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 Unadjusted Trial Balance $ 18, 200 4,600 $ 840 13,500 38,00 51, eee 17, eee 5,300 1,7ee 21,00 16,000 57,100 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 Interest revenue Sales (of merchandise) 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 16, eee 72,00 884 73,826 48,100 41, eee 15,00 1,25 11, eee 8, eee $ 265.658 $265.658 The following Information in a through happlies 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) $15,700 18,209 2,100 2,750 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 $685 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 $730. 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) $ 35,00 $10,400 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 $31,800 $ 19, 200 $ 3,200 $ 3,100 e. On September 1, 2019, the company is paid $9,900 cash in advance to provide monthly service for an apartment complex for one year. The company began providing the services in September. When the cash was received, the full amount was credited to the Extermination Services Revenue account. f. The company offers a warranty for the services It sells. The expected cost of providing warranty service is 2.5% of the extermination services revenue of $65,400 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 $18,000 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 $13,500. 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 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 $16,000) for 2019 4c. Prepare a classified balance sheet as at 2019. Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Req3 Req 4A Reg 4B 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. 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. Show less Reconciled balance Omitted check Necessary adjustment Depreciation expense Sprayer Injector Depreciation expense Services Revenue Unearned Services Revenue Ending balances after adjustment Warranty Expense Estimated Warranty Liability Ending balances after adjustment Interest Expense Interest Payable Ending balances after adjustment Req1 Req 2 > Req 1 Reg 2 Reg 3 Reg 4A Reg 4B Reg 4C Use the results of part 1 to complete the six-column table by first entering the appropriate adjustments for items a throug and then completing the adjusted trial balance columns. Hint: Item b requires two adjustments. (Do not round your intermediate calculations.) Adjusted Trial Balance Debit Credit Account Title Cash $ BUG-OFF EXTERMINATORS December 31, 2019 Unadjusted Trial Balance Adjustments Adjustments Debit Credit Debit Credit 18,200 4.800 $ 840 13,500 38,000 0 51,000 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 17,000 5.300 1,700 21,000 16.000 57.100 16,000 72.000 884 Sales 73,826 48,100 Cost of goods sold Deprec. expense-Trucks Deprec. expense-Equip Wages expense Interest expense Rent expense Bad debts expense 15,000 Miscellaneous expense 1.250 Repairs expense Utilities expense Warranty expense 11,000 8,000 Totals $ 265,650 S 265,850 Reg 1 Req 2 Reg 3 Reg 4A Reg 4B Reg 40 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 1 Record the adjustment to the Cash account. 2 Record the write off of uncollectible accounts. 3 Record the adjustment for bad debts. 4 Record depreciation on the truck. 5 Record depreciation on the equipment. Credit 6 Recorded the adjustment for unearned revenues. 7 Record the estimated warranty expense. 8 Record the adjustment for interest. Note : = journal entry has been entered Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req3 Reg 4A Reg 4B Reg 4C Prepare a single-step income statement for year 2019. BUG-OFF EXTERMINATORS Income Statement For Year Ended December 31, 2019 Revenues Total revenues Expenses Total expenses Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req3 Reg 4A Reg 4A Reg 4B Reg 43 Reg 40 Reg 4C Prepare the statement of retained earnings (cash dividends during 2019 were $16,000) for 2019. BUG-OFF EXTERMINATORS Statement of Retained Earnings For Year Ended December 31, 2019 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 Balance Sheet December 31, 2019 Assets Current assets: Total current assets Plant assets: Total plant assets Total assets Liabilities Current liabilities: Total current liabilities Long-term liabilities: Total liabilities Equity Total liabilities and equity