 General Journal 6 Clear entry 7 8 Debit Credit View general journal > 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 Note: Enter debits before credits. Transaction (f) Record the estimated warranty expense. Record entry 4 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > 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 Record the adjustment for interest. Note: Enter debits before credits. Transaction (g) 4 Record entry 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > Prepare a single-step income statement for year 2019. Revenues Total revenues Expenses Total expenses BUG-OFF EXTERMINATORS Income Statement For Year Ended December 31, 2019 Prepare the statement of retained earnings (cash dividends during 2019 were $22,000) for 2019. BUG-OFF EXTERMINATORS Statement of Retained Earnings For Year Ended December 31, 2019 ************** Prepare a intermediate calculations.) Current assets: Total current assets Plant assets: ***************** balance sheet as at 2019. (Negative amounts should be indicated by a minus sign. Do not round your Total plant assets Total assets Assets BUG-OFF EXTERMINATORS Balance Sheet December 31, 2019 ************ Liabilities Current liabilities: Total current liabilities Long-term liabilities: Total liabilities Equity Total liabilities and equity 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 Trucks Accum. depreciation-Trucks Equipment Accum. depreciation-Equipment Accounts payable Estimated warranty liability Unearned services revenue Interest payable Long-term notes payable. Common stock Retained earnings Dividends Extermination services revenue FALE Interest revenue Sales (of merchandise) Cost Cost of goods sold Deko Depreciation expense-Trucks Depreciation expense-Equipment Wages expense Interest expense Rent expense Bad debts expense Miscellaneous expense Repairs expense Utilities expense Warranty expense Totals Unadjusted Trial Balance $ 19,400 5,200 15,300 44,000 78,600 22,000 49,900 0 0 47,000 $ 852 0 21,800 5,600 2,000 0 0 27,000 22,000 64,900 84,000 896 97,826 21,000 0 1,274 14,000 9,200 $326,874 $326,874 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, 2019, 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) 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.) $16,300 19,400 2,400 3,050 76 27 b. An examination of customers' accounts shows that accounts totaling $691 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 $760. 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) $38,000 $12,800 4 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) $36,600 Sprayer Injector $20,400 $ 3,700 5 $ 3,000 8 e. On September 1, 2019, the company is paid $17,100 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 $72,600 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. g. The $21,000 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, 2019. h. The ending inventory of merchandise is counted and determined to have a cost of $15,300. 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 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 Revenue accounts. f. The adjusted 2019 ending balances of the accounts for Warranty Expense and Estimated Warranty Liability. g. 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 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 year 2019. 4b. Prepare the statement of retained earnings (cash dividends during 2019 were $22,000) for 2019. 4c. Prepare a classified balance sheet as at 2019. 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 Revenue accounts. (Do not round your intermediate calculations.) f. The adjusted 2019 ending balances of the accounts for Warranty Expense and Estimated Warranty Liability. g. The adjusted 2019 ending balances of the accounts for Interest Expense and Interest Payable. a. b. C. d. e. f. g. Reconciled balance Omitted check Necessary adjustment Depreciation expense Depreciation expense Ending balances after adjustment Ending balances after adjustment Ending balances after adjustment Sprayer Services Revenue Warranty Expense Interest Expense Injector Unearned Services Revenue Estimated Warranty Liability Interest Payable Show less A 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 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 Long-term notes payable Common stock Retained earnings Dividends Extermination services revenue Interest revenue Sales Cost of goods sold BUG-OFF EXTERMINATORS December 31, 2019 Unadjusted Trial Balance Debit $ 19,400 5,200 15,300 44,000 78,600 22,000 49,900 Credit $ 852 0 21,800 5,600 2,000 0 0 27,000 22,000 64,900 84,000 896 97,826 Adjustments Debit Credit Adjusted Trial Balance Debit Credit Deprec. expense-Trucks Deprec. expense-Equip Wages expense Interest expense Rent expense Bad debts expense Miscellaneous expense Repairs expense Utilities expense Warranty expense Totals 0 0 47,000 0 21,000 0 1,274 14,000 9,200 0 $ 326,874 $ 326,874 < Req 1 Req 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. (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 Transaction (a) 3 Note: Enter debits before credits. Record the adjustment to the Cash account. Record entry 4 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > 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 Note: Enter debits before credits. Transaction (b1) Record entry 4 Record the write off of uncollectible accounts. 5 General Journal 6 Clear entry 7 8 Debit Credit View general journal > 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 Transaction (b2) 3 Note: Enter debits before credits. Record the adjustment for bad debts. Record entry 4 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > 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 Record depreciation on the truck. Note: Enter debits before credits. Transaction (c) Record entry 4 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > 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 Note: Enter debits before credits. Record depreciation on the equipment. Transaction (d) 4 Record entry 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > 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 Note: Enter debits before credits. Transaction (e) Record entry 4 Recorded the adjustment for unearned revenues. 5 General Journal 6 Clear entry 7 8 Debit Credit View general journal > 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 Note: Enter debits before credits. Transaction (f) Record the estimated warranty expense. Record entry 4 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > 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 Record the adjustment for interest. Note: Enter debits before credits. Transaction (g) 4 Record entry 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > Prepare a single-step income statement for year 2019. Revenues Total revenues Expenses Total expenses BUG-OFF EXTERMINATORS Income Statement For Year Ended December 31, 2019 Prepare the statement of retained earnings (cash dividends during 2019 were $22,000) for 2019. BUG-OFF EXTERMINATORS Statement of Retained Earnings For Year Ended December 31, 2019 ************** Prepare a intermediate calculations.) Current assets: Total current assets Plant assets: ***************** balance sheet as at 2019. (Negative amounts should be indicated by a minus sign. Do not round your Total plant assets Total assets Assets BUG-OFF EXTERMINATORS Balance Sheet December 31, 2019 ************ Liabilities Current liabilities: Total current liabilities Long-term liabilities: Total liabilities Equity Total liabilities and equity 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 Trucks Accum. depreciation-Trucks Equipment Accum. depreciation-Equipment Accounts payable Estimated warranty liability Unearned services revenue Interest payable Long-term notes payable. Common stock Retained earnings Dividends Extermination services revenue FALE Interest revenue Sales (of merchandise) Cost Cost of goods sold Deko Depreciation expense-Trucks Depreciation expense-Equipment Wages expense Interest expense Rent expense Bad debts expense Miscellaneous expense Repairs expense Utilities expense Warranty expense Totals Unadjusted Trial Balance $ 19,400 5,200 15,300 44,000 78,600 22,000 49,900 0 0 47,000 $ 852 0 21,800 5,600 2,000 0 0 27,000 22,000 64,900 84,000 896 97,826 21,000 0 1,274 14,000 9,200 $326,874 $326,874 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, 2019, 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) 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.) $16,300 19,400 2,400 3,050 76 27 b. An examination of customers' accounts shows that accounts totaling $691 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 $760. 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) $38,000 $12,800 4 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) $36,600 Sprayer Injector $20,400 $ 3,700 5 $ 3,000 8 e. On September 1, 2019, the company is paid $17,100 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 $72,600 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. g. The $21,000 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, 2019. h. The ending inventory of merchandise is counted and determined to have a cost of $15,300. 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 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 Revenue accounts. f. The adjusted 2019 ending balances of the accounts for Warranty Expense and Estimated Warranty Liability. g. 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 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 year 2019. 4b. Prepare the statement of retained earnings (cash dividends during 2019 were $22,000) for 2019. 4c. Prepare a classified balance sheet as at 2019. 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 Revenue accounts. (Do not round your intermediate calculations.) f. The adjusted 2019 ending balances of the accounts for Warranty Expense and Estimated Warranty Liability. g. The adjusted 2019 ending balances of the accounts for Interest Expense and Interest Payable. a. b. C. d. e. f. g. Reconciled balance Omitted check Necessary adjustment Depreciation expense Depreciation expense Ending balances after adjustment Ending balances after adjustment Ending balances after adjustment Sprayer Services Revenue Warranty Expense Interest Expense Injector Unearned Services Revenue Estimated Warranty Liability Interest Payable Show less A 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 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 Long-term notes payable Common stock Retained earnings Dividends Extermination services revenue Interest revenue Sales Cost of goods sold BUG-OFF EXTERMINATORS December 31, 2019 Unadjusted Trial Balance Debit $ 19,400 5,200 15,300 44,000 78,600 22,000 49,900 Credit $ 852 0 21,800 5,600 2,000 0 0 27,000 22,000 64,900 84,000 896 97,826 Adjustments Debit Credit Adjusted Trial Balance Debit Credit Deprec. expense-Trucks Deprec. expense-Equip Wages expense Interest expense Rent expense Bad debts expense Miscellaneous expense Repairs expense Utilities expense Warranty expense Totals 0 0 47,000 0 21,000 0 1,274 14,000 9,200 0 $ 326,874 $ 326,874 < Req 1 Req 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. (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 Transaction (a) 3 Note: Enter debits before credits. Record the adjustment to the Cash account. Record entry 4 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > 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 Note: Enter debits before credits. Transaction (b1) Record entry 4 Record the write off of uncollectible accounts. 5 General Journal 6 Clear entry 7 8 Debit Credit View general journal > 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 Transaction (b2) 3 Note: Enter debits before credits. Record the adjustment for bad debts. Record entry 4 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > 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 Record depreciation on the truck. Note: Enter debits before credits. Transaction (c) Record entry 4 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > 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 Note: Enter debits before credits. Record depreciation on the equipment. Transaction (d) 4 Record entry 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > 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 Note: Enter debits before credits. Transaction (e) Record entry 4 Recorded the adjustment for unearned revenues. 5 General Journal 6 Clear entry 7 8 Debit Credit View general journal > 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 Note: Enter debits before credits. Transaction (f) Record the estimated warranty expense. Record entry 4 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > 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 Record the adjustment for interest. Note: Enter debits before credits. Transaction (g) 4 Record entry 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > Prepare a single-step income statement for year 2019. Revenues Total revenues Expenses Total expenses BUG-OFF EXTERMINATORS Income Statement For Year Ended December 31, 2019 Prepare the statement of retained earnings (cash dividends during 2019 were $22,000) for 2019. BUG-OFF EXTERMINATORS Statement of Retained Earnings For Year Ended December 31, 2019 ************** Prepare a intermediate calculations.) Current assets: Total current assets Plant assets: ***************** balance sheet as at 2019. (Negative amounts should be indicated by a minus sign. Do not round your Total plant assets Total assets Assets BUG-OFF EXTERMINATORS Balance Sheet December 31, 2019 ************ Liabilities Current liabilities: Total current liabilities Long-term liabilities: Total liabilities Equity Total liabilities and equity 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 Trucks Accum. depreciation-Trucks Equipment Accum. depreciation-Equipment Accounts payable Estimated warranty liability Unearned services revenue Interest payable Long-term notes payable. Common stock Retained earnings Dividends Extermination services revenue FALE Interest revenue Sales (of merchandise) Cost Cost of goods sold Deko Depreciation expense-Trucks Depreciation expense-Equipment Wages expense Interest expense Rent expense Bad debts expense Miscellaneous expense Repairs expense Utilities expense Warranty expense Totals Unadjusted Trial Balance $ 19,400 5,200 15,300 44,000 78,600 22,000 49,900 0 0 47,000 $ 852 0 21,800 5,600 2,000 0 0 27,000 22,000 64,900 84,000 896 97,826 21,000 0 1,274 14,000 9,200 $326,874 $326,874 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, 2019, 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) 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.) $16,300 19,400 2,400 3,050 76 27 b. An examination of customers' accounts shows that accounts totaling $691 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 $760. 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) $38,000 $12,800 4 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) $36,600 Sprayer Injector $20,400 $ 3,700 5 $ 3,000 8 e. On September 1, 2019, the company is paid $17,100 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 $72,600 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. g. The $21,000 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, 2019. h. The ending inventory of merchandise is counted and determined to have a cost of $15,300. 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 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 Revenue accounts. f. The adjusted 2019 ending balances of the accounts for Warranty Expense and Estimated Warranty Liability. g. 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 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 year 2019. 4b. Prepare the statement of retained earnings (cash dividends during 2019 were $22,000) for 2019. 4c. Prepare a classified balance sheet as at 2019. 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 Revenue accounts. (Do not round your intermediate calculations.) f. The adjusted 2019 ending balances of the accounts for Warranty Expense and Estimated Warranty Liability. g. The adjusted 2019 ending balances of the accounts for Interest Expense and Interest Payable. a. b. C. d. e. f. g. Reconciled balance Omitted check Necessary adjustment Depreciation expense Depreciation expense Ending balances after adjustment Ending balances after adjustment Ending balances after adjustment Sprayer Services Revenue Warranty Expense Interest Expense Injector Unearned Services Revenue Estimated Warranty Liability Interest Payable Show less A 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 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 Long-term notes payable Common stock Retained earnings Dividends Extermination services revenue Interest revenue Sales Cost of goods sold BUG-OFF EXTERMINATORS December 31, 2019 Unadjusted Trial Balance Debit $ 19,400 5,200 15,300 44,000 78,600 22,000 49,900 Credit $ 852 0 21,800 5,600 2,000 0 0 27,000 22,000 64,900 84,000 896 97,826 Adjustments Debit Credit Adjusted Trial Balance Debit Credit Deprec. expense-Trucks Deprec. expense-Equip Wages expense Interest expense Rent expense Bad debts expense Miscellaneous expense Repairs expense Utilities expense Warranty expense Totals 0 0 47,000 0 21,000 0 1,274 14,000 9,200 0 $ 326,874 $ 326,874 < Req 1 Req 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. (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 Transaction (a) 3 Note: Enter debits before credits. Record the adjustment to the Cash account. Record entry 4 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > 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 Note: Enter debits before credits. Transaction (b1) Record entry 4 Record the write off of uncollectible accounts. 5 General Journal 6 Clear entry 7 8 Debit Credit View general journal > 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 Transaction (b2) 3 Note: Enter debits before credits. Record the adjustment for bad debts. Record entry 4 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > 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 Record depreciation on the truck. Note: Enter debits before credits. Transaction (c) Record entry 4 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > 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 Note: Enter debits before credits. Record depreciation on the equipment. Transaction (d) 4 Record entry 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > 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 Note: Enter debits before credits. Transaction (e) Record entry 4 Recorded the adjustment for unearned revenues. 5 General Journal 6 Clear entry 7 8 Debit Credit View general journal > 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 Note: Enter debits before credits. Transaction (f) Record the estimated warranty expense. Record entry 4 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > 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 Record the adjustment for interest. Note: Enter debits before credits. Transaction (g) 4 Record entry 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > Prepare a single-step income statement for year 2019. Revenues Total revenues Expenses Total expenses BUG-OFF EXTERMINATORS Income Statement For Year Ended December 31, 2019 Prepare the statement of retained earnings (cash dividends during 2019 were $22,000) for 2019. BUG-OFF EXTERMINATORS Statement of Retained Earnings For Year Ended December 31, 2019 ************** Prepare a intermediate calculations.) Current assets: Total current assets Plant assets: ***************** balance sheet as at 2019. (Negative amounts should be indicated by a minus sign. Do not round your Total plant assets Total assets Assets BUG-OFF EXTERMINATORS Balance Sheet December 31, 2019 ************ Liabilities Current liabilities: Total current liabilities Long-term liabilities: Total liabilities Equity Total liabilities and equity 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 Trucks Accum. depreciation-Trucks Equipment Accum. depreciation-Equipment Accounts payable Estimated warranty liability Unearned services revenue Interest payable Long-term notes payable. Common stock Retained earnings Dividends Extermination services revenue FALE Interest revenue Sales (of merchandise) Cost Cost of goods sold Deko Depreciation expense-Trucks Depreciation expense-Equipment Wages expense Interest expense Rent expense Bad debts expense Miscellaneous expense Repairs expense Utilities expense Warranty expense Totals Unadjusted Trial Balance $ 19,400 5,200 15,300 44,000 78,600 22,000 49,900 0 0 47,000 $ 852 0 21,800 5,600 2,000 0 0 27,000 22,000 64,900 84,000 896 97,826 21,000 0 1,274 14,000 9,200 $326,874 $326,874 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, 2019, 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) 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.) $16,300 19,400 2,400 3,050 76 27 b. An examination of customers' accounts shows that accounts totaling $691 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 $760. 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) $38,000 $12,800 4 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) $36,600 Sprayer Injector $20,400 $ 3,700 5 $ 3,000 8 e. On September 1, 2019, the company is paid $17,100 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 $72,600 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. g. The $21,000 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, 2019. h. The ending inventory of merchandise is counted and determined to have a cost of $15,300. 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 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 Revenue accounts. f. The adjusted 2019 ending balances of the accounts for Warranty Expense and Estimated Warranty Liability. g. 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 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 year 2019. 4b. Prepare the statement of retained earnings (cash dividends during 2019 were $22,000) for 2019. 4c. Prepare a classified balance sheet as at 2019. 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 Revenue accounts. (Do not round your intermediate calculations.) f. The adjusted 2019 ending balances of the accounts for Warranty Expense and Estimated Warranty Liability. g. The adjusted 2019 ending balances of the accounts for Interest Expense and Interest Payable. a. b. C. d. e. f. g. Reconciled balance Omitted check Necessary adjustment Depreciation expense Depreciation expense Ending balances after adjustment Ending balances after adjustment Ending balances after adjustment Sprayer Services Revenue Warranty Expense Interest Expense Injector Unearned Services Revenue Estimated Warranty Liability Interest Payable Show less A 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 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 Long-term notes payable Common stock Retained earnings Dividends Extermination services revenue Interest revenue Sales Cost of goods sold BUG-OFF EXTERMINATORS December 31, 2019 Unadjusted Trial Balance Debit $ 19,400 5,200 15,300 44,000 78,600 22,000 49,900 Credit $ 852 0 21,800 5,600 2,000 0 0 27,000 22,000 64,900 84,000 896 97,826 Adjustments Debit Credit Adjusted Trial Balance Debit Credit Deprec. expense-Trucks Deprec. expense-Equip Wages expense Interest expense Rent expense Bad debts expense Miscellaneous expense Repairs expense Utilities expense Warranty expense Totals 0 0 47,000 0 21,000 0 1,274 14,000 9,200 0 $ 326,874 $ 326,874 < Req 1 Req 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. (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 Transaction (a) 3 Note: Enter debits before credits. Record the adjustment to the Cash account. Record entry 4 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > 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 Note: Enter debits before credits. Transaction (b1) Record entry 4 Record the write off of uncollectible accounts. 5 General Journal 6 Clear entry 7 8 Debit Credit View general journal > 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 Transaction (b2) 3 Note: Enter debits before credits. Record the adjustment for bad debts. Record entry 4 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > 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 Record depreciation on the truck. Note: Enter debits before credits. Transaction (c) Record entry 4 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > 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 Note: Enter debits before credits. Record depreciation on the equipment. Transaction (d) 4 Record entry 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > 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 Note: Enter debits before credits. Transaction (e) Record entry 4 Recorded the adjustment for unearned revenues. 5 General Journal 6 Clear entry 7 8 Debit Credit View general journal > 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 Note: Enter debits before credits. Transaction (f) Record the estimated warranty expense. Record entry 4 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > 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 Record the adjustment for interest. Note: Enter debits before credits. Transaction (g) 4 Record entry 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > Prepare a single-step income statement for year 2019. Revenues Total revenues Expenses Total expenses BUG-OFF EXTERMINATORS Income Statement For Year Ended December 31, 2019 Prepare the statement of retained earnings (cash dividends during 2019 were $22,000) for 2019. BUG-OFF EXTERMINATORS Statement of Retained Earnings For Year Ended December 31, 2019 ************** Prepare a intermediate calculations.) Current assets: Total current assets Plant assets: ***************** balance sheet as at 2019. (Negative amounts should be indicated by a minus sign. Do not round your Total plant assets Total assets Assets BUG-OFF EXTERMINATORS Balance Sheet December 31, 2019 ************ Liabilities Current liabilities: Total current liabilities Long-term liabilities: Total liabilities Equity Total liabilities and equity 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 Trucks Accum. depreciation-Trucks Equipment Accum. depreciation-Equipment Accounts payable Estimated warranty liability Unearned services revenue Interest payable Long-term notes payable. Common stock Retained earnings Dividends Extermination services revenue FALE Interest revenue Sales (of merchandise) Cost Cost of goods sold Deko Depreciation expense-Trucks Depreciation expense-Equipment Wages expense Interest expense Rent expense Bad debts expense Miscellaneous expense Repairs expense Utilities expense Warranty expense Totals Unadjusted Trial Balance $ 19,400 5,200 15,300 44,000 78,600 22,000 49,900 0 0 47,000 $ 852 0 21,800 5,600 2,000 0 0 27,000 22,000 64,900 84,000 896 97,826 21,000 0 1,274 14,000 9,200 $326,874 $326,874 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, 2019, 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) 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.) $16,300 19,400 2,400 3,050 76 27 b. An examination of customers' accounts shows that accounts totaling $691 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 $760. 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) $38,000 $12,800 4 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) $36,600 Sprayer Injector $20,400 $ 3,700 5 $ 3,000 8 e. On September 1, 2019, the company is paid $17,100 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 $72,600 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. g. The $21,000 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, 2019. h. The ending inventory of merchandise is counted and determined to have a cost of $15,300. 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 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 Revenue accounts. f. The adjusted 2019 ending balances of the accounts for Warranty Expense and Estimated Warranty Liability. g. 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 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 year 2019. 4b. Prepare the statement of retained earnings (cash dividends during 2019 were $22,000) for 2019. 4c. Prepare a classified balance sheet as at 2019. 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 Revenue accounts. (Do not round your intermediate calculations.) f. The adjusted 2019 ending balances of the accounts for Warranty Expense and Estimated Warranty Liability. g. The adjusted 2019 ending balances of the accounts for Interest Expense and Interest Payable. a. b. C. d. e. f. g. Reconciled balance Omitted check Necessary adjustment Depreciation expense Depreciation expense Ending balances after adjustment Ending balances after adjustment Ending balances after adjustment Sprayer Services Revenue Warranty Expense Interest Expense Injector Unearned Services Revenue Estimated Warranty Liability Interest Payable Show less A 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 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 Long-term notes payable Common stock Retained earnings Dividends Extermination services revenue Interest revenue Sales Cost of goods sold BUG-OFF EXTERMINATORS December 31, 2019 Unadjusted Trial Balance Debit $ 19,400 5,200 15,300 44,000 78,600 22,000 49,900 Credit $ 852 0 21,800 5,600 2,000 0 0 27,000 22,000 64,900 84,000 896 97,826 Adjustments Debit Credit Adjusted Trial Balance Debit Credit Deprec. expense-Trucks Deprec. expense-Equip Wages expense Interest expense Rent expense Bad debts expense Miscellaneous expense Repairs expense Utilities expense Warranty expense Totals 0 0 47,000 0 21,000 0 1,274 14,000 9,200 0 $ 326,874 $ 326,874 < Req 1 Req 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. (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 Transaction (a) 3 Note: Enter debits before credits. Record the adjustment to the Cash account. Record entry 4 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > 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 Note: Enter debits before credits. Transaction (b1) Record entry 4 Record the write off of uncollectible accounts. 5 General Journal 6 Clear entry 7 8 Debit Credit View general journal > 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 Transaction (b2) 3 Note: Enter debits before credits. Record the adjustment for bad debts. Record entry 4 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > 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 Record depreciation on the truck. Note: Enter debits before credits. Transaction (c) Record entry 4 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > 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 Note: Enter debits before credits. Record depreciation on the equipment. Transaction (d) 4 Record entry 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > 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 Note: Enter debits before credits. Transaction (e) Record entry 4 Recorded the adjustment for unearned revenues. 5 General Journal 6 Clear entry 7 8 Debit Credit View general journal > 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 Note: Enter debits before credits. Transaction (f) Record the estimated warranty expense. Record entry 4 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > 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 Record the adjustment for interest. Note: Enter debits before credits. Transaction (g) 4 Record entry 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > Prepare a single-step income statement for year 2019. Revenues Total revenues Expenses Total expenses BUG-OFF EXTERMINATORS Income Statement For Year Ended December 31, 2019 Prepare the statement of retained earnings (cash dividends during 2019 were $22,000) for 2019. BUG-OFF EXTERMINATORS Statement of Retained Earnings For Year Ended December 31, 2019 ************** Prepare a intermediate calculations.) Current assets: Total current assets Plant assets: ***************** balance sheet as at 2019. (Negative amounts should be indicated by a minus sign. Do not round your Total plant assets Total assets Assets BUG-OFF EXTERMINATORS Balance Sheet December 31, 2019 ************ Liabilities Current liabilities: Total current liabilities Long-term liabilities: Total liabilities Equity Total liabilities and equity 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 Trucks Accum. depreciation-Trucks Equipment Accum. depreciation-Equipment Accounts payable Estimated warranty liability Unearned services revenue Interest payable Long-term notes payable. Common stock Retained earnings Dividends Extermination services revenue FALE Interest revenue Sales (of merchandise) Cost Cost of goods sold Deko Depreciation expense-Trucks Depreciation expense-Equipment Wages expense Interest expense Rent expense Bad debts expense Miscellaneous expense Repairs expense Utilities expense Warranty expense Totals Unadjusted Trial Balance $ 19,400 5,200 15,300 44,000 78,600 22,000 49,900 0 0 47,000 $ 852 0 21,800 5,600 2,000 0 0 27,000 22,000 64,900 84,000 896 97,826 21,000 0 1,274 14,000 9,200 $326,874 $326,874 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, 2019, 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) 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.) $16,300 19,400 2,400 3,050 76 27 b. An examination of customers' accounts shows that accounts totaling $691 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 $760. 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) $38,000 $12,800 4 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) $36,600 Sprayer Injector $20,400 $ 3,700 5 $ 3,000 8 e. On September 1, 2019, the company is paid $17,100 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 $72,600 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. g. The $21,000 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, 2019. h. The ending inventory of merchandise is counted and determined to have a cost of $15,300. 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 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 Revenue accounts. f. The adjusted 2019 ending balances of the accounts for Warranty Expense and Estimated Warranty Liability. g. 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 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 year 2019. 4b. Prepare the statement of retained earnings (cash dividends during 2019 were $22,000) for 2019. 4c. Prepare a classified balance sheet as at 2019. 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 Revenue accounts. (Do not round your intermediate calculations.) f. The adjusted 2019 ending balances of the accounts for Warranty Expense and Estimated Warranty Liability. g. The adjusted 2019 ending balances of the accounts for Interest Expense and Interest Payable. a. b. C. d. e. f. g. Reconciled balance Omitted check Necessary adjustment Depreciation expense Depreciation expense Ending balances after adjustment Ending balances after adjustment Ending balances after adjustment Sprayer Services Revenue Warranty Expense Interest Expense Injector Unearned Services Revenue Estimated Warranty Liability Interest Payable Show less A 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 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 Long-term notes payable Common stock Retained earnings Dividends Extermination services revenue Interest revenue Sales Cost of goods sold BUG-OFF EXTERMINATORS December 31, 2019 Unadjusted Trial Balance Debit $ 19,400 5,200 15,300 44,000 78,600 22,000 49,900 Credit $ 852 0 21,800 5,600 2,000 0 0 27,000 22,000 64,900 84,000 896 97,826 Adjustments Debit Credit Adjusted Trial Balance Debit Credit Deprec. expense-Trucks Deprec. expense-Equip Wages expense Interest expense Rent expense Bad debts expense Miscellaneous expense Repairs expense Utilities expense Warranty expense Totals 0 0 47,000 0 21,000 0 1,274 14,000 9,200 0 $ 326,874 $ 326,874 < Req 1 Req 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. (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 Transaction (a) 3 Note: Enter debits before credits. Record the adjustment to the Cash account. Record entry 4 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > 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 Note: Enter debits before credits. Transaction (b1) Record entry 4 Record the write off of uncollectible accounts. 5 General Journal 6 Clear entry 7 8 Debit Credit View general journal > 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 Transaction (b2) 3 Note: Enter debits before credits. Record the adjustment for bad debts. Record entry 4 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > 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 Record depreciation on the truck. Note: Enter debits before credits. Transaction (c) Record entry 4 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > 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 Note: Enter debits before credits. Record depreciation on the equipment. Transaction (d) 4 Record entry 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > 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 Note: Enter debits before credits. Transaction (e) Record entry 4 Recorded the adjustment for unearned revenues. 5 General Journal 6 Clear entry 7 8 Debit Credit View general journal > 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 Note: Enter debits before credits. Transaction (f) Record the estimated warranty expense. Record entry 4 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > 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 Record the adjustment for interest. Note: Enter debits before credits. Transaction (g) 4 Record entry 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > Prepare a single-step income statement for year 2019. Revenues Total revenues Expenses Total expenses BUG-OFF EXTERMINATORS Income Statement For Year Ended December 31, 2019 Prepare the statement of retained earnings (cash dividends during 2019 were $22,000) for 2019. BUG-OFF EXTERMINATORS Statement of Retained Earnings For Year Ended December 31, 2019 ************** Prepare a intermediate calculations.) Current assets: Total current assets Plant assets: ***************** balance sheet as at 2019. (Negative amounts should be indicated by a minus sign. Do not round your Total plant assets Total assets Assets BUG-OFF EXTERMINATORS Balance Sheet December 31, 2019 ************ Liabilities Current liabilities: Total current liabilities Long-term liabilities: Total liabilities Equity Total liabilities and equity 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 Trucks Accum. depreciation-Trucks Equipment Accum. depreciation-Equipment Accounts payable Estimated warranty liability Unearned services revenue Interest payable Long-term notes payable. Common stock Retained earnings Dividends Extermination services revenue FALE Interest revenue Sales (of merchandise) Cost Cost of goods sold Deko Depreciation expense-Trucks Depreciation expense-Equipment Wages expense Interest expense Rent expense Bad debts expense Miscellaneous expense Repairs expense Utilities expense Warranty expense Totals Unadjusted Trial Balance $ 19,400 5,200 15,300 44,000 78,600 22,000 49,900 0 0 47,000 $ 852 0 21,800 5,600 2,000 0 0 27,000 22,000 64,900 84,000 896 97,826 21,000 0 1,274 14,000 9,200 $326,874 $326,874 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, 2019, 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) 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.) $16,300 19,400 2,400 3,050 76 27 b. An examination of customers' accounts shows that accounts totaling $691 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 $760. 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) $38,000 $12,800 4 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) $36,600 Sprayer Injector $20,400 $ 3,700 5 $ 3,000 8 e. On September 1, 2019, the company is paid $17,100 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 $72,600 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. g. The $21,000 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, 2019. h. The ending inventory of merchandise is counted and determined to have a cost of $15,300. 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 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 Revenue accounts. f. The adjusted 2019 ending balances of the accounts for Warranty Expense and Estimated Warranty Liability. g. 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 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 year 2019. 4b. Prepare the statement of retained earnings (cash dividends during 2019 were $22,000) for 2019. 4c. Prepare a classified balance sheet as at 2019. 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 Revenue accounts. (Do not round your intermediate calculations.) f. The adjusted 2019 ending balances of the accounts for Warranty Expense and Estimated Warranty Liability. g. The adjusted 2019 ending balances of the accounts for Interest Expense and Interest Payable. a. b. C. d. e. f. g. Reconciled balance Omitted check Necessary adjustment Depreciation expense Depreciation expense Ending balances after adjustment Ending balances after adjustment Ending balances after adjustment Sprayer Services Revenue Warranty Expense Interest Expense Injector Unearned Services Revenue Estimated Warranty Liability Interest Payable Show less A 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 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 Long-term notes payable Common stock Retained earnings Dividends Extermination services revenue Interest revenue Sales Cost of goods sold BUG-OFF EXTERMINATORS December 31, 2019 Unadjusted Trial Balance Debit $ 19,400 5,200 15,300 44,000 78,600 22,000 49,900 Credit $ 852 0 21,800 5,600 2,000 0 0 27,000 22,000 64,900 84,000 896 97,826 Adjustments Debit Credit Adjusted Trial Balance Debit Credit Deprec. expense-Trucks Deprec. expense-Equip Wages expense Interest expense Rent expense Bad debts expense Miscellaneous expense Repairs expense Utilities expense Warranty expense Totals 0 0 47,000 0 21,000 0 1,274 14,000 9,200 0 $ 326,874 $ 326,874 < Req 1 Req 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. (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 Transaction (a) 3 Note: Enter debits before credits. Record the adjustment to the Cash account. Record entry 4 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > 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 Note: Enter debits before credits. Transaction (b1) Record entry 4 Record the write off of uncollectible accounts. 5 General Journal 6 Clear entry 7 8 Debit Credit View general journal > 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 Transaction (b2) 3 Note: Enter debits before credits. Record the adjustment for bad debts. Record entry 4 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > 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 Record depreciation on the truck. Note: Enter debits before credits. Transaction (c) Record entry 4 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > 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 Note: Enter debits before credits. Record depreciation on the equipment. Transaction (d) 4 Record entry 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > 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 Note: Enter debits before credits. Transaction (e) Record entry 4 Recorded the adjustment for unearned revenues. 5 General Journal 6 Clear entry 7 8 Debit Credit View general journal > 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 Note: Enter debits before credits. Transaction (f) Record the estimated warranty expense. Record entry 4 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > 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 Record the adjustment for interest. Note: Enter debits before credits. Transaction (g) 4 Record entry 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > Prepare a single-step income statement for year 2019. Revenues Total revenues Expenses Total expenses BUG-OFF EXTERMINATORS Income Statement For Year Ended December 31, 2019 Prepare the statement of retained earnings (cash dividends during 2019 were $22,000) for 2019. BUG-OFF EXTERMINATORS Statement of Retained Earnings For Year Ended December 31, 2019 ************** Prepare a intermediate calculations.) Current assets: Total current assets Plant assets: ***************** balance sheet as at 2019. (Negative amounts should be indicated by a minus sign. Do not round your Total plant assets Total assets Assets BUG-OFF EXTERMINATORS Balance Sheet December 31, 2019 ************ Liabilities Current liabilities: Total current liabilities Long-term liabilities: Total liabilities Equity Total liabilities and equity 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 Trucks Accum. depreciation-Trucks Equipment Accum. depreciation-Equipment Accounts payable Estimated warranty liability Unearned services revenue Interest payable Long-term notes payable. Common stock Retained earnings Dividends Extermination services revenue FALE Interest revenue Sales (of merchandise) Cost Cost of goods sold Deko Depreciation expense-Trucks Depreciation expense-Equipment Wages expense Interest expense Rent expense Bad debts expense Miscellaneous expense Repairs expense Utilities expense Warranty expense Totals Unadjusted Trial Balance $ 19,400 5,200 15,300 44,000 78,600 22,000 49,900 0 0 47,000 $ 852 0 21,800 5,600 2,000 0 0 27,000 22,000 64,900 84,000 896 97,826 21,000 0 1,274 14,000 9,200 $326,874 $326,874 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, 2019, 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) 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.) $16,300 19,400 2,400 3,050 76 27 b. An examination of customers' accounts shows that accounts totaling $691 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 $760. 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) $38,000 $12,800 4 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) $36,600 Sprayer Injector $20,400 $ 3,700 5 $ 3,000 8 e. On September 1, 2019, the company is paid $17,100 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 $72,600 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. g. The $21,000 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, 2019. h. The ending inventory of merchandise is counted and determined to have a cost of $15,300. 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 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 Revenue accounts. f. The adjusted 2019 ending balances of the accounts for Warranty Expense and Estimated Warranty Liability. g. 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 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 year 2019. 4b. Prepare the statement of retained earnings (cash dividends during 2019 were $22,000) for 2019. 4c. Prepare a classified balance sheet as at 2019. 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 Revenue accounts. (Do not round your intermediate calculations.) f. The adjusted 2019 ending balances of the accounts for Warranty Expense and Estimated Warranty Liability. g. The adjusted 2019 ending balances of the accounts for Interest Expense and Interest Payable. a. b. C. d. e. f. g. Reconciled balance Omitted check Necessary adjustment Depreciation expense Depreciation expense Ending balances after adjustment Ending balances after adjustment Ending balances after adjustment Sprayer Services Revenue Warranty Expense Interest Expense Injector Unearned Services Revenue Estimated Warranty Liability Interest Payable Show less A 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 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 Long-term notes payable Common stock Retained earnings Dividends Extermination services revenue Interest revenue Sales Cost of goods sold BUG-OFF EXTERMINATORS December 31, 2019 Unadjusted Trial Balance Debit $ 19,400 5,200 15,300 44,000 78,600 22,000 49,900 Credit $ 852 0 21,800 5,600 2,000 0 0 27,000 22,000 64,900 84,000 896 97,826 Adjustments Debit Credit Adjusted Trial Balance Debit Credit Deprec. expense-Trucks Deprec. expense-Equip Wages expense Interest expense Rent expense Bad debts expense Miscellaneous expense Repairs expense Utilities expense Warranty expense Totals 0 0 47,000 0 21,000 0 1,274 14,000 9,200 0 $ 326,874 $ 326,874 < Req 1 Req 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. (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 Transaction (a) 3 Note: Enter debits before credits. Record the adjustment to the Cash account. Record entry 4 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > 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 Note: Enter debits before credits. Transaction (b1) Record entry 4 Record the write off of uncollectible accounts. 5 General Journal 6 Clear entry 7 8 Debit Credit View general journal > 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 Transaction (b2) 3 Note: Enter debits before credits. Record the adjustment for bad debts. Record entry 4 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > 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 Record depreciation on the truck. Note: Enter debits before credits. Transaction (c) Record entry 4 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > 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 Note: Enter debits before credits. Record depreciation on the equipment. Transaction (d) 4 Record entry 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > 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 Note: Enter debits before credits. Transaction (e) Record entry 4 Recorded the adjustment for unearned revenues. 5 General Journal 6 Clear entry 7 8 Debit Credit View general journal > 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 Note: Enter debits before credits. Transaction (f) Record the estimated warranty expense. Record entry 4 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > 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 Record the adjustment for interest. Note: Enter debits before credits. Transaction (g) 4 Record entry 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > Prepare a single-step income statement for year 2019. Revenues Total revenues Expenses Total expenses BUG-OFF EXTERMINATORS Income Statement For Year Ended December 31, 2019 Prepare the statement of retained earnings (cash dividends during 2019 were $22,000) for 2019. BUG-OFF EXTERMINATORS Statement of Retained Earnings For Year Ended December 31, 2019 ************** Prepare a intermediate calculations.) Current assets: Total current assets Plant assets: ***************** balance sheet as at 2019. (Negative amounts should be indicated by a minus sign. Do not round your Total plant assets Total assets Assets BUG-OFF EXTERMINATORS Balance Sheet December 31, 2019 ************ Liabilities Current liabilities: Total current liabilities Long-term liabilities: Total liabilities Equity Total liabilities and equity 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 Trucks Accum. depreciation-Trucks Equipment Accum. depreciation-Equipment Accounts payable Estimated warranty liability Unearned services revenue Interest payable Long-term notes payable. Common stock Retained earnings Dividends Extermination services revenue FALE Interest revenue Sales (of merchandise) Cost Cost of goods sold Deko Depreciation expense-Trucks Depreciation expense-Equipment Wages expense Interest expense Rent expense Bad debts expense Miscellaneous expense Repairs expense Utilities expense Warranty expense Totals Unadjusted Trial Balance $ 19,400 5,200 15,300 44,000 78,600 22,000 49,900 0 0 47,000 $ 852 0 21,800 5,600 2,000 0 0 27,000 22,000 64,900 84,000 896 97,826 21,000 0 1,274 14,000 9,200 $326,874 $326,874 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, 2019, 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) 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.) $16,300 19,400 2,400 3,050 76 27 b. An examination of customers' accounts shows that accounts totaling $691 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 $760. 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) $38,000 $12,800 4 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) $36,600 Sprayer Injector $20,400 $ 3,700 5 $ 3,000 8 e. On September 1, 2019, the company is paid $17,100 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 $72,600 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. g. The $21,000 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, 2019. h. The ending inventory of merchandise is counted and determined to have a cost of $15,300. 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 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 Revenue accounts. f. The adjusted 2019 ending balances of the accounts for Warranty Expense and Estimated Warranty Liability. g. 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 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 year 2019. 4b. Prepare the statement of retained earnings (cash dividends during 2019 were $22,000) for 2019. 4c. Prepare a classified balance sheet as at 2019. 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 Revenue accounts. (Do not round your intermediate calculations.) f. The adjusted 2019 ending balances of the accounts for Warranty Expense and Estimated Warranty Liability. g. The adjusted 2019 ending balances of the accounts for Interest Expense and Interest Payable. a. b. C. d. e. f. g. Reconciled balance Omitted check Necessary adjustment Depreciation expense Depreciation expense Ending balances after adjustment Ending balances after adjustment Ending balances after adjustment Sprayer Services Revenue Warranty Expense Interest Expense Injector Unearned Services Revenue Estimated Warranty Liability Interest Payable Show less A 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 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 Long-term notes payable Common stock Retained earnings Dividends Extermination services revenue Interest revenue Sales Cost of goods sold BUG-OFF EXTERMINATORS December 31, 2019 Unadjusted Trial Balance Debit $ 19,400 5,200 15,300 44,000 78,600 22,000 49,900 Credit $ 852 0 21,800 5,600 2,000 0 0 27,000 22,000 64,900 84,000 896 97,826 Adjustments Debit Credit Adjusted Trial Balance Debit Credit Deprec. expense-Trucks Deprec. expense-Equip Wages expense Interest expense Rent expense Bad debts expense Miscellaneous expense Repairs expense Utilities expense Warranty expense Totals 0 0 47,000 0 21,000 0 1,274 14,000 9,200 0 $ 326,874 $ 326,874 < Req 1 Req 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. (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 Transaction (a) 3 Note: Enter debits before credits. Record the adjustment to the Cash account. Record entry 4 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > 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 Note: Enter debits before credits. Transaction (b1) Record entry 4 Record the write off of uncollectible accounts. 5 General Journal 6 Clear entry 7 8 Debit Credit View general journal > 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 Transaction (b2) 3 Note: Enter debits before credits. Record the adjustment for bad debts. Record entry 4 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > 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 Record depreciation on the truck. Note: Enter debits before credits. Transaction (c) Record entry 4 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > 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 Note: Enter debits before credits. Record depreciation on the equipment. Transaction (d) 4 Record entry 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > 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 Note: Enter debits before credits. Transaction (e) Record entry 4 Recorded the adjustment for unearned revenues. 5 General Journal 6 Clear entry 7 8 Debit Credit View general journal > 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 Note: Enter debits before credits. Transaction (f) Record the estimated warranty expense. Record entry 4 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > 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 Record the adjustment for interest. Note: Enter debits before credits. Transaction (g) 4 Record entry 5 General Journal Clear entry 6 7 8 Debit Credit View general journal > Prepare a single-step income statement for year 2019. Revenues Total revenues Expenses Total expenses BUG-OFF EXTERMINATORS Income Statement For Year Ended December 31, 2019 Prepare the statement of retained earnings (cash dividends during 2019 were $22,000) for 2019. BUG-OFF EXTERMINATORS Statement of Retained Earnings For Year Ended December 31, 2019 ************** Prepare a intermediate calculations.) Current assets: Total current assets Plant assets: ***************** balance sheet as at 2019. (Negative amounts should be indicated by a minus sign. Do not round your Total plant assets Total assets Assets BUG-OFF EXTERMINATORS Balance Sheet December 31, 2019 ************ Liabilities Current liabilities: Total current liabilities Long-term liabilities: Total liabilities Equity Total liabilities and equity