Bug-Off Exterminators provides pest control services and sells extermination p Following is the company's unadjusted trial balance as of December 31, 2019. December 31, 2019 Unadjusted Trial Balance Cash $ 17,800 Accounts receivable 4, 400 Allowance for doubtful accounts $ 836 Merchandise inventory 10,900 Trucks 36,006 Accum. depreciation-Trucks Equipment 49, 000 Accum. depreciation-Equipment 15, 400 Accounts payable 5, 200 Estimated warranty liability 1 , 600 Unearned services revenue Interest payable Long-term notes payable 17, 060 D. Buggs, Capital 58, 590 D. Buggs, Withdrawals 14, 000 Extermination services revenue 57, 375 Interest revenue 880 Sales (of merchandise) 73, 651 Cost of goods sold 47, 500 Depreciation expense-Trucks Depreciation expense-Equipment Wages expense 39 , 080 Interest expense Rent expense 13,00 Bad debts expense Miscellaneous expense 1, 242 Repairs expense 10,000 Utilities expense 7,600 Warranty expense Totals $250, 442 $250, 442 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 $15, 500 Cash balance per books Outstanding checks 2 , 080 Deposit in transit 2, 656 Interest earned (on bank account) 60 Bank service charges (miscellaneous expense) 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.) . An examination of customers' accounts shows that accounts totaling $683 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 $720. . 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 $34,000 Expected salvage value $ 9,600 e (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 $30, 200 $18, 800 Expected salvage value $ 3,080 $ 2,900 Useful life (years) e. On September 1, 2019, 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. . 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 $62,375 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 $17,000 long-term note is an 8%, five-year, interest-bearing note with interest payable 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 $10,900. 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 nse for th ring 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. T. 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. BUG-OFF EXTERMINATORS December 31, 2019 Reconciled balance Unadjusted Adjustments Adjusted Omitted check Trial Balance Trial Balance b. Necessary adjustment Account Title Debit Credit Debit Credit Debit Credit Depreciation expense Cash $ 17,800 Accounts receivable 4,400 d. Sprayer Injector Allowance for doubtful accounts 836 Depreciation expense Merchandise inventory 10,900 Trucks 36,000 Services Unearned Accum. deprec.-Trucks Revenue Services Revenue Equipment 49,000 Ending balances after adjustment Accum. deprec.-Equip 15,40 Accounts payable 5,200 Warranty Estimated Estim. warranty liability ,600 Expense Liability Unearned services rev Ending balances after adjustment Interest payable Long-term notes payable 7,00 Interest 68,500 Expense D. Buggs, Capital Payable Ending balances after adjustment D. Buggs, Withdrawals 14,000 Extermination services revenue 67,375 Interest revenue 880 Sales 73,651 Cost of goods sold 47,500 Deprec. expense-Trucks Deprec. expense-Equip Wages expense 39,000 Interest expense 0 Rent expense 13,000 Bad debts expense Miscellaneous expense 1,242 Repairs expense 0,000 Utilities expense 7.600 Warranty expense Totals $ 250,442 $ 250,442