J ok 9 nt 5 ences 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, 2021. Cash Accounts receivable Allowance for doubtful accounts Merchandise inventory Trucks Accumulated depreciation-Trucks Equipment Accumulated depreciation-Equipment Accounts payable Estimated warranty liability Unearned services revenue Interest payable Long-term notes payable Common stock Retained earnings Dividends Extermination services revenue December 31, 2021 Interest revenue Sales (of merchandise) Cost of goods sold Depreciation expense-Trucks Depreciation expense-Equipment Wages expense Interest expense Rent expense Bad debts expense Miscellaneous expense Repairs expense Utilities expense Warranty expense Totals Unadjusted Trial Balance Debit Credit $ 17,200 3,870 12,000 33,000 45,600 11,000 46,600 0 0 36,000 0 10,000 0 1,230 8,500 7,000 0 $ 232,000 $ 830 0 12,370 5,050 1,450 0 0 16,000 22,000 39,600 62,000 874 71,826 $ 232,000

Eug-Ort Exterminators provides pest control services and sels extermination products manufactured by other companies. following is the company's unadjucted tris batance as of December 31,2021 . The following information in a through h applies to the company at the end of the current year: a. The bank reconcilation as of December 31,2021 , includes the following facts. Reported on the bank statement is a canceled check that the company falled 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 shoula be written ofr as uncollectible Using an aging of recelvables, the company determines that the ending balance of the Allowance for-Doubtrul Accounts should be $705. c. A truck is purchased and placed in service on January 1,2021 . Its cost is being depreclated with the straight-ine method using the following facts and estimates d. Two items of equipment (a sprayer and an injector) were purchased and put into service in early January 2019 . They are being depreclated with the straght-line method using these facts and estimates. e. On September 1,2021 , 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 recelved, the full amount was credited to the Extermination Services Revenue account 1. 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 2021 . No warranty expense has been recorded for 2021 All costs of serving warranties in 2021 were properly debited to the Estimated Warranty Uability account g. The $15,000 iong-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, 2021 h. The ending inventory of merchandise is counted and determined to have a cost of $11,900 Eug-off uses 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. c. Depreclation expense for the truck used during year 2021. d. Depreclation expense for the two items of equipment used during year 2021 e. The adjusted 2021 ending balances of the Extermination Services Revenue and Unearned Services Revenue accounts. t. The adjusted 2021 ending balances of the Warranty Expense and the Estimated Warranty Llability accounts. g. The adjusted 2021 ending balances of the interest Expense and the interest. Payable accounts. 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 ltem b requires 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 40 . Prepare a single-step income statement for 2021. 4b. Prepare the statement of retained eamings (cash dividends during 2021 were $11,000 ) for 2021 4c. Prepare a classified balance sheet for December 31, 2021