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, 2013.

PLEASE ANSWER G1 G2 G3 G4.1 G4.2 G4.3

BUG-OFF EXTERMINATORS
December 31, 2013
	Unadjusted Trial Balance
Cash	$	17,100
Accounts receivable		5,000
Allowance for doubtful accounts				$	811
Merchandise inventory		13,500
Trucks		31,780
Accum. depreciationTrucks					0
Equipment		47,830
Accum. depreciationEquipment					12,300
Accounts payable					5,100
Estimated warranty liability					1,300
Unearned services revenue					0
Interest payable					0
Long-term notes payable					14,400
D. Buggs, Capital					71,192
D. Buggs, Withdrawals		11,600
Extermination services revenue					59,550
Interest revenue					871
Sales (of merchandise)					72,926
Cost of goods sold		48,300
Depreciation expenseTrucks		0
Depreciation expenseEquipment		0
Wages expense		36,300
Interest expense		0
Rent expense		9,900
Bad debts expense		0
Miscellaneous expense		1,240
Repairs expense		9,300
Utilities expense		6,600
Warranty expense		0
Totals	$	238,450		$	238,450

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, 2013, includes the following facts.

Cash balance per bank	$	13,300
Cash balance per books		17,100
Outstanding checks		1,860
Deposit in transit		2,450
Interest earned (on bank account)		46
Bank service charges (miscellaneous expense)		24

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 $678 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, 2013. Its cost is being depreciated with the straight-line method using the following facts and estimates.

Original cost	$	31,780
Expected salvage value		7,100
Useful life (years)		4

d.	Two items of equipment (a sprayer and an injector) were purchased and put into service in early January 2011. They are being depreciated with the straight-line method using these facts and estimates.

		Sprayer			Injector
Original cost	$	29,080		$	18,750
Expected salvage value		4,600			2,300
Useful life (years)		8			5

e.	On August 1, 2013, the company is paid $4,440 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 1.5% of the extermination services revenue of $56,960 for 2013. No warranty expense has been recorded for 2013. All costs of servicing warranties in 2013 were properly debited to the Estimated Warranty Liability account.

g.	The $14,400 long-term note is an 9%, 5-year, interest-bearing note with interest payable annually on December 31. The note was signed with First National Bank on December 31, 2013.

h.	The ending inventory of merchandise is counted and determined to have a cost of $13,500. Bug-Off uses a perpetual inventory system

g.	The adjusted 2013 ending balances of the accounts for Interest Expense and Interest Payable. (below are the results for part 1)

.

3.	Prepare journal entries to record the adjustments entered on the six-column table. Assume Bug-Offs 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.)

QC 40090 rev: 11-07-13

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.) (Do not round your intermediate calculations.) December 31, 2013 Unadjusted Adjustments Trial Balance Trial Balance Adjusted Account Title Debit Credit Debit Credit Debit Credit Cash 17,100 Accounts receivable Allowance for doubtful accounts Merchandise inventory 13,500 Trucks Accum. deprec- Trucks Equipment Accum. deprec.-Equip Accounts payable Estim. warranty liabili Unearned services rev Interest payable Long-term notes 5,000 $ 811 31,780 47,830 12,300 5,100 1,300 0 14,400 71,192 ayable D. Buggs, Capital D. Buggs, Withdrawals 11,600 Extermination services revenue Interest revenue Sales Cost of goods sold Deprec. expense- Trucks Deprec. expense Equip Wages expense Interest expense Rent expense Bad debts expense Miscellaneous expense Repairs expense Utilities expense Warranty expense 59,550 871 72,926 48,300 0 0 36,300 0 9,900 0 1,240 9,300 6,600 0 4.1 Prepare a single-step income statement for year 2013. BUG-OFF EXTERMINATORS Income Statement For Year Ended December 31, 2013 Revenues Total revenues Expenses 0 Total expenses 0 0 4.2 Prepare a statement of owner's equity (cash withdrawals during 2013 were $11,600) for year 2013 and there were no investments by the owner in the current vear. BUG-OFF EXTERMINATORS Statement of Owner's Equity For Year Ended December 31, 2013 0 0 4.3Prepare a Classified balance sheet as at 2013. (Negative amounts should be indicated by a minus sign. Do not round your intermediate calculations.) BUG-OFF EXTERMINATORS Balance Sheet December 31, 2013 Assets Current assets 0 Total current assets Plant assets 0 0 0 0 Total plant assets Total assets Liabilities Current liabilities: Total current liabilities 0 Long-term liabilities Total liabilities 0 Equity Total liabilities and equity 0 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.) (Do not round your intermediate calculations.) December 31, 2013 Unadjusted Adjustments Trial Balance Trial Balance Adjusted Account Title Debit Credit Debit Credit Debit Credit Cash 17,100 Accounts receivable Allowance for doubtful accounts Merchandise inventory 13,500 Trucks Accum. deprec- Trucks Equipment Accum. deprec.-Equip Accounts payable Estim. warranty liabili Unearned services rev Interest payable Long-term notes 5,000 $ 811 31,780 47,830 12,300 5,100 1,300 0 14,400 71,192 ayable D. Buggs, Capital D. Buggs, Withdrawals 11,600 Extermination services revenue Interest revenue Sales Cost of goods sold Deprec. expense- Trucks Deprec. expense Equip Wages expense Interest expense Rent expense Bad debts expense Miscellaneous expense Repairs expense Utilities expense Warranty expense 59,550 871 72,926 48,300 0 0 36,300 0 9,900 0 1,240 9,300 6,600 0 4.1 Prepare a single-step income statement for year 2013. BUG-OFF EXTERMINATORS Income Statement For Year Ended December 31, 2013 Revenues Total revenues Expenses 0 Total expenses 0 0 4.2 Prepare a statement of owner's equity (cash withdrawals during 2013 were $11,600) for year 2013 and there were no investments by the owner in the current vear. BUG-OFF EXTERMINATORS Statement of Owner's Equity For Year Ended December 31, 2013 0 0 4.3Prepare a Classified balance sheet as at 2013. (Negative amounts should be indicated by a minus sign. Do not round your intermediate calculations.) BUG-OFF EXTERMINATORS Balance Sheet December 31, 2013 Assets Current assets 0 Total current assets Plant assets 0 0 0 0 Total plant assets Total assets Liabilities Current liabilities: Total current liabilities 0 Long-term liabilities Total liabilities 0 Equity Total liabilities and equity 0