Bug-Off Exterminstors 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. BUG-OFF EXTERMINATORS December 31, 2013 Unadjusted Trial Bolance S 16,200 4.700 Accounts receivable Allowance for doubtful ccounts $ 814 12,000 31,020 Trucks Accum. depreciation-Trucks Equipment Accum. depreciation-Equipment Accounts payable Estimated warranty liability Uneorned services revenue 46,980 14.200 6,800 Long-term notes payable D. Buggs, Capital D. Buggs, Withdrawals Extermination services revenue Interest revenue Sales (of merchandise) Cost of goods sold Depreciation expense-Trucks 14,000 62,139 868 71,126 46.700 expense-Equipment oges expense 36,500 Rent expense 9,100 Bad debts expense Miscellaneous ex epairs expense Utilities expense Warranty expense pense 9,900 4,900 Totals $230,537 $230,537 The following information in through h applies to the company at the end of the current a. The bank reconciliation as of December 31, 2013, includes the following facts. 13.400 16,200 1.980 Cash balance per bank Cash balance per books Outstanding checks Deposit in transit Interest eaned (on bank occount) Bank service charges (miscellaneous Reported on the bank statement is a conceled 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 occounts totaling $669 should be written off as uncollectible. Using an oging of receivables, the company determines that the ending balance of the Allowance for Doubtful Accounts should be $704. c. A truck is purchased and placed in service on January 1, 2013. lts cost is being deprecisted with the straight-line method using the following facts and estimates. 31,020 Original cost Expected salvage6,700 Useful life (years) value d. Two items of equipment (a sprayer and an injector) were purchased and put into service in esrly January 2011. They are being deprecisted with the stroight-line method using these focts ond estimotes. Original cost Expected salvage $28,880 $18,100 3,600 1,800 value Useful life (years) e. On August 1, 2013, the company is paid $5,040 cash in advance to provide monthly service for an apartment complex for one year. The company began providing the services in August. When the cosh was received, the full amount was credited to the Extermination Services Revenue sccount f. The compony offers o warranty for the services it sells. The expected cost of providing warranty service is 1.5% of the extermination services revenue of $56,250 for 2013. No warranty expense has been recorded for 2013. All costs of servicing warranties in 2013 were properly debited to the Estimsted Warronty Liability account. g. The $14,000 long-term note is an 6%, 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 $12000. Bug-Off uses a perpetual inventory system Required: 1. Use the preceding information to determine amounts for the following items. a. Correct (reconciled) ending balance of Cash, and the amount of the omitted check. Reconciled balance Omitted check b. Adjustment needed to obtsin the correct ending balance of the Allowance for Doubtful Accounts. Necessary adjustment expens e for the truck used during year 2013. Depreciation expense d. Deprecistion expense for the two items of equipment used during year 2013. SprayerInjector Depreciation expense e. The adjusted 2013 ending balances of the Extermination Services Revenue and Uneaned Services Revenue accounts. (Do not round your Intermediate calculations.) Services Revenue Sevices Revenue Unearned Ending balances after adjustment f. The adjusted 2013 ending balances of the accounts for Warranty Expense and Estimated Warranty Liability. WarrantyE8 Expense Warranty Llability Estimated Ending balances after adjustment g. The odjusted 2013 ending balances of the accounts for Interest Expense and Interest Payable. Intereet Interest ExpensePayable Ending balances after adjustment 2 Use the results of part 1 to complete the six-column table by first entering the oppropriate odjustments for items through gand then completing the odjusted tria balance columns. (Hint: Item b requires two odjustments.) (Do not round your BUG-OFF EXTERMINATORS Decamber 31, 2013 Adjustmenta Trial Balance Trial Balance Creait Debit Crealt Deit Credi Account Title Debit $ 16,200 Accounts receivable 4,700 lowance for doubtful accounts $ 814 12,000 Trucks 31,020 Accum. deprec-Trucks 46,980 14,200 8,800 1,390 Accum. deprec. Equip Accounts payable Estim warranty liability Unearned services rev Interes: paryable Long-lerm notes payable D. Buggs, Capital D. Buggs, Withdrawals Extermination services revenue Interest revenue 14,000 62,139 11,300 59,200 Cost of goods sold Deprec. expense Trucks Deprec. expense Equip Wages expense Interest expense Rent expense Bad debts expenee Miscellaneous expense Repairs expense Uilities expense Warranty expense Tatas 46,700 36,500 9,100 1,237 9,900 4,900 $230,537 230,537 4.1 Prepare a single-step income statement for year 2013. BUG-OFF EXTERMINATORS Income Statement For Year Ended Dacember 31, 2013 Revenues Tatal revenues Expenses Tatal expenses 4.2 Prepare a statement of owner's equity (cash withdrawals during 2013 were $11,300) for year 2013 and there were no investments by the owner in the current year. BUG-OFF EXTERM NATORS Statament of Owner's Equity For Year Ended December 31, 2013 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 Aasets Current assets: Tatal current assets Plant assets: Tatal plant assets Tatal assets Llabilitle8 Current fabilities Tatal current fablities Long-lerm liabilities: Tatal liabilties Equity Tatal liabilities and equity