Comprehensive Problem Bug-Off Exterminators 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 $ 17,200 Accounts receivable 4,100 Allowance for doubtful accounts $ 830 Merchandise inventory 11,500 Trucks 33,000 Accum. depreciationTrucks 0 Equipment 46,000 Accum. depreciationEquipment 13,000 Accounts payable 5,050 Estimated warranty liability 1,450 Unearned services revenue 0 Interest payable 0 Long-term notes payable 15,500 D. Buggs, Capital 61,600 D. Buggs, Withdrawals 11,000 Extermination services revenue 61,350 Interest revenue 874 Sales (of merchandise) 72,476 Cost of goods sold 46,600 Depreciation expenseTrucks 0 Depreciation expenseEquipment 0 Wages expense 36,000 Interest expense 0 Rent expense 10,000 Bad debts expense 0 Miscellaneous expense 1,230 Repairs expense 8,500 Utilities expense 7,000 Warranty expense 0 Totals $ 232,130 $ 232,130 The following information in a through h applies to the company at the end of the current year. The bank reconciliation as of December 31, 2019, includes the following facts. Cash balance per bank $ 15,200 Cash balance per books 17,200 Outstanding checks 1,850 Deposit in transit 2,500 Interest earned (on bank account) 54 Bank service charges (miscellaneous expense) 16 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.) An examination of customers accounts shows that accounts totaling $680 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 $705. 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 $ 32,500 Expected salvage value $ 8,400 Useful life (years) 4 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. Sprayer Injector Original cost $ 27,800 $ 18,200 Expected salvage value $ 3,000 $ 2,600 Useful life (years) 8 5 On September 1, 2019, the company is paid $3,900 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. The company offers a warranty for the services it sells. The expected cost of providing warranty service is 4% of the extermination services revenue of $58,750 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. The $15,500 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. The ending inventory of merchandise is counted and determined to have a cost of $11,500. Bug-Off uses a perpetual inventory system. Required: 1. Determine amounts for the following items: Correct (reconciled) ending balance of Cash; and the amount of the omitted check. Adjustment needed to obtain the correct ending balance of the Allowance for Doubtful Accounts. Depreciation expense for the truck used during year 2019. Depreciation expense for the two items of equipment used during year 2019. The adjusted 2019 ending balances of the Extermination Services Revenue and Unearned Services Revenue accounts. The adjusted 2019 ending balances of the accounts for Warranty Expense and Estimated Warranty Liability. 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 b requires two adjustments. 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. 4a. Prepare a single-step income statement for year 2019. 4b. Prepare a statement of owners equity (cash withdrawals during 2019 were $11,000) for year 2019 and there were no investments by the owner in the current year. 4c. Prepare a classified balance sheet as at 2019.

1. Correct (reconciled) ending balance of Cash; and the amount of the omitted check.
2. Adjustment needed to obtain the correct ending balance of the Allowance for Doubtful Accounts.
3. Depreciation expense for the truck used during year 2019.
4. Depreciation expense for the two items of equipment used during year 2019.
5. The adjusted 2019 ending balances of the Extermination Services Revenue and Unearned Services Revenue accounts. (Do not round your intermediate calculations.)
6. The adjusted 2019 ending balances of the accounts for Warranty Expense and Estimated Warranty Liability.
7. The adjusted 2019 ending balances of the accounts for Interest Expense and Interest Payable.

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a.	Reconciled balance	$15,850
	Omitted check	$1,388
b.	Necessary adjustment	$555
c.	Depreciation expense	$6,025
d.		Sprayer	Injector
	Depreciation expense
e.		Services Revenue	Unearned Services Revenue
	Ending balances after adjustment
f.		Warranty Expense	Estimated Warranty Liability
	Ending balances after adjustment
g.		Interest Expense	Interest Payable
	Ending balances after adjustment