Bug-Off Exterminators provides pest control services and sells extermination products manu- factured by other companies. Following is the company's unadjusted trial balance as of De- cember 31, 2021. 0 December 31, 2021 Unadjusted Trial Balance Debit Credit Cash $ 20,200 Accounts receivable 37,920 Allowance for doubtful accounts $ 860 Merchandise inventory 16,500 Trucks 48,000 Accumulated depreciation Trucks Equipment 54,600 Accumulated depreciation Equipment 14,920 Accounts payable 5,800 Estimated warranty liability 2,200 Unearned services revenue 0 Interest payable 0 Long-term notes payable 31,000 D. Buggs, Capital 96, 100 D. Buggs, Withdrawals 26,000 Extermination services revenue 92,000 Interest revenue 904 Sales (of merchandise) 113, 826 Cost of goods sold 51,100 Depreciation expense-Trucks Depreciation expense-Equipment 0 Wages expense 51.000 Interest expense Rent expense 25,000 Bad debts expense 0 Miscellaneous expense 1,290 Repairs expense 16,000 Utilities expense 10,000 Warranty expense 0 Totals S 357, 610 $ 357, 610 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 $ 16,700 Cash balance per books 20, 200 Outstanding checks 2,600 Deposit in transit 3,250 Interest earned (on bank account) 84 Bank service charges (miscellaneous expense) 31 Reported on the bank statement is a canceled check that the company failed to record. (Infor- mation 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 $695 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 $780. c. A truck is purchased and placed in service on January 1, 2021. Its cost is being depreci- ated with the straight-line method using the following facts and estimates. Original cost $ 48,000 Expected salvage value$ 14,400 Useful life (years) 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 cont S 30, 200 524,400 Expected salvage value $ 3,000 $ 4,100 Useful life (years) 8 5 e. On September 1, 2021, the company is paid $21.900 cash in advance to provide monthly service for an apartment complex for one year. The company began providing the ser- vices in September. When the cash was received the full amount was credited to the Ex- termination 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 $77.400 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 $31.000 long-term note is an 8%, five-year, interest-bearing note with interest paya- ble annually on December 31. The note was signed with First National Bank on Decem- ber 31, 2021. h. The ending inventory of merchandise is counted and determined to have a cost of $14.900. 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 expense for the truek 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 Un- earned 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 ac- counts. 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 Un- earned Services Revenue accounts. (Do not round your intermediate calculations.) 1. 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 ac- counts $ 17 350 a. Reconciled balance of cash a. Omitted check EA 2.903 615 b. Necessary adjustment c. Depreciation expense $ $ 8.400 d. Depreciation expense Sprayer 13.400 $ Injector 4.060 Extermination Services Revenue S 77 400 Unearned Services Revenue S 14.600 e Ending balances after adjustment Estimated Warranty Expense Warranty Liability $ 1935 $ 4.135 f. Ending balances after adjustment Interest Expense g. Ending balances after adjustment Interest Payable S 0 Reg 2 > Reg 1 Req2 Reg 3 Req 4A Reg 40 Reg 4 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.) Account Title Adjusted Trial Balance Debit Credit 16,500 48,000 BUG OFF EXTERMINATORS December 31, 2021 Unadjusted Trial Balance Adjustments Debit Credit Debit Credit $ 20,200 37 920 S 860 16,500 48.000 0 54.600 14.920 5 800 2,200 0 0 31 000 96 100 26.000 92.000 904 113,826 51100 Cash Accounts receivable Allowance for doubtful accounts Merchandise inventory Trucks Accumulated depreciation-Trucks Equipment Accumulated depreciation Equipment Accounts payable Estimated warranty liability Uneared services revenue Interest payable Long-term notes payable 0 Bugos Capital D Buggs. Withdrawals Examination Services revenue terest revenue Sales cost of goods sold Depreciation expert Trucks Deprecatione come Wap 54 600 31000 96. 1001 113 826 54100 0 $1.000 181.000 ru LPUUTE Cash $ 20,200 37.920 Accounts receivable Allowance for doubtful accounts $ 860 16,500 48,000 16,500 48.000 0 54,600 54,600 14 920 5,800 2200 0 0 31.000 96,100 31.000 96.100 26.000 Merchandise inventory Trucks Accumulated depreciation-Trucks Equipment Accumulated depreciation Equipment Accounts payable Estimated warranty liability Uneamed services revenue Interest payable Long term notes payable D Buggs, Capital D. Buggs. Withdrawals Extermination services revenue Interest revenue Sales Cost of goods sold Depreciation expense Trucks Depreciation expense-Equipment Wages expense Interest expense Rent expense Bad debts expense Miscellaneous expense Reports opene Uutis expense Warranty expense Totals 92.000 904 113.826 113.826 51,100 51.100 0 0 51.000 51.000 0 25,000 25.000 0 1.290 16 000 10,000 0 5357 610$ 357 610S 16.000 10.000 05 0 5 212200 240 926 No Reg 1 Reg 2 Req3 Req 4A Reg 48 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 View journal entry worksheet Debit Credit Record the adjustment to the Cash account. Record the write off of uncollectible accounts. Record the adjustment for bad debts. 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 Note 1 journal entry has been entered Accumulated depreciation Equipment G Extermination Services revenue Unaamde 7 Warranty expense Estimated warranty Sability the first account held. Do not round your intermediate calculations.) View transaction list View journal entry worksheet No General Journal Transaction (a) Debit Credit 1 Accounts payable Miscellaneous expenses Interest revenue Cash 2 (61) Allowance for doubtful accounts Accounts receivable (62) Baddetts expense Allowance for doubtful accounts 4 Depreciation expense Trucks Accumulated depreciation-Trucks 5 10 Depreciation expense-Equipment Accumulated depreciation Equipment { Extermination services revenue Umeed Services revenue 7 Warranty expense Estimated warranty liability 8 (9) No pumantequiled ru LPUUTE Cash $ 20,200 37.920 Accounts receivable Allowance for doubtful accounts $ 860 16,500 48,000 16,500 48.000 0 54,600 54,600 14 920 5,800 2200 0 0 31.000 96,100 31.000 96.100 26.000 Merchandise inventory Trucks Accumulated depreciation-Trucks Equipment Accumulated depreciation Equipment Accounts payable Estimated warranty liability Uneamed services revenue Interest payable Long term notes payable D Buggs, Capital D. Buggs. Withdrawals Extermination services revenue Interest revenue Sales Cost of goods sold Depreciation expense Trucks Depreciation expense-Equipment Wages expense Interest expense Rent expense Bad debts expense Miscellaneous expense Reports opene Uutis expense Warranty expense Totals 92.000 904 113.826 113.826 51,100 51.100 0 0 51.000 51.000 0 25,000 25.000 0 1.290 16 000 10,000 0 5357 610$ 357 610S 16.000 10.000 05 0 5 212200 240 926 No 4b. Prepare the statement of owner's equity (cash withdrawals during 2021 were $26,000 and owner investments were $0) for 20 4c. Prepare a classified balance sheet for December 31, 2021 Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req3 Reg 4A Req 48 Req 4C Prepare the statement of owner's equity (cash withdrawals during 2021 were $26,000 and owner investments were $0) for 2021. BUG OFF EXTERMINATORS Statement of Owner's Equity For Year Ended December 31, 2021 Add Investments by owner 0 $ 0 Req 4A Reg 10 > Prepare a classified balance sheet for December 31, 2021. (Amounts to be deducted should be indicated with a minus sign. Do not round your intermediate calculations) BUG OFF EXTERMINATORS Balance Sheet December 31, 2021 Assets Current assets Total current assets Plant assets Total plant assets Total assets 0 Liabilities Current bites Total current liabilities 5 0 Tula current assets Plant assets 0 0 Total plant assets Total assets 0 GA 0 Liabilities Current liabilities Total current liabilities 0 Long-term liabilities Total liabilities Equity Total liabilities and equity $ 0