Project #2A Saved 1 Bug-Off Exterminators provides pest control services and sells extermination products manufactured by other companies. The following six-column table contains the company's unadjusted trial balance as of December 31, 2018 50 BUG-OFF EXTERMINATORS points December 31, 2018 Unadjusted Trial Balance $ 16,000 5,000 Cash Accounts receivable Allowance for doubtful accounts Merchandise inventory Trucks ook $ 810 10,500 30,300 Print Accum. depreciation-Trucks Equipment Accum. depreciation-Equipment Accounts payable Estimated warranty liability Unearned services revenue Interest payable Long-term notes payable Common stock Retained earnings Dividends Extermination services 36,000 Reference 12,400 4,500 1,400 14,500 11,000 49,800 17,000 67,000 revenue Interest revenue Sales (of me rchand ise ) 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 879 54,228 45,800 0 34,000 7,200 1,217 6,600 6,900 Warranty expense Totals $216,517 $2 16, 517 The following information in a through happlies to the company at the end of the current year a. The bank reconciliation as of December 31, 2018, includes the following facts. $ 15,100 17,000 1,800 2,450 Cash balance per bank Cash balance per books Outstanding checks Deposit in transit Interest earned (on bank account) Bank service charges (miscellaneous expense) 52 15 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 $679 should be written off as uncollecti ble Using an aging of receivables, the company determines that the ending balance of the Allowance for Doubtful Accounts should be $700. Project #2 Saved 1 c. A truck is purchased and placed in service on January 1, 2018. Its cost is being depreciated with the straight-line method using the following facts and estimates 50 Original cost $32,000 Expected salvage value Useful life (years) points 8,000 4 ook d. Two items of equipment (a sprayer and an injector) were purchased and put into service in early January 2016. They are being depreciated with the straight-line method using these facts and estimates. Print Sprayer Injector $27,000 $18,000 Original cost Expected salvage value Useful life (years) Reference 2,500 3,000 8 5 e. On August 1, 2018, the company is paid $3,840 cash in advance to provide monthly service for an apartment complex for one year. The company began providing the services in August. 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 $64,760 for 2018. No warranty expense has been recorded for 2018. All costs of servicing warranties in 2018 were properly debited to the Estimated Warranty Liability account. g. The $15,000 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, 2018. h. The ending inventory of merchandise is counted and determined to have a cost of $11,700. Bug-Off uses a perpetual inventory system. Required: 1. Use the preced ing information to 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 2018. d. Depreciation expense for the two items of equipment used during year 2018 e. The adjusted 2018 ending balances of the Extermination Services Revenue and Unearned Services Revenue accounts. f. The adjusted 2018 ending balances of the Warranty Expense and the Estimated Warranty Liability accounts. g. The adjusted 2018 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 b requires two adjustments.) 3. Prepare journal entries to record the adjustments entered 4n the six-column table. Assume Bug-Off's adjusted balance for Merchandise Inventory matches the year-end physical count. 4-a. Prepare a single-step income statement for year 2018 4-b. Prepare a statement of retained earnings (cash dividends during 2018 were $10,000) for year 2018 4-c. Prepare a classified balance sheet as at 2018 XAnswer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 4A Req 4C Req 2 Req 3 Req 4B 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 2018. d. Depreciation expense for the two items of equipment used during year 2018. e. The adjusted 2018 ending balances of the Extermination Services Revenue and Unearned Services Revenue accounts. f. The adjusted 2018 ending balances of the Warranty Expense and the Estimated Warranty Liability accounts. g. The adjusted 2018 ending balances of the Interest Expense and the Interest Payable accounts. (Round amounts to nearest whole dollar.) Show lessA Reconciled balance $ 15,750 $ 1,287 . Omitted check Necessary 551X $ b. adjustment Depreciation $ 6,000 C. expense Depreciation- $ 3,000 d. Sprayer Depreciation- Injector Services revenue $ 3,100 $ 57,760X . Unearned services $ 2,240 revenue Warranty expense Estimated warranty liability Interest expense $ 1,444X f. $ 2,844X $ g. Interest payable Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 4B Req 4C 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.) Show less A BUG-OFF EXTERMINATORS December 31, 2018 Adjusted Trial Balance Unadjusted Trial Balance Adjustments Credit Debit Debit Account Title Debit Credit Credit $16,000 $1,250$15,750X Cash Accounts receivable Allowance for doubtful accounts Merchandise inventory Trucks Accum. deprec.- Trucks Equipment Accum. deprec.- Equip Accounts payable Estim. warranty liability Unearned services 3,321X 679 5,000 $ 679 $ 810 551X 700 $ 11,700X 10,500 32,000X 30,300 6,000 6,000 0 45,000X 36,000 18,300X 6,100 12,400 1,287 3,713X 4,500 1,444X 2,844X 1,400 2,240 2,240 0 rev Interest payable Long-term notes payable Common stock Retained earnings Dividends Extermination services revenue 15,000X 14,500 10,000X 49,700 11,000 49,800 10,000X 17,000 2,240 57,760X 67,000 924X 71,026X 52 Interest revenue 879 Sales 54,228 46,300X Cost of goods sold Deprec. expense- Trucks Deprec. expense Equip Wages expense Interest expense Rent expense Bad debts expense Miscellaneous expense Repairs expense Utilities expense Warranty expense 45,800 6,000 6,000 0 6,100 6,100 0 35,000X 34,000 0 9,000X 551X 7,200 551X 0 1,241X 15 1,217 8,000X 6,800X 1,444X $ 238,207 6,600 6,900 1,444X $ 18,316 0 I$ $ $ 216,517 $ 216,517 Totals 238,207 18,316 Bea 1 Bea 3 XAnswer is not complete. Complete this question by entering your answers in the tabs below. Req 2 Req 4C Req 1 Req 3 Req 4A Req 4B Prepare journal entries to record the adjustments entered in the six-column table. Assume Bug-Off's adjusted balance for Merchandise Inventory matches the year-end physical count. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field. Do not round your intermediate calculations.) Show less A General Journal Credit No Transaction Debit Miscellaneous expenses Accounts payable 1 (a) Interest revenue Cash Allowance for doubtful accounts Accounts receivable 2 (b1) Bad debts expense (b2) Allowance for doubtful accounts Depreciation expense-Trucks Accumulated depreciation-Trucks 4 (c) Depreciation expense-Equipment Accumulated depreciation-Equipment 5 (d) Extermination services revenue (e) Unearned services revenue 7 (f) Warranty expense Estimated warranty liability No journal entry required 8 (g) Req 2 Req 4A> Answer is not complete Complete this question by entering your answers in the tabs below. Req 2 Req 1 Req 3 Req 4A Req 4B Req 4C Prepare a single-step income statement for year 2018 BUG-OFF EXTERMINATORS Income Statement For Year Ended December 31, 2018 Revenues Extermination services revenue Sales Interest revenue Total revenues 0 Expenses Cost of goods sold Depreciation expense Trucks Depreciation expense Equipment Wages expense Rent expense Bad debts expense Miscellaneous expenses Repairs expense Utilities expense Warranty expense Interest expense Total expenses Net income 0 $ 0 Req 3 Req 4B Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 4B Req 4C Prepare a statement of retained earnings (cash dividends during 2018 were $10,000) for year 2018. BUG-OFF EXTERMINATORS Statement of Retained Earnings For Year Ended December 31, 2018 Retained earnings, December 31, 2017 Add: Net income 0 Less: Dividends Retained earnings, December 31, 2018 $ Req 4A Req 4C Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 4B Req 4C Prepare a classified balance sheet as at 2018. (Negative amounts should be indicated by a minus sign. Do not round your intermediate calculations.) BUG-OFF EXTERMINATORS Balance Sheet December 31, 2018 Assets Current assets: Cash Accounts receivable Allowance for doubtful accounts Merchandise inventory Total current assets 0 Plant assets: Trucks Accum. depreciation- Trucks Trucks, net Equipment Accum. depreciation- Equipment Equipment, net 0 Total plant assets Total assets $ 0 Liabilities Current liabilities: Accounts payable Estimated warranty liability Unearned services revenue $ Total current liabilities 0 Long-term liabilities: Long-term notes payable Total liabilities 0 Equity Common stock Retained earnings $ Total liabilities and equity 0 Req 4B Req 4C Project #2A Saved 1 Bug-Off Exterminators provides pest control services and sells extermination products manufactured by other companies. The following six-column table contains the company's unadjusted trial balance as of December 31, 2018 50 BUG-OFF EXTERMINATORS points December 31, 2018 Unadjusted Trial Balance $ 16,000 5,000 Cash Accounts receivable Allowance for doubtful accounts Merchandise inventory Trucks ook $ 810 10,500 30,300 Print Accum. depreciation-Trucks Equipment Accum. depreciation-Equipment Accounts payable Estimated warranty liability Unearned services revenue Interest payable Long-term notes payable Common stock Retained earnings Dividends Extermination services 36,000 Reference 12,400 4,500 1,400 14,500 11,000 49,800 17,000 67,000 revenue Interest revenue Sales (of me rchand ise ) 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 879 54,228 45,800 0 34,000 7,200 1,217 6,600 6,900 Warranty expense Totals $216,517 $2 16, 517 The following information in a through happlies to the company at the end of the current year a. The bank reconciliation as of December 31, 2018, includes the following facts. $ 15,100 17,000 1,800 2,450 Cash balance per bank Cash balance per books Outstanding checks Deposit in transit Interest earned (on bank account) Bank service charges (miscellaneous expense) 52 15 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 $679 should be written off as uncollecti ble Using an aging of receivables, the company determines that the ending balance of the Allowance for Doubtful Accounts should be $700. Project #2 Saved 1 c. A truck is purchased and placed in service on January 1, 2018. Its cost is being depreciated with the straight-line method using the following facts and estimates 50 Original cost $32,000 Expected salvage value Useful life (years) points 8,000 4 ook d. Two items of equipment (a sprayer and an injector) were purchased and put into service in early January 2016. They are being depreciated with the straight-line method using these facts and estimates. Print Sprayer Injector $27,000 $18,000 Original cost Expected salvage value Useful life (years) Reference 2,500 3,000 8 5 e. On August 1, 2018, the company is paid $3,840 cash in advance to provide monthly service for an apartment complex for one year. The company began providing the services in August. 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 $64,760 for 2018. No warranty expense has been recorded for 2018. All costs of servicing warranties in 2018 were properly debited to the Estimated Warranty Liability account. g. The $15,000 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, 2018. h. The ending inventory of merchandise is counted and determined to have a cost of $11,700. Bug-Off uses a perpetual inventory system. Required: 1. Use the preced ing information to 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 2018. d. Depreciation expense for the two items of equipment used during year 2018 e. The adjusted 2018 ending balances of the Extermination Services Revenue and Unearned Services Revenue accounts. f. The adjusted 2018 ending balances of the Warranty Expense and the Estimated Warranty Liability accounts. g. The adjusted 2018 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 b requires two adjustments.) 3. Prepare journal entries to record the adjustments entered 4n the six-column table. Assume Bug-Off's adjusted balance for Merchandise Inventory matches the year-end physical count. 4-a. Prepare a single-step income statement for year 2018 4-b. Prepare a statement of retained earnings (cash dividends during 2018 were $10,000) for year 2018 4-c. Prepare a classified balance sheet as at 2018 XAnswer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 4A Req 4C Req 2 Req 3 Req 4B 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 2018. d. Depreciation expense for the two items of equipment used during year 2018. e. The adjusted 2018 ending balances of the Extermination Services Revenue and Unearned Services Revenue accounts. f. The adjusted 2018 ending balances of the Warranty Expense and the Estimated Warranty Liability accounts. g. The adjusted 2018 ending balances of the Interest Expense and the Interest Payable accounts. (Round amounts to nearest whole dollar.) Show lessA Reconciled balance $ 15,750 $ 1,287 . Omitted check Necessary 551X $ b. adjustment Depreciation $ 6,000 C. expense Depreciation- $ 3,000 d. Sprayer Depreciation- Injector Services revenue $ 3,100 $ 57,760X . Unearned services $ 2,240 revenue Warranty expense Estimated warranty liability Interest expense $ 1,444X f. $ 2,844X $ g. Interest payable Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 4B Req 4C 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.) Show less A BUG-OFF EXTERMINATORS December 31, 2018 Adjusted Trial Balance Unadjusted Trial Balance Adjustments Credit Debit Debit Account Title Debit Credit Credit $16,000 $1,250$15,750X Cash Accounts receivable Allowance for doubtful accounts Merchandise inventory Trucks Accum. deprec.- Trucks Equipment Accum. deprec.- Equip Accounts payable Estim. warranty liability Unearned services 3,321X 679 5,000 $ 679 $ 810 551X 700 $ 11,700X 10,500 32,000X 30,300 6,000 6,000 0 45,000X 36,000 18,300X 6,100 12,400 1,287 3,713X 4,500 1,444X 2,844X 1,400 2,240 2,240 0 rev Interest payable Long-term notes payable Common stock Retained earnings Dividends Extermination services revenue 15,000X 14,500 10,000X 49,700 11,000 49,800 10,000X 17,000 2,240 57,760X 67,000 924X 71,026X 52 Interest revenue 879 Sales 54,228 46,300X Cost of goods sold Deprec. expense- Trucks Deprec. expense Equip Wages expense Interest expense Rent expense Bad debts expense Miscellaneous expense Repairs expense Utilities expense Warranty expense 45,800 6,000 6,000 0 6,100 6,100 0 35,000X 34,000 0 9,000X 551X 7,200 551X 0 1,241X 15 1,217 8,000X 6,800X 1,444X $ 238,207 6,600 6,900 1,444X $ 18,316 0 I$ $ $ 216,517 $ 216,517 Totals 238,207 18,316 Bea 1 Bea 3 XAnswer is not complete. Complete this question by entering your answers in the tabs below. Req 2 Req 4C Req 1 Req 3 Req 4A Req 4B Prepare journal entries to record the adjustments entered in the six-column table. Assume Bug-Off's adjusted balance for Merchandise Inventory matches the year-end physical count. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field. Do not round your intermediate calculations.) Show less A General Journal Credit No Transaction Debit Miscellaneous expenses Accounts payable 1 (a) Interest revenue Cash Allowance for doubtful accounts Accounts receivable 2 (b1) Bad debts expense (b2) Allowance for doubtful accounts Depreciation expense-Trucks Accumulated depreciation-Trucks 4 (c) Depreciation expense-Equipment Accumulated depreciation-Equipment 5 (d) Extermination services revenue (e) Unearned services revenue 7 (f) Warranty expense Estimated warranty liability No journal entry required 8 (g) Req 2 Req 4A> Answer is not complete Complete this question by entering your answers in the tabs below. Req 2 Req 1 Req 3 Req 4A Req 4B Req 4C Prepare a single-step income statement for year 2018 BUG-OFF EXTERMINATORS Income Statement For Year Ended December 31, 2018 Revenues Extermination services revenue Sales Interest revenue Total revenues 0 Expenses Cost of goods sold Depreciation expense Trucks Depreciation expense Equipment Wages expense Rent expense Bad debts expense Miscellaneous expenses Repairs expense Utilities expense Warranty expense Interest expense Total expenses Net income 0 $ 0 Req 3 Req 4B Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 4B Req 4C Prepare a statement of retained earnings (cash dividends during 2018 were $10,000) for year 2018. BUG-OFF EXTERMINATORS Statement of Retained Earnings For Year Ended December 31, 2018 Retained earnings, December 31, 2017 Add: Net income 0 Less: Dividends Retained earnings, December 31, 2018 $ Req 4A Req 4C Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 4B Req 4C Prepare a classified balance sheet as at 2018. (Negative amounts should be indicated by a minus sign. Do not round your intermediate calculations.) BUG-OFF EXTERMINATORS Balance Sheet December 31, 2018 Assets Current assets: Cash Accounts receivable Allowance for doubtful accounts Merchandise inventory Total current assets 0 Plant assets: Trucks Accum. depreciation- Trucks Trucks, net Equipment Accum. depreciation- Equipment Equipment, net 0 Total plant assets Total assets $ 0 Liabilities Current liabilities: Accounts payable Estimated warranty liability Unearned services revenue $ Total current liabilities 0 Long-term liabilities: Long-term notes payable Total liabilities 0 Equity Common stock Retained earnings $ Total liabilities and equity 0 Req 4B Req 4C