oblem 1 Unadjusted Trial Balance Debit Credit $ 18,000 3,350 $ 838 13,200 37,000 48,062 13,050 5, 250 1,650 0 20,000 70, 800 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 D. Buggs, Capital D. Buggs, Withdrawals Extermination services revenue 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 15,000 70,000 882 73,426 47,800 0 40,000 0 14,000 0 1, 246 10,500 7,800 $ 255,896 $ 255, 896 The following information in a through h applies to the company at the end of a. The bank reconciliation as of December 31, 2021, Includes the following faci Cash balance per bank Cash balance per books Outstanding checks Deposit in transit $ 15,600 18,000 2,050 2,700 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, 2021, Includes the following facts. Cash balance per bank Cash balance per books $ 15,600 18,000 Outstanding checks 2,050 Deposit in transit 2,700 Interest earned (on bank account) 62 Bank service charges (miscellaneous expense) 20 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 $684 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 $725. c. A truck is purchased and placed in service on January 1, 2021. Its cost is being depreciated with the straight-line method using the following facts and estimates. Original cost $ 37,000 Expected salvage value $ 10,000 Useful life (years) d. Two items of equipment (a sprayer and an injector) were purchased and put into service in early January 2019. They are being depreciated with the straight-line method using these facts and estimates. Sprayer Injector Original cost $ 28,000 $ 20,000 Expected salvage value $ 3,000 $ 3,000 Useful life (years) e. On September 1, 2021, the company is paid $8,700 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 sells. The expected cost of providing warranty service 1575% of the arterminatio 8 5 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 $64,200 for 2021. No warranty expense has been recorded for 2021. All costs of servicing warranties in 2021 were properly debited to the Estimated Warranty Liability account. 9. The $20.000 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, 2021 n. The ending inventory of merchandise is counted and determined to have a cost of $12,700, Bug-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 cheqk b. Adjustment needed to obtain the correct ending balance of the Allowance for Doubtful Accounts. c. Depreciation expense for the truck used during year 2021, d. Depreciation 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. 1. The adjusted 2021 ending balances of the Warranty Expense and the Estimated Warranty Liability 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 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. 40. Prepare a single-step income statement for 2021 4b. Prepare the statement of owner's equity (cash withdrawals during 2021 were $15,000 and owner investments were so) for 2971 4c. Prepare a classified balance sheet for December 31 2021 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. Depreciation expense for the truck used during year 2021. 1. Depreciation 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. (DO not round your intermediate calculations.) f. The adjusted 2021 ending balances of the Warranty Expense and the Estimated Warranty Liability accounts. 9. The adjusted 2021 ending balances of the Interest Expense and the Interest Payable accounts. Show less a. Reconciled balance of cash a. Omitted check b. Necessary adjustment c. Depreciation expense Sprayer Injector d. Depreciation expense Extermination Services Revenue Unearned Services Revenue 6. Ending balances after adjustment Warranty Expense Estimated Warranty Liability Ending balances after adjustment Interest Expense Interest Payable g. Ending balances after adjustment Account Title BUG-OFF EXTERMINATORS December 31, 2021 Unadjusted Trial Balance Adjustments Debit Credit Debit Credit 18,000 3,350 $ 13,200 37,000 Adjusted Trial Balance Debit Credit 838 0 48,000 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 D. Buggs, Capital D. Buggs, Withdrawals Extermination services revenue Interest revenue Sales Cost of goods sold Depreciation expense-Trucks Depreciation expense-Equipment Wages expense Interest expense 13,050 5,250 1,650 0 0 20,000 70,800 15,000 70,000 882 73,426 47.800 0 0 40,000 Saved UTU SUIVILUSIUVEN 0 20,000 70,800 15,000 70,000 882 73,426 Interest payable Long-term notes payable D. Buggs, Capital D. Buggs, Withdrawals Extermination services revenue Interest revenue Sales 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 47,800 0 0 40,000 0 14,000 OS 0 1.246 10.500 7,800 0 $ 255,896 $ 255,896 View transaction list X X 1 Record the adjustment to the Cash account. > N Record the write off of uncollectible accounts. 3 Record the adjustment for bad bts. 4 Record depreciation on the truck. 5 Record depreciation on the equipment. Credit 6 Recorded the adjustment for unearned revenues. 7 Record the estimated warranty expense. 8 Record the adjustment for interest. Note : journal entry has been entered Record entry Clear entry View general journal BUG-OFF EXTERMINATORS Income Statement For Year Ended December 31, 2021 Revenues + Total revenues Expenses Total expenses Balance Sheet December 31, 2021 Assets Current assets: Total current assets Plant assets: Total plant assets Total assets Liabilities Current liabilities: Total plant assets Total assets Liabilities Current liabilities: Total current liabilities Long-term liabilities: Total liabilities Equity Total liabilities and equity Req 4B Rega Prepare the statement of owner's equity (cash withdrawals during 2021 were $15,000 and owner Investments were $0) for 2021. BUG-OFF EXTERMINATORS Statement of Owner's Equity For Year Ended December 31, 2021 Add: Investments by owner 0