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. Cash Accounts receivable December 31, 2019 Unadjusted Trial Balance $ 19,800 Allowance for doubtful accounts Merchandise inventory 5,400 856 Accounts payable Trucks Accum. depreciation-Trucks Equipment Accum. depreciation-Equipment Estimated warranty liability 15,900 46,000 o 87,800 23,400 5,700 2,100 Unearned services revenue 0 Interest payable Long-term notes payable 29,000 Common stock 24,000 Retained eamings 67,500 Dividends 24,000 Extermination services revenue 88,000 Interest revenue 000 Sales (of merchandise) 105,826 Cost of goods sold 50,500 Depreciation expense-Trucks Depreciation expense-Equipment 0 49,000 Wages expense Interest expense 0 23,000 Rent expense Bad debts expense Miscellaneous expense 1,282 15,000 Repairs expense 9,600 Ubilities expense Warranty expense $347.282 $347,282 Totals The following information in a through h applies to the company at the end of the current year. a. The bank reconciliation as of December 31, 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) $16,500 19,800 2,500 3,150 80 29 17150 19650 15Single PrintView&singleQuestion No 1.&postSubmission View-132527124331855338wid-132527142394875438role-student&pid=28861784 4122 write-off method. Assignment Print View Reported on the bank statement is a canceled check that the company tated to record. (Information from the bank reconciliation allows you to determine the amount of this check, which is a payment on an account payable.) b. An examination of customers' accounts shows that accounts totaling $603 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 $770 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) $39,000 $13.600 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) Sprayer Injector $38.200 $20.800 $3,000 $3,000 B e. On September 1, 2019, the company is paid $19,500 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 $75,000 for 2019 No warranty expense has been recorded for 2019. All costs of servicing warranties in 2010 were property debited to the Estimated Warranty Liability account g. The $22,000 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 $15,000. 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 Uneamed 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 $24,000) for 2019. 4c. Prepare a classified balance sheet as at 2019. Req 1 Req 2 Req 3 Req 4A Req 48 Req 4C a. Correct (reconciled) ending balance of Cash; and the amount of the omitted check. b. Adjustment needed to obtain the correct ending balance of the Allowance for Doubtful Accounts. c. Depreciation expense for the truck used during year 2019. d. Depreciation expense for the two items of equipment used during year 2019. 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. Reconciled balance Omitted check Necessary adjustment Depreciation expense Sprayer Injector Depreciation expense Unearned Services 2. Services Revenue Revenues Ending balances after adjustment Estimated L Warranty Warranty Expense Liability Ending balances after adjustment Interest Expense Interest Payable Ending balances after adjustment Rag 1 Req2> Show less 50 points 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.) BUG-OFF EXTERMINATORS December 31, 2019 eBook Unadjusted Trial Balance Adjustments Adjusted Trial Balance Account Title Debit Credit Debit Credi Debit Credit Cash $ 19.800 Print Accounts receivable 5,400 Allowance for doubtful accounts $ 850 Merchandise inventory 15,900 References Trucks 40,000 Accum deprec-Trucks Equipment 87,800 Accum deprec-Equip 23,400 Accounts payable 5.700 Estim, warranty liability 2.100 Unearned services rev Interest payable Long-term notes payable Common stock Retained earnings Dividends Extermination services revenue interest revenue Sales Cost of goods sold 0 29.000 24.000 67.500 24,000 88.000 900 105.820 50.500 Deprec expense-Trucks Deprec expense-Equip Wages expense O 0 40.000 0 Interest expense Rent expense 23.000 Bad debts expense 0 Miscelaneous expense 1,282 Repairs expense 15,000 Usites expense 0.000 O Warranty expense Totals 347202 347-292 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 brequires 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 $24,000) for 2019 4c. Prepare a classified balance sheet as at 2019 Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req3 Rag 4A Req 4 Req 4C Prepare journal entries to record the adjustments entered on the six-column table. Assume Bug-Off's adjusted balance for Merchandise Inventory matches the year-end physical count. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field. Do not round your intermediate calculations.) View transaction st Journal entry worksheet Record the adjustment to the Cash account. Note Enter debits before credits Transaction General Journal Debit Creda Record endry Charity 222 ALCOHOL TX- 10.0257 Focol SALES T-7525). Prev 1 of 20 hp View transaction list Journal entry worksheet Record depreciation on the equipment. Note: Enter debits before credits. Transaction (d) General Journal Debit Credit Clear entry Record entry View general journal Journal entry worksheet Record the estimated warranty expense. Note: Enter debits before credits. Transaction (f) General Journal Debit Credit Clear entry Record entry Journal entry worksheet 1 2 3 4 5 6 7 Record the adjustment for interest. Note: Enter debits before credits. Transaction (g) General Journal Debit Credit Record entry Clear entry Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 48 Req 4C Prepare a single-step income statement for year 2019. BUG-OFF EXTERMINATORS Income Statement For Year Ended December 31, 2019 Revenues Total revenues 5 Expenses Total expenses 13 4a. Prepare a single-step income statement for yed! 4b. Prepare the statement of retained earnings (cash dividends during 2019 were $24,000) for 2019. 4c. Prepare a classified balance sheet as at 2019 Complete this question by entering your answers in the tabs below. 2222 Req 1 Req 21 Req 3 Req 4A Req 48 Req 4C Prepare the statement of retained earnings (cash dividends during 2019 were $24,000) for 2019. BUG-OFF EXTERMINATORS Statement of Retained Earnings For Year Ended December 31, 2019. 0 0 ALCOHOL Tx-10.025%. FOOD SALES TX- 7.525% Luyyou in UWELLD Req 1 Req 2 3 Reg 4A Req 42 Req 4C Prepare a classified balance sheet as at 2019. (Negative amounts should be indicated by a minus sign. Do not round your intermediate calculations.) BUG-OFF EXTERMINATORS Current assets Assets Total current assets Plant assets Elalance Sheet Desember 31, 2018 Total plant assets Total assets $ 0 Liabilities Current liables 0 Total current liabilities 3 of Long-term labilites Total liabilities Equity Total abilites and equity ALCOHOL Tx 10.0251