Comprehensive ProBublem BugOff Exterminators Algo BugOff Exterminators provides pest control services and sells extermination products manufactured by other companies Following is the companys unadjusted trial balance as of December 31 2021 December 31 2021 Unadjusted Trial Balance Debit Credit Cash 21000 Accounts receivable 51800 Allowance for doubtful accounts 868 Merchandise inventory 17700 Trucks 52000 Accumulated depreciationTrucks 0 Equipment 57000 Accumulated depreciationEquipment 15600 Accounts payable 6000 Estimated warranty liability 2400 Unearned services revenue 0 Interest payable 0 Longterm notes payable 35000 Common stock 39000 Retained earnings 66300 Dividends 30000 Extermination services revenue 100000 Interest revenue 912 Sales of merchandise 129826 Cost of goods sold 52300 Depreciation expenseTrucks 0 Depreciation expenseEquipment 0 Wages expense 55000 Interest expense 0 Rent expense 29000 Bad debts expense 0 Miscellaneous expense 1306 Repairs expense 18000 Utilities expense 10800 Warranty expense 0 Totals 395906 395906 The following information in a through h applies to the company at the end of the current year The bank reconciliation as of December 31 2021 includes the following facts Cash balance per bank 17100 Cash balance per books 21000 Outstanding checks 2800 Deposit in transit 3450 Interest earned on bank account 92 Bank service charges miscellaneous expense 35 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 699 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 800 A truck is purchased and placed in service on January 1 2021 Its cost is being depreciated with the straightline method using the following facts and estimates Original cost 52000 Expected salvage value 16000 Useful life years 4 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 straightline method using these facts and estimates Sprayer Injector Original cost 31000 26000 Expected salvage value 3000 4500 Useful life years 8 5 On September 1 2021 the company is paid 26700 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 25 of the extermination services revenue of 82200 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 The 35000 longterm note is an 8 fiveyear interestbearing note with interest payable annually on December 31 The note was signed with First National Bank on December 31 2021 The ending inventory of merchandise is counted and determined to have a cost of 15700 BugOff uses a perpetual inventory system Required 1 Determine amounts for the following items Correct reconciled ending balance of Cash and the amount of the omitted check Adjustment needed to obtain the correct ending balance of the Allowance for Doubtful Accounts Depreciation expense for the truck used during year 2021 Depreciation expense for the two items of equipment used during year 2021 The adjusted 2021 ending balances of the Extermination Services Revenue and Unearned Services Revenue accounts The adjusted 2021 ending balances of the Warranty Expense and the Estimated Warranty Liability accounts The adjusted 2021 ending balances of the Interest Expense and the Interest Payable accounts 2 Use the results of part 1 to complete the sixcolumn 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 sixcolumn table Assume BugOffs adjusted balance for Merchandise Inventory matches the yearend physical count 4a Prepare a singlestep income statement for 2021 4b Prepare the statement of retained earnings cash dividends during 2021 were 30000 for 2021 4c Prepare a classified balance sheet for December 31 2021