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 Cash Trial Balance $ 19,800 Accounts receivable 5,400 Allowance for doubtful accounts $ 856 Merchandise inventory 15,900 Truck 46,000 Accum. depreciation Trucks 0 Equipment 87,800 Accum. depreciation Equipment 23,400 Accounts payable 5,700 Estimated warranty liability 2,100 Unearned services revenue Interest payable 0 Long-term notes payable 29,000 Cormon stock 24,000 Retained earnings 67,500 Dividende 24,000 Extermination services revenue 88,000 Interest revenue 900 Sales (of merchandise) 105,826 Coat of goods sold 50, 500 Depreciation expense-Trucks Depreciation expense-Equipment Wages expenne 49,000 Interest expense 0 0 o o Prey 1 of 1 !!! Score answer > Useful life (years) e. On September 1, 2019, the company is paid $19,500 cash in advance to provide montry 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 $75,000 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 $22.000 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 $15,900. Bug-Off uses a perpetual inventory Prev 1 of 1 !!! Score answer > d. Depreciation expense for the two items or equipment used during year 201 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, al nntries in record the dustments entered on the six-column table. Assume Bug-Off's adjusted balance for e. 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, 9. The adjusted 2019 ending balances of the accounts for Interest Expense and Interest Payable. Show less Book Print a. rences Reconciled balance Omitted check Necessary adjustment Depreciation expense b C. d. Sprayer Injector Depreciation expense Services Revenue Unearned Services Revenue Ending balances after adjustment Warranty Expenso Estimated Warranty Liability 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 9 Interest Expense Interest Payable Ending balances after adjustment
