Bug-Off Exterminators provides pest control services and sells extermination products manufactured by other companies. Following is the company's unadjusted trial balance as of December 31, 2021. December 31, 2021 Unadjusted Trial Balance Debit Credit Cash $ 17,000 Accounts receivable 4,000 Allowance for doubtful accounts $ 828 Merchandise inventory 11,700 Trucks 32,000 Accumulated depreciation-Trucks 0 Equipment 45,000 Accumulated depreciation Equipment 12,200 Accounts payable 5,000 Estimated warranty liability 1,400 Unearned services revenue 0 Interest payable O Long-term notes payable 15,000 Common stock 20.000 Retained earnings 39,700 Dividends 10,000 Externination services revenue 60,000 Interest revenge 872 Sales (of merchandise) 71,026 Cost of goods sold 46,300 Depreciation expense Trucks 0 Depreciation expense--Equipment O Wages expense 35,000 Interest expense O Rent expense 9.000 Bad debts expense 0 Miscellaneous expense 1.226 Repairs expense 8.000 Utilities expense 6,800 Warranty expense Totala $ 226,026 5. 226,026 a. The bank reconciliation as of December 31, 2021, Includes the following facts. Cash balance per bank $ 15,100 Canh ba la re Pet book | 17,000 Outstanding checks 1,800 Deposit in transit 2,450 Interest earned (on bank account) 52 Hank service charges (Miscellaneous expense) 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, 2021. Its cost is being depreciated with the straight-line method using the following facts and estimates Original cost $ 32,000 Expected salvage value $ 3.000 Useful lite tyears) d. Two items of equipment (o sprayer and an injector) were purchased and put into service in early January 2019. They are being depreciated with the straight-line method using these facts and estimates. Sprayer Injector Original cost $ 27,000 $ 18,000 Expected salvage value $3,000 $ 2,500 Useful life (years) e. On August 1, 2021, 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 1. The company offers a warranty for the services itsells. The expected cost of providing warranty service is 25% of the extermination services revenue of $57760 for 2021. No warranty expense has been recorded for 2021 All costs of servicing warranties in 2021 were properly debited to the Estimated Warranty Llability account g. The $15,000 long-term note is an 8%, five-year, interest-bearing note with interest payable annually on December 31. The note was signed with First National Bank on December 31, 2021. h. The ending inventory of merchandise is counted and determined to have a cost of $11,700. Bug-Off uses a perpetual inventory system Required: 1. Determine amounts for the following items: a. Correct (reconciled) ending balance of Cash, and the amount of the omitted check, b. Adjustment needed to obtain the correct ending balance of the Allowance for Doubtful Accounts c. Depreciation expense for the truck used during year 2021 d. Depreciation expense for the two items of equipment used during year 2021. e. The adjusted 2021 ending balances of the Extermination Services Revenue and Unearned Services Revenue accounts The adjusted 2021 ending balances of the Warranty Expense and the Estimated Warranty Liability accounts. 9. The adjusted 2021 ending balances of the Interest Expense and the Interest Payable accounts 2. Use the results of part 1 to complete the six-column table by first entering the appropriate adjustments for items a through gand 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 2021. 4b. Prepare the statement of of retained earnings (cash dividends during 2021 were $10,000), for 2021. 4c. Prepare a classified balance sheet for December 31, 2021. Determine amounts for the following items: a. Correct (reconciled) ending balance of Cash; and the amount of the omitted check. b. Adjustment needed to obtain the correct ending balance of the Allowance for Doubtful Accounts. c. Depreciation expense for the truck used during year 2021. d. Depreciation expense for the two items of equipment used during year 2021. e. The adjusted 2021 ending balances of the Extermination Services Revenue and Unearned Services Revenue accounts. f. The adjusted 2021 ending balances of the Warranty Expense and the Estimated Warranty Liability accounts. 9. The adjusted 2021 ending balances of the Interest Expense and the Interest Payable accounts. Show less a. Reconciled balance of cash a. Omitted check b. Necessary adjustment c. Depreciation expense Sprayer Injector d. Depreciation expense Extermination Unoamned Services Services Revenue Revenue c. Ending balances after adjustment Warranty Expense Estimated Warranty Liability 1. Ending balances after adjustment Interest Expense Interest Payable g. Ending balances after adjustment Adjusted Trial Balance Debit Credit Account Title BUG-OFF EXTERMINATORS December 31, 2021 Unadjusted Trial Balance Adjustments Debit Credit Debit Credit $ 17,000 4,000 $ 828 11,700 32,000 0 45,000 12,200 5,000 1,400 Cash Accounts receivable Allowance for doubtful accounts Merchandise inventory Trucks Accumulated depreciation-Trucks Equipment Accumulated depreciation Equipment Accounts payable Estimated warranty liability Uneamed services revenue Interest payable Long-term notes payable Common stock Retained earnings Dividends Extermination services revenue Interest revenue Sales Cost of goods sold Depreciation expense-Trucks Depreciation expense Equipment 0 0 15,000 20,000 39,700 10,000 60,000 872 71,026 46,300 0 0 872 71,026 46,300 0 0 35,000 0 Interest revenue Sales Cost of goods sold Depreciation expense-Trucks Depreciation expense-Equipment Wages expense Interest expense Rent expense Bad debts expense Miscellaneous expense Repairs expense Utilities expense Warranty expense Totals 9,000 0 1,226 8,000 6,800 0 $ 226,026 $ 226,026 $ 0 S 0 0 $ 0 Journal entry worksheet 1 2 3 4 5 6 7 8 Record the adjustment to the Cash account. Note: Enter debits before credits Transaction General Journal Debit Credit Journal entry worksheet 1 > 2 3 4 5 6 7 8 Record the write off of uncollectible accounts. Note: Enter debits before credits. General Journal Debit Credit Transaction (61) Record entry Clear entry View general Journal Journal entry worksheet 2 N 4 5 7 6 7 8 SED Record the adjustment for bad debts. Note: Enter debits before credits. General Journal Debit Credit Transaction (62) Record entry Clear entry View general Journal Record depreciation on the equipment. Note: Enter debits before credits. General Journal Debit Credit Transaction (d) Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 4 en 5 7 8 Recorded the adjustment for unearned revenues. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet BUG-OFF EXTERMINATORS Statement of Retained Earnings For Year Ended December 31, 2021 0 $ 0 BUG-OFF EXTERMINATORS Balance Sheet 1 December 31, 2021 Assets Current assets: 35 points eBook 0 Print References 0 0 Total current assets Plant assets: 0 0 0 Total plant assets Total assets $ 0 Liabilities Current liabilities: ook $ rint Total current liabilities rences Long-term liabilities: 0 Total liabilities Equity 0 Total equity Total liabilities and equity $