Bug-Off Exterminators provides pest control services and sells extermination products manufactured by other companies. The following six-column table contains the company's unadjusted trial balance as of December 31, 2018. BUG-OFF EXTERMINATORS December 31, 2018 Unadjusted Trial Balance Cash $ 18, 200 Accounts receivable 3,800 Allowance for doubtful accounts 822 Merchandise inventory 12,100 Trucka 30,700 Accum. depreciation-Trucks 0 Equipment 52,000 Accum. depreciation Equipment 11,200 Accounts payable 4,000 Estimated warranty liability 1,300 Unearned services revenue 0 Interest payable Long-term notes payable 14,600 Common stock 11,000 Retained earnings 49,200 Dividends 12,000 Extermination services revenue 56,000 Interest revenue 870 Sales (of merchandise) 79,415 Cost of goods sold 44,200 Depreciation expense-Trucks 0 Depreciation expense-Equipment 0 Wages expense 33,000 Interest expense Rent expense 7,800 Bad debts expense 0 Miscellaneous expense 1,207 Repairs expense 6,500 Utilities expense 6,900 Warranty expense Totala $228,407 $228,407 0 0 The following information in a through h applies to the company at the end of the current year. a. The bank reconciliation as of December 31, 2018, includes the following facts. Cash balance per bank Cash balance per books Outstanding checks Deposit in transit Interest earned (on bank account) Bank service charges (miscellaneous expense) $ 15,100 17,000 1,800 2,450 52 15 Reported on the bank statement is a canceled check that the company failed to record. (Information from the bank reconciliation allows you to determine the amount of this check, which is a payment on an account payable.) b. An examination of customers' accounts shows that accounts totaling $679 should be written off as uncollectible. Using an aging of receivables, the company determines that the ending balance of the Allowance for Doubtful Accounts should be $700. c. A truck is purchased and placed in service on January 1, 2018. Its cost is being depreciated with the straight-line method using the following facts and estimates. Original cost Expected salvage value Useful life (years) $32,000 3,000 d. Two items of equipment (a sprayer and an injector) were purchased and put into service in early January 2016. They are being depreciated with the straight-line method using these facts and estimates. Original cost Expected salvage value Useful life (years) Sprayer Injector $27,000 $18,000 3,000 2,500 5 e. On August 1, 2018, the company is paid $3,840 cash in advance to provide monthly service for an apartment complex for one year The company began providing the services in August. When the cash was received, the full amount was credited to the Extermination Services Revenue account f. The company offers a warranty for the services it sells. The expected cost of providing warranty service is 2.5% of the extermination services revenue of $53,760 for 2018. No warranty expense has been recorded for 2018. All costs of servicing warranties in 2018 were properly debited to the Estimated Warranty Liability account. 9. The $15,000 long-term note is an 8%, five-year, interest-bearing note with interest payable annually on December 31. The note was signed with First National Bank on December 31, 2018. h. The ending inventory of merchandise is counted and determined to have a cost of $11700. Bug-Off uses a perpetual inventory system a. Correct (reconciled) ending balance of Cash, and the amount of the omitted check. b. Adjustment needed to obtain the correct ending balance of the Allowance for Doubtful Accounts. c. Depreciation expense for the truck used during year 2018. d. Depreciation expense for the two items of equipment used during year 2018 e. The adjusted 2018 ending balances of the Extermination Services Revenue and Unearned Services Revenue accounts. f. The adjusted 2018 ending balances of the Warranty Expense and the Estimated Warranty Liability accounts. g. The adjusted 2018 ending balances of the Interest Expense and the Interest Payable accounts, 2. Use the results of part 1 to complete the six-column table by first entering the appropriate adjustments for items a through g and then completing the Adjusted Trial Balance columns. (Hint:Item b requires two adjustments.) 3. Prepare journal entries to record the adjustments entered 4n the six-column table. Assume Bug-Off's adjusted balance for Merchandise Inventory matches the year-end physical count. 4-a. Prepare a single-step income statement for year 2018. 4-6. Prepare a statement of retained earnings (cash dividends during 2018 were $10,000) for year 2018. 4-c. Prepare a classified balance sheet as at 2018. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Req 4A Req 48 Req 4C a. Correct (reconciled) ending balance of Cash, and the amount of the omitted check. b. Adjustment needed to obtain the correct ending balance of the Allowance for Doubtful Accounts. c. Depreciation expense for the truck used during year 2018. d. Depreciation expense for the two items of equipment used during year 2018, e. The adjusted 2018 ending balances of the Extermination Services Revenue and Unearned Services Revenue accounts. 1. The adjusted 2018 ending balances of the Warranty Expense and the Estimated Warranty Liability accounts. 9. The adjusted 2018 ending balances of the Interest Expense and the Interest Payable accounts. (Round amounts to nearest whole dollar.) Show less a Reconciled balance Omitted check b. Necessary adjustment c. Depreciation expense d. Depreciation --Sprayer Depreciation-Injector e Services revenue Uneamed services revenue. 1. Warranty expense Estimated warranty liability 9 Interest expense Interest payable ten Reg 2 > 4- Prepare a single-step income statement for year 2018 4-6. Prepare a statement of retained earnings (cash dividends during 2018 were $10,000) for year 2018. 4-c. Prepare a classified balance sheet as at 2018 Complete this question by entering your answers in the tabs below. Rea 1 Reg 2 Reg 3 R4A Ree 48 Reg 40 Use the results of part 1 to complete the ste-column table by first entering the appropriate adjustments for Items through and then completing the Adjusted Trial Balance columns. (Hint: Item requires two adjustments) Adjuntad Trial Balance Debit Credit Account Title Cash Accounts receivable Allowance for doubtful accounts Merchandise inventory Trucks Acoum deprec-Trucks Equipment Acour deprec-Equip Accounts payable Estim warranty lability Uneamed services Interest payable Long-term noles payable Common stock Retained earings Dividends Extermination services revenue Interest revenue BUG-OFF EXTERMINATORS December 31, 2018 Unadjusted Trial Balance Adjustments Debit Credit Debit Credit $18.200 3.800 $ 822 12.100 30.700 0 52.000 11.200 4,000 300 0 0 14,500 11.000 49,200 12,000 56.000 Sales 870 79.415 44,200 cost of goods sold Deprec, expense Trucks Deprec. expense-Equip Winges experte Interest expense Rent expense Bad debts expense Mecaneus expense Repairs expense Us expense Warranty expense Totals 0 0 33.000 0 7.800 0 1,207 6.500 5.900 0 5228,407 $226 407 Req1 Res> inces foto adjustments for ite then completing the Adjusted Trial Balance columns. (Hint: Item b requires two adjustments.) 3. Prepare journal entries to record the adjustments entered 4n the six-column table. Assume Bug-Off's adjuste Merchandise Inventory matches the year-end physical count. 4-a. Prepare a single-step income statement for year 2018. 4-6. Prepare a statement of retained earnings (cash dividends during 2018 were $10,000) for year 2018. 4-c. Prepare a classified balance sheet as at 2018 Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req3 Reg 4 Req 48 Reg 4C Prepare journal entries to record the adjustments entered in the six-column table. Assume Bug-Off's adjusted balan Inventory matches the year end physical count. (If no entry is required for a particular transaction, select "No journe the first account held. Do not round your intermediate calculations.) View transaction ist Journal entry worksheet 2 3 4 5 6 7 8 Record the adjustment to the Cash account. Note: Enter debits before credits Transaction General Journal Debit Credit (a) Record entry Clear entry View general journal ances Req1 Reg 2 Reg 3 Reg 4 Req 48 Req 4C Prepare a single-step Income statement for year 2018. BUG-OFF EXTERMINATORS Income Statement For Year Ended December 31, 2018 Revenues Total revenues Expenses Interest expense Total expenses 4- Prepare a single-step income statement for year 2018 4-6. Prepare a statement of retained earnings (cash dividends during 2018 were $10,000) for year 2018. 4-c. Prepare a classified balance sheet as at 2018 Complete this question by entering your answers in the tabs below. Rea 1 Reg 2 Reg 3 R4A Ree 48 Reg 40 Use the results of part 1 to complete the ste-column table by first entering the appropriate adjustments for Items through and then completing the Adjusted Trial Balance columns. (Hint: Item requires two adjustments) Adjuntad Trial Balance Debit Credit Account Title Cash Accounts receivable Allowance for doubtful accounts Merchandise inventory Trucks Acoum deprec-Trucks Equipment Acour deprec-Equip Accounts payable Estim warranty lability Uneamed services Interest payable Long-term noles payable Common stock Retained earings Dividends Extermination services revenue Interest revenue BUG-OFF EXTERMINATORS December 31, 2018 Unadjusted Trial Balance Adjustments Debit Credit Debit Credit $18.200 3.800 $ 822 12.100 30.700 0 52.000 11.200 4,000 300 0 0 14,500 11.000 49,200 12,000 56.000 Sales 870 79.415 44,200 cost of goods sold Deprec, expense Trucks Deprec. expense-Equip Winges experte Interest expense Rent expense Bad debts expense Mecaneus expense Repairs expense Us expense Warranty expense Totals 0 0 33.000 0 7.800 0 1,207 6.500 5.900 0 5228,407 $226 407 Req1 Res> inces foto adjustments for ite then completing the Adjusted Trial Balance columns. (Hint: Item b requires two adjustments.) 3. Prepare journal entries to record the adjustments entered 4n the six-column table. Assume Bug-Off's adjuste Merchandise Inventory matches the year-end physical count. 4-a. Prepare a single-step income statement for year 2018. 4-6. Prepare a statement of retained earnings (cash dividends during 2018 were $10,000) for year 2018. 4-c. Prepare a classified balance sheet as at 2018 Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req3 Reg 4 Req 48 Reg 4C Prepare journal entries to record the adjustments entered in the six-column table. Assume Bug-Off's adjusted balan Inventory matches the year end physical count. (If no entry is required for a particular transaction, select "No journe the first account held. Do not round your intermediate calculations.) View transaction ist Journal entry worksheet 2 3 4 5 6 7 8 Record the adjustment to the Cash account. Note: Enter debits before credits Transaction General Journal Debit Credit (a) Record entry Clear entry View general journal ances Req1 Reg 2 Reg 3 Reg 4 Req 48 Req 4C Prepare a single-step Income statement for year 2018. BUG-OFF EXTERMINATORS Income Statement For Year Ended December 31, 2018 Revenues Total revenues Expenses Interest expense Total expenses