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Determine amounts for the following items: Bug - Off Exterminators provides pest control services and sells extermination products manufactured by other companies. Following is the

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Determine amounts for the following items: 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 31,2026.
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 31,2026, includes the following facts. a. The bank reconciliation as of December 31,2026, includes the following facts.
\table[[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.)
b. 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.
c. A truck is purchased and placed in service on January 1,2026. Its cost is being depreciated with the straight-line method using the following facts and estimates.
\table[[Original cost,$33,000],[Expected salvage value,$8,400],[Useful life (years),4]]
d. Two items of equipment (a sprayer and an injector) were purchased and put into service in early January 2024. They are being depreciated with the straight-line method using these facts and estimates.
\table[[,Sprayer,Injector],[Original cost,$27,200,$18,400],[Expected salvage value,$3,000,$2,600],[Useful life (years),8,5]]
e. On September 1,2026, 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.
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 $59,400 for 2026. No warranty expense has been recorded for 2026. All costs of servicing warranties in 2026 were properly debited to the Estimated Warranty Liability account.
g. The $16,000 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 31,2026.
h. The ending inventory of merchandise is counted and determined to have a cost of $11,900. Bug-Off uses a perpetual inventory system.
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d. Two items of equipment (a sprayer and an injector) were purchased and put into service in early January 2024.
They are being depreciated with the straight-line method using these facts and estimates.
e. On September 1,2026, 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.
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 $59,400 for 2026. No warranty expense has been recorded for 2026. All
costs of servicing warranties in 2026 were properly debited to the Estimated Warranty Liability account.
g. The $16,000 long-term note is an 8%, five-year, interest-bearing note with interest payable annually on December
The note was signed with First National Bank on December 31,2026.
h. The ending inventory of merchandise is counted and determined to have a cost of $11,900.
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 2026.
Depreciation expense for the two items of equipment used during year 2026.
The adjusted 2026 ending balances of the Extermination Services Revenue and Unearned Services Revenue accounts.
Note: Do not round your intermediate calculations.
The adjusted 2026 ending balances of the Warranty Expense and the Estimated Warranty Liability accounts.
The adjusted 2026 ending balances of the Interest Expense and the Interest Payable accounts.
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