December 31, 2020 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, 2020. Unadjusted Trial Balance Cash $ 19,600 Accounts receivable Merchandise inventory Trucks 5,300 Equipment Allowance for doubtful accounts Accumulated depreciation-Trucks Accumulated depreciation-Equipment Accounts payable $8541 15,608 45,000 83,200 22,600 5,650 Estimated warranty liability 2,050 Unearned services revenue 0 Interest payable 0 Long-term notes payable. 28,000 Common stock 23,000 Retained earnings 66,200 Dividends 23,000 Extermination services revenue 86,000 Interest revenue 898. Sales (of merchandise) 101,826 Cost of goods sold 50,200 Depreciation expense-Trucks Depreciation expense-Equipment Wages expense Interest expense Rent expense Bad debts expense Miscellaneous expense Repairs expense Utilities expense Warranty expense Totals 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, 2020, includes the following facts. Cash balance per bank Cash balance per books Outstanding checks $ 16,400 19,608 2,450 48,000 22,000 0 1,278 14,500 9,400 $ 337,078 $337,078 a. The bank reconciliation as of December 31, 2020, 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) $ 16,400 19,600 2,458 3,100 78 28 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 $692 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 $765. c. A truck is purchased and placed in service on January 1, 2020. Its cost is being depreciated with the straight-line method using the following facts and estimates. Original cost Expected salvage value Useful life (years) $ 38,508 $ 13,200 4 d. Two items of equipment (a sprayer and an injector) were purchased and put into service in early January 2018. They are being depreciated with the straight-line method using these facts and estimates. Sprayer Injector Original cost $ 37,400 Expected salvage value $ 3,000 $ 20,600 $3,800 Useful Life (years) 8 5 e. On September 1, 2020, the company is paid $18,300 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 $73,800 for 2020. No warranty expense has been recorded for 2020. All costs of servicing warranties in 2020 were properly debited to the Estimated Warranty Liability account. g. The $21,500 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, 2020. h. The ending inventory of merchandise is counted and determined to have a cost of $14,300. Bug-Off uses a perpetual inventory system. Required: 1. Determine amounts for the following items: Contrarile andinn halance of Cark and the amount of the amitted chack 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 2020. d. Depreciation expense for the two items of equipment used during year 2020. e. The adjusted 2020 ending balances of the Extermination Services Revenue and Unearned Services Revenue accounts. The adjusted 2020 ending balances of the accounts for Warranty Expense and Estimated Warranty Liability. 9. The adjusted 2020 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. 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 2020. 4b. Prepare the statement of retained earnings (cash dividends during 2020 were $23,000) for 2020. 4c. Prepare a classified balance sheet for December 31, 2020. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 48 Req 4C 3. 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. Depreciation expense for the truck used during year 2020. d. Depreciation expense for the two items of equipment used during year 2020. The adjusted 2020 ending balances of the Extermination Services Revenue and Unearned Services Revenue accounts. Note: Do not round your Intermediate calculations. f. The adjusted 2020 ending balances of the accounts for Warranty Expense and Estimated Warranty Liability. The adjusted 2020 ending balances of the accounts for Interest Expense and Interest Payable. Reconciled balance Omited check b. Necessary adjustment c. Depreciation expense Show less A