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9:00 90 Bug-Off Exterminators provides pest control services and sells extermination products manufactured I the company's unadjusted trial balance as of December 31, 2021. December 31, 2021 Unadjusted Trial Balance Debit Credit Cash $ 19,800 Accounts receivable 30,980 Allowance for doubtful accounts $ 856 Merchandise inventory 15,900 Trucks 46,000 Accumulated depreciation-Trucks 0 Equipment 53,400 Accumulated depreciation-Equipment 14,580 Accounts payable 5,700 Estimated warranty liability 2,100 Unearned services revenue 0 Interest payable 0 Long-term notes payable 29,000 Common stock 27,000 Retained earnings 64,500 Dividends 24,000 Extermination services revenue 88,000 Interest revenue 900 Sales (of merchandise) 105,826 Cost of goods sold 50,500 Depreciation expense-Trucks 0 Depreciation expense-Equipment 0 Wages expense 49,000 Interest expense 0 Rent expense 23,000 Bad debts expense 0 Miscellaneous expense 1,282 Repairs expense 15,000 Utilities expense Warranty expense 9,600 0 Totals $ 338,462 $ 338,462 a. The bank reconciliation as of December 31, 2021, includes the following facts. Cash balance per bank Cash balance per books Outstanding checks Deposit in transit Interest earned (on bank account) Bank service charges (miscellaneous expense) $ 16,500 19,800 2,500 3,150 80 29 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 $693 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 $770. 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 $ 46,000 Expected salvage value Useful life (years) $ 13,600 4 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 $ 29,800 $ 23,600 Expected salvage value $ 3,000 $ 3,900 Useful life (years) 8 e. On September 1, 2021, the company is paid $19,500 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 $75,000 for 2021. No warranty expense has been recorded for 2021. All costs of servicing warranties in 2021 were properly debited to the Estimated Warranty Liability account. g. The $29,000 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. 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 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. 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 retained earnings (cash dividends during 2021 were $24,000) for 2021. 4c. Prepare a classified balance sheet for December 31, 2021. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 4B Req 4C 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. coursehero.com Show less 9:01 complete this question by entering your answers in the LADS DCIOW. Req 1 Req 2 Req 3 Req 4A Req 4B Req 4C 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. HULU MOTIVE round your mon 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. a. Reconciled balance of cash a. Omitted check b. Necessary adjustment c. Depreciation expense $ 2,701 $ 607 $ 8,100 Sprayer d. Depreciation expense $ 3,350 $ Injector 3,940 Extermination Unearned Services Revenue Services Revenue e. Ending balances after adjustment Estimated Warranty Expense Warranty Liability f. Ending balances after adjustment Interest Expense Interest Payable Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 48 Req 4C Show less Show less 90 Use the results of part 1 to complete the six-column table by first entering the appropriate adjustments for items a thro and then completing the adjusted trial balance columns. Hint: Item b requires two adjustments. Note: Do not round your intermediate calculations. BUG-OFF EXTERMINATORS December 31, 2021 Unadjusted Adjustments Account Title Trial Balance Adjusted Trial Balance Debit Credit Debit Credit Debit Credit Cash $ 19,800 Accounts receivable 30,980 Allowance for doubtful accounts $ 856 Merchandise inventory 15,900 Trucks 46,000 Accumulated depreciation-Trucks 0 Equipment 53,400 Accumulated depreciation-Equipment 14,580 Accounts payable 5,700 Estimated warranty liability 2,100 Unearned services revenue 0 Interest payable 0 Long-term notes payable 29,000 Common stock 27,000 Retained earnings 64.500 Unearned services revenue Interest payable Long-term notes payable 29,000 Common stock 27,000 Retained earnings 64,500 Dividends 24,000 Extermination services revenue 88,000 Interest revenue 900 Sales 105,826 Cost of goods sold 50,500 Depreciation expense-Trucks 0 Depreciation expense-Equipment 0 Wages expense 49,000 Interest expense Rent expense Bad debts expense 0 23,000 Miscellaneous expense 0 1,282 Repairs expense 15,000 D coursehero.com 9:01 Miscellaneous expense Repairs expense Utilities expense Warranty expense Totals 1,282 15,000 9,600 0 $ 338,462 $ 338,462 Journal entry worksheet > 1 2 345678 Record the adjustment to the Cash account. Note: Enter debits before credits. Transaction General Journal Debit Credit 90 1:Record the adjustment to the Cash account. Record the write off of uncollectible . accounts. Record the write off of uncollectible accounts. Record depreciation on the truck. Record depreciation on the equipment. Recorded the adjustment for unearned revenues. Record the estimated warranty expense. Record the adjustment for interest. Req 1 Req 2 Req 3 Req 4A Req 4B Re Prepare a single-step income statement for 2021. BUG-OFF EXTERMINATORS Income Statement For Year Ended December 31, 2021 coursehero.com 9:01 90 Req 1 Req 2 Req 3 Req 4A Req 48 Re Prepare a single-step income statement for 2021. BUG-OFF EXTERMINATORS Income Statement For Year Ended December 31, 2021 Revenues Total revenues Expenses $ 0 Total expenses $ 0 Req 1 Req 2 Req 3 Req 4A Req 4B Req 4C 5 Prepare the statement of retained earnings (cash dividends during 2021 were $24, BUG-OFF EXTERMINATORS Statement of Retained Earnings For Year Ended December 31, 2021 0 $ 0 Req 1 Req 2 Req3 Req 4A Req 48 Req 4C Prepare a classified balance sheet for December 31, 2021. Note: Amounts to be deducted should be indicated with a minus sign. Do not round your interme BUG-OFF EXTERMINATORS Balance Sheet December 31, 2021 Current assets Assets coursehero.com 5 9:02 90 Prepare the statement of retained earnings (cash dividends during 2021 were $24, BUG-OFF EXTERMINATORS Statement of Retained Earnings For Year Ended December 31, 2021 0 $ 0 Req 1 Req 2 Req 3 Req 4A Req 48 Req 4C Prepare a classified balance sheet for December 31, 2021. Note: Amounts to be deducted should be indicated with a minus sign. Do not round your interme BUG-OFF EXTERMINATORS Current assets: Total current assets Plant assets Total plant assets Total assets Current liabilities Balance Sheet December 31, 2021 Assets 0 $ Liabilities 0 Total plant assets 0 Total assets $ 0 Liabilities Current liabilities: Total current liabilities Long-term liabilities: Total liabilities Equity coursehero.com 69 $ 0 0 9:02 Current liabilities: Total current liabilities Long-term liabilities: Total liabilities Total equity Total liabilities and equity Liabilities Equity 89 EA $ 0 0 0 $ 0 9:00 90 Bug-Off Exterminators provides pest control services and sells extermination products manufactured I the company's unadjusted trial balance as of December 31, 2021. December 31, 2021 Unadjusted Trial Balance Debit Credit Cash $ 19,800 Accounts receivable 30,980 Allowance for doubtful accounts $ 856 Merchandise inventory 15,900 Trucks 46,000 Accumulated depreciation-Trucks 0 Equipment 53,400 Accumulated depreciation-Equipment 14,580 Accounts payable 5,700 Estimated warranty liability 2,100 Unearned services revenue 0 Interest payable 0 Long-term notes payable 29,000 Common stock 27,000 Retained earnings 64,500 Dividends 24,000 Extermination services revenue 88,000 Interest revenue 900 Sales (of merchandise) 105,826 Cost of goods sold 50,500 Depreciation expense-Trucks 0 Depreciation expense-Equipment 0 Wages expense 49,000 Interest expense 0 Rent expense 23,000 Bad debts expense 0 Miscellaneous expense 1,282 Repairs expense 15,000 Utilities expense Warranty expense 9,600 0 Totals $ 338,462 $ 338,462 a. The bank reconciliation as of December 31, 2021, includes the following facts. Cash balance per bank Cash balance per books Outstanding checks Deposit in transit Interest earned (on bank account) Bank service charges (miscellaneous expense) $ 16,500 19,800 2,500 3,150 80 29 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 $693 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 $770. 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 $ 46,000 Expected salvage value Useful life (years) $ 13,600 4 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 $ 29,800 $ 23,600 Expected salvage value $ 3,000 $ 3,900 Useful life (years) 8 e. On September 1, 2021, the company is paid $19,500 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 $75,000 for 2021. No warranty expense has been recorded for 2021. All costs of servicing warranties in 2021 were properly debited to the Estimated Warranty Liability account. g. The $29,000 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. 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 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. 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 retained earnings (cash dividends during 2021 were $24,000) for 2021. 4c. Prepare a classified balance sheet for December 31, 2021. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 4B Req 4C 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. coursehero.com Show less 9:01 complete this question by entering your answers in the LADS DCIOW. Req 1 Req 2 Req 3 Req 4A Req 4B Req 4C 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. HULU MOTIVE round your mon 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. a. Reconciled balance of cash a. Omitted check b. Necessary adjustment c. Depreciation expense $ 2,701 $ 607 $ 8,100 Sprayer d. Depreciation expense $ 3,350 $ Injector 3,940 Extermination Unearned Services Revenue Services Revenue e. Ending balances after adjustment Estimated Warranty Expense Warranty Liability f. Ending balances after adjustment Interest Expense Interest Payable Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 48 Req 4C Show less Show less 90 Use the results of part 1 to complete the six-column table by first entering the appropriate adjustments for items a thro and then completing the adjusted trial balance columns. Hint: Item b requires two adjustments. Note: Do not round your intermediate calculations. BUG-OFF EXTERMINATORS December 31, 2021 Unadjusted Adjustments Account Title Trial Balance Adjusted Trial Balance Debit Credit Debit Credit Debit Credit Cash $ 19,800 Accounts receivable 30,980 Allowance for doubtful accounts $ 856 Merchandise inventory 15,900 Trucks 46,000 Accumulated depreciation-Trucks 0 Equipment 53,400 Accumulated depreciation-Equipment 14,580 Accounts payable 5,700 Estimated warranty liability 2,100 Unearned services revenue 0 Interest payable 0 Long-term notes payable 29,000 Common stock 27,000 Retained earnings 64.500 Unearned services revenue Interest payable Long-term notes payable 29,000 Common stock 27,000 Retained earnings 64,500 Dividends 24,000 Extermination services revenue 88,000 Interest revenue 900 Sales 105,826 Cost of goods sold 50,500 Depreciation expense-Trucks 0 Depreciation expense-Equipment 0 Wages expense 49,000 Interest expense Rent expense Bad debts expense 0 23,000 Miscellaneous expense 0 1,282 Repairs expense 15,000 D coursehero.com 9:01 Miscellaneous expense Repairs expense Utilities expense Warranty expense Totals 1,282 15,000 9,600 0 $ 338,462 $ 338,462 Journal entry worksheet > 1 2 345678 Record the adjustment to the Cash account. Note: Enter debits before credits. Transaction General Journal Debit Credit 90 1:Record the adjustment to the Cash account. Record the write off of uncollectible . accounts. Record the write off of uncollectible accounts. Record depreciation on the truck. Record depreciation on the equipment. Recorded the adjustment for unearned revenues. Record the estimated warranty expense. Record the adjustment for interest. Req 1 Req 2 Req 3 Req 4A Req 4B Re Prepare a single-step income statement for 2021. BUG-OFF EXTERMINATORS Income Statement For Year Ended December 31, 2021 coursehero.com 9:01 90 Req 1 Req 2 Req 3 Req 4A Req 48 Re Prepare a single-step income statement for 2021. BUG-OFF EXTERMINATORS Income Statement For Year Ended December 31, 2021 Revenues Total revenues Expenses $ 0 Total expenses $ 0 Req 1 Req 2 Req 3 Req 4A Req 4B Req 4C 5 Prepare the statement of retained earnings (cash dividends during 2021 were $24, BUG-OFF EXTERMINATORS Statement of Retained Earnings For Year Ended December 31, 2021 0 $ 0 Req 1 Req 2 Req3 Req 4A Req 48 Req 4C Prepare a classified balance sheet for December 31, 2021. Note: Amounts to be deducted should be indicated with a minus sign. Do not round your interme BUG-OFF EXTERMINATORS Balance Sheet December 31, 2021 Current assets Assets coursehero.com 5 9:02 90 Prepare the statement of retained earnings (cash dividends during 2021 were $24, BUG-OFF EXTERMINATORS Statement of Retained Earnings For Year Ended December 31, 2021 0 $ 0 Req 1 Req 2 Req 3 Req 4A Req 48 Req 4C Prepare a classified balance sheet for December 31, 2021. Note: Amounts to be deducted should be indicated with a minus sign. Do not round your interme BUG-OFF EXTERMINATORS Current assets: Total current assets Plant assets Total plant assets Total assets Current liabilities Balance Sheet December 31, 2021 Assets 0 $ Liabilities 0 Total plant assets 0 Total assets $ 0 Liabilities Current liabilities: Total current liabilities Long-term liabilities: Total liabilities Equity coursehero.com 69 $ 0 0 9:02 Current liabilities: Total current liabilities Long-term liabilities: Total liabilities Total equity Total liabilities and equity Liabilities Equity 89 EA $ 0 0 0 $ 0
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Related Book For
Fundamental Accounting Principles
ISBN: 978-0078110870
20th Edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
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