Comprehensive Problem Bug-Off Exterminators 5,500 a 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 Cash $ 20,000 Accounts receivable Allowance for doubtful accounts $ 858 Merchandise inventory 8,700 Trucks 47,eee Accum. depreciation-Trucks Equipment 92,400 Accun, depreciation Equipment 24,200 Accounts payable 5,750 Estimated warranty liability 2,150 Unearned services revenue e Interest payable Long-term notes payable 22,500 D. Buggs, Capital 93,800 D. Buggs, withdrawals 25,000 Extermination services revenue 88,275 Interest revenue 902 Sales (of merchandise) 111,551 Cost of goods sold 50, 80e Depreciation expense-Trucks Depreciation expense-Equipment Mages expense se, Interest expense Rent expense 24.ee Dad debts expense Miscellaneous expense 1,286 Repairs expense 15,500 Utilities expense 9,800 Warranty expense Totals $349,986 $349,986 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. 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 (niscellaneous expense) $16, 600 20,000 2,550 3,200 82 30 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.) 1 b. An examination of customers' accounts shows that accounts totaling $694 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 $775. 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) $19,500 $14.000 4 d. Two items of equipment (a sprayer and an injecton) were purchased and put into service in early January 2017. They are being depreciated with the straight-line method using these facts and estimates. Sprayer Injector Original cost $19.000 $21,000 Expected salvage Value $ 3.000 $ 4,000 Useful life (years) S e. On September 1, 2019, the company is paid $20,700 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 solls The expected cost of providing warranty service is 4% of the extermination Services revenue of $74,475 for 2019. No warranty expenso has been recorded for 2019. All costs of servicing warranties in 2019 were property debited to the Estimated Warranty Liability account. g. The $22.500 long-term note is an 8% five-year, Interest bearing note with interest payablo annually on December 31. The note was signed with First National Bank on December 31, 2019 h. The ending inventory of marchandise is counted and determined to have a cost of $8.700. Eug-offuses 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. 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 Waranty Liability g. The adjusted 2019 ending balances of the accounts for Interest Expense and Interest Payablel 2. Use the results of part 1 to complete the six-column table by first entering the appropriate adjustments for Items a through ga 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 a statement of owner's equity (cash withdrawals during 2019 were $25,000) for year 2019 and there were no rivest by the owner in the current year. 4c. Prepare a classified balance sheet as at 2019, Complete this question by entering your answers in the tabs below. Reg Reg 2 Reg 3 Req 4A Reg 43 Reg 4 Journal entry worksheet Journal entry worksheet Journal entry worksheet Journal entry worksheet 1 2 3 5 6 7 8 8 > Record depreciation on the truck. Note: Enter debits before credits. Transaction General Journal Debit Credit (c) Record entry Clear entry View general Journal w Journal entry worksheet Journal entry worksheet Journal entry worksheet Journal entry worksheet 1 2 3 4 5 6 7 8 Record the adjustment for interest. Note. Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general Journal Req 1 Reg 2 Reg 3 Req 4A Req 4B Reg 4C Prepare a single-step income statement for year 2019, BUG-OFF EXTERMINATORS Income Statement For Year Ended December 31, 2019 Revenues Extermination services revenue Interest revenue 74,475 984 Sales 111,551 $ 187,010 50.800 Total revenues Expenses Cost of goods sold Depreciation expense Trucks Depreciation expense-Equipment Wages expense Rent expense Bad debts expense Miscellaneous expenses Repairs expense Utilities expense Warranty expense Total expenses 50.800 138,210 Complete this question by entering your answers in the tabs below. Req 1 Req z Reg 3 Reg 4A Reg 4B Req 40 Prepare a statement of owner's equity (cash withdrawals during 2019 were $25,000) for ye investments by the owner in the current year. BUG-OFF EXTERMINATORS Statement of Owner's Equity For Year Ended December 31, 2019 0 BLO OFFEEXTERIOR Do, 010 Arcato Current Ascots: 0 Total current assets Plant assets 0 3 Total plantas Total assets Llabilities Current abilities Tous contactos Long-term labs Tities Equity Toties and outy Rog 48