80.2K

Verified Solution

Link Copied!

Please Read the following (Alot) , and please answer the following "Question 1" or Req 1

Question 1 & Req 1:

Please only completeQuestion 1 and only Question 1 in its entirty (idk if i spelled that right) Thanks!

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. a. The bank reconciliation as of December 31,2021 , includes the following facts. Reported on the bank statement is a canceled check that the company failed to record. (Information from the bank reconcillation 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 $683 should be written off as uncollectible. Using an aging of recelvables, the company determines that the ending balance of the Allowance for Doubtful Accounts should be $720. 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. 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. e. On September 1,2021 , the company is paid $7,500 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 $63,000 for 2021. No warranty expense has been recorded for 2021 . All costs of servicing warranties in 2021 were properly debited to the Estimated Warranty Liabilify account. 9. The $19,000 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. h. The ending inventory of merchandise is counted and determined to have a cost of $12,500. 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 ombted 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 . 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. f. 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. 9. 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 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 2021. 4b. Prepare the statement of owner's equity (cash withdrawals during 2021 wer $14,000 and owner investments were $0 ) for 2021 . 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. 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. Note: Do not round your intermediate calculations. f. 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. 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. a. The bank reconciliation as of December 31,2021 , includes the following facts. Reported on the bank statement is a canceled check that the company failed to record. (Information from the bank reconcillation 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 $683 should be written off as uncollectible. Using an aging of recelvables, the company determines that the ending balance of the Allowance for Doubtful Accounts should be $720. 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. 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. e. On September 1,2021 , the company is paid $7,500 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 $63,000 for 2021. No warranty expense has been recorded for 2021 . All costs of servicing warranties in 2021 were properly debited to the Estimated Warranty Liabilify account. 9. The $19,000 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. h. The ending inventory of merchandise is counted and determined to have a cost of $12,500. 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 ombted 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 . 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. f. 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. 9. 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 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 2021. 4b. Prepare the statement of owner's equity (cash withdrawals during 2021 wer $14,000 and owner investments were $0 ) for 2021 . 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. 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. Note: Do not round your intermediate calculations. f. 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

Answer & Explanation Solved by verified expert

See Answer