1 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. December 31, 2021 Unadjusted Trial Balance eBook Cash Accounts receivable. Allowance for doubtful accounts Merchandise inventory Trucks Accumulated depreciation-Trucks Equipment Accumulated depreciation-Equipment Accounts payable Estimated warranty liability Debit Credit $ 17,400 3,740 $832 12,300 34,000 46,200 12,540 5,100 1,500 Unearned services revenue 0 Interest payable Long-term notes payable 17,000 Common stock 24,000 Retained earnings 39,900 Dividends 12,000 Extermination services revenue 64,000 Interest revenue: 876 Sales (of merchandise) 72,226 Cost of goods sold 46,900 Depreciation expense-Trucks 8 Depreciation expense-Equipment Wages expense 37,000 Interest expense Rent expense 11,000 Bad debts expense e Miscellaneous expense 1,234 Repairs expense 9,000 Utilities expense 7,200 Warranty expense 0 Totals $237,974 $ 237,974 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. 1 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 Outstanding checks Deposit in transit Interest earned (on bank account) Bank service charges (niscellaneous expense) $ 15,300 17,400 1,900 2,550 56 17 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 $681 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 $710. 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 Expected salvage value $ 34,000 $8,800 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 Injector Original cost Sprayer $27,400 Expected salvage value $3,000 $ 18,800 $2,700 Useful life (years) 8 5 e. On September 1, 2021, the company is paid $5300 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 2.50% of the extermination services revenue of $60,600 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. a. The $17,000 long-term note is an 8%, five-year, interest-bearing note with interest cavable annually on December 31. The note was 1 Sprayer Injector Original cost Expected salvage value i $ 27,400 $3,000 $ 18,800 $2,700 Useful Life (years), eBook e. On September 1, 2021, the company is paid $5,100 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 2.50% of the extermination services revenue of $60,600 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 $17,000 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 $12,100. 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 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 Uneamed 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 $12,000), for 2021 4c. Prepare a classified balance sheet for December 31, 2021 Complete this question by entering your answers in the tabs below