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Comprehensive Problem Bug-Off Exterminators Bup-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, 2010 Unadjusted Trial Balance Cash $ 17,600 Accounts receivable 4,300 Allowance for doubtful accounts $ 834 Merchandise inventory 11,100 Trucks 35,000 Accum. depreciation-Trucks 0 Equipment 48,000 Accum. depreciation Equipment 14.500 Accounts payable 5,150 Estimated warranty liability 1.550 Uneamed services revenue 0 Interest payable o Long-term notes payable 16.500 D. Buggs, Capital 66.200 D. Buggs, Withdrawals 13,000 Extermination services revenue 65.475 Interest revenue 878 Sales (of merchandise) 73.151 Cost of goods sold 47200 Depreciation expense Trucks 0 Depreciation expense-Equipment 0 Wages expense 38,000 Interest expense O Rent expense 12.000 Bad debts expense 0 Miscellaneous expense 1.238 Repairs expense 9,500 Utilities expense 7,400 Warranty expense 0 Totals $244,338 $244,338 24.38 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, 2019, includes the following facts. Cash balance per bank Cash balance per books Outstanding checks Deposit in transit Interest eamed (on bank account) Bank service charges (miscellaneous expense) $15,400 17,600 1,950 2.600 58 18 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 $682 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 $715. c. A truck is purchased and placed in service on January 1, 2019. Its cost is being depreciated with the straight-line method using the following facts and estimates Original cost $33,500 CE1175171005 Expected salvage value $ 9,200 Useful life (years) d. Two items of equipment (a sprayer and an injector) were purchased and put into service in early January 2017. They are being depreciated with the straight-line method using these facts and estimates. Sprayer Injector Original cost $29,400 $18,600 Expected salvage value $ 3,000 $ 2,800 Useful life (years) 8 5 e. On September 1, 2019, the company is paid $6,300 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 4% of the extermination services revenue of $61,275 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 $16,500 long-term noto 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 $11,100. 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 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 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. 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 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. 4a. Prepare a single-step income statement for year 2019. 4b. Prepare a statement of owner's equity (cash withdrawals during 2019 were $13,000) for year 2019 and there were no investments by the owner in the current year. 4c. Prepare a classified balance sheet as at 2019. Assignment Print View o Complete this question by entering your answers in the tabs below. Reg 1 Reg 3 Reg 4B Req 2 Reg 4A Reg 4C Prepare a single-step income statement for year 2019. BUG-OFF EXTERMINATORS Income Statement For Year Ended December 31, 2019 Revenues Total revenues Expenses Total expenses 20 4 Assignment Print View Expected salvage value $9.200 Useful life (years) d. Two items of equipment (a sprayer and an injector) were purchased and put into service in early January 2017. They are being depreciated with the straight-line method using these facts and estimates. Sprayer Injector Original cost $20.400 $18.600 Expected salvage value $ 3.000 $2,800 Useful life (years) 5 e. On September 1, 2019, the company is paid $6,300 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. t. The company offers a warranty for the services it sells. The expected cost of providing warranty service is 4% of the extermination services revenue of $61,275 for 2019. No warranty expense has been recorded for 2019. All costs of servicing warranties in 2019 wore properly debited to the Estimated Warranty Liability account g. The $16.500 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 $11,100. 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 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 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. 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. 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. 4a. Prepare a single-step income statement for year 2019. 4b. Prepare a statement of owner's equity (cash withdrawals during 2019 were $13,000) for year 2019 and there were no investments by the owner in the current year. 4c. Prepare a classified balance sheet as at 2019. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4 Reg 48 Reg 4C Prepare a statement of owner's equity (cash withdrawals during 2019 were $13,000) for year 2019 and there were no investments by the owner in the current year. BUG-OFF EXTERMINATORS Statement of Owner's Equity For Year Ended December 31, 2019 Reg 1 Reg 2 Reg 3 Reg 4A Req 4B Reg 4C 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 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 A a. Reconciled balance Omitted check Necessary adjustment Depreciation expense b. C. d. Sprayer Injector Depreciation expense Unearned Services Revenue Services Revenue e. Ending balances after adjustment Estimated Warranty Liability Warranty Expense f. Ending balances after adjustment Interest Expense Interest Payablo 9. Ending balances after adjustment 7/20/2020 Assignment Print View Complete this question by entering your answers in the tabs below. Req1 Reg 2 Reg 3 Reg 4 Reg 4B Reg 40 Credit 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. (Do not round your Intermediate calculations.) BUG-OFF EXTERMINATORS December 31, 2019 Unadjusted Adjustments Adjusted Trial Balance Trial Balance Account Title Debit Credit Debit Debit Credit Cash $ 17,600 Accounts receivable 4,300 Allowance for doublul accounts $ 834 Merchandise inventory 11,100 Trucks 35,000 Accum. deprec-Trucks 0 Equipment 48.000 Accum. deprec-Equip 14,600 Accounts payable 5,150 Estim. warranty liability 1.550 Uneamed services rev 0 Interest payable O Long-term notes payable 16,500 D. Buggs, Capital 68,200 D. Bugos, Withdrawals 13.000 Extermination services revenue 65,475 Interest revenue 878 Sales 73.151 Cost of goods sold Deprec. expense-Trucks 0 Deprec. expense-Equip 0 Wages expense 38,000 Interest expense 0 Rent expense 12,000 Bad debts expenso 0 Miscellaneous expense Repairs expense 9,500 Utilities expense 7.400 Warranty expense Totals $ 244.338 $ 244,338 47200 1.238 The usted 2019ances of the Extermination Services Revenue and Uneamed Services Revenue accounts 2 the rest of the counts for Warranty Expense and Estimated Warranty Liability Original cost $29.400 $18.600 Expected salvage value $ 3,000 $ 2,000 Use the years) B 5 e. On September 1, 2019, the company is paid $6,300 cash in advance to provide month 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 Exdermination Services Revenue acount The company offers a warranty for the services itsells. The expected cost of providing warranty service is 4% of the extermination services revenue of $61,275 for 2019. No warranty expense has been recorded for 2019. Al costs of servicing warranties in 2019 were property debited to the Estimated Warranty Liability account 9 The $16,500 long-term note is an 0%, five-year, interest-bearing note with interest payablo 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 $11,100. 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 check Adjustment needed to obtain the correct ending balance of the Allowance for Doubtful Accounts c. Depreciation expense for the truck used during your 2019. d. Depreciation expense for the two items of equipment used during your 2019. e. The adjusted 2019 ending The adjusted 2018 of the accounts for interest Expense and Interest Payable. complete the so-column table by first evering the appropriate adjustments for items through and then completing the adjusted trial balance columns. Hint: Item requires two adjustments. 3. Prepare journal entries to record the adjustments entered on the six-column table. Assume Bug-Offs adjusted balance for Merchandise lewentory matches the year-end physical count. 4. Prepare a single-stop income statement for year 2019 4b. Prepare a statement of owner's equity cash withdrawals during 2019 were $13.000) for year 2019 and there were no investments by the owner in the current year. 4c. Prepare a classified balance sheet as at 2019. Complete this question by entering your answers in the tabs below. Regi Reg 2 Req3 Req 4A Reg 40 Reg 4C 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. (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.) View transaction list Journal entry worksheet 1 2 3 4 5 6 7 Record the adjustment to the Cash account. Note: Enter debts before credits General Journal Debit Credit Transaction (a) Record entry Clear entry View general journal Reg 2 Req4A >

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