Question

and the SUTA rate is 5.4% for the 4. Record the entry(ies) for the merchandise sold on March 25 if a 4% sales tax rate applies. CP 9 Bug-Off Exterminators provides pest control services and sells extermination products manufac- tured by other companies. The following six-column table contains the company's unadjusted trial bal- ance as of December 31, 2019 P B Adjusted Unadjusted Trial Balance Trial Balance Adjustments December 31, 2019 $ 17,000 4,000 Cash.. Accounts receivable 828 Allowance for doubtful accounts Merchandise inventory $ 11,700 32,000 Trucks.. Accum, depreciation-Trucks Equipment.. Accum. depreciation-Equipment Accounts payable Estimated warranty liability. Unearned services revenue 0 45,000 12,200 5,000 1,400 Interest payable... 15,000 Long-term notes payable 10,000 49,700 Common stock Retained earnings. Dividends... Extermination services revenue 10,000 60,000 872 Interest revenue 71,026 Sales (of merchandise) Cost of goods sold.. Depreciation expense-Trucks. Depreciation expense-Equipment 46,300 0 0 35,000 Wages expense. 0 Interest expense 9,000 Rent expense.. 0 Bad debts expense 1,226 Miscellaneous expense. 8,000 Repairs expense 6,800 Utilities expense 0 Warranty expense Totals $226,026 $226,026

please briefly explain how we do adjustments Thank u in Advance.

Answer 1

I-@) Correct Ending Balance and Omitted check- Bank Reconcillation statement Cash Balance as Per Bank Add: Deposit in Transit Less: checks outstanding $15100 $ 2450 - $ 1800 $15750 Cash Balance Per Books Add: Interest earned Less: service charges Less: Cancelled check $19000 $52 - $15 - 91287 $15, 750 Therefore, correct Omitted Ending check Balance = $15750 = $1287 (6) Adjustment needed to balance of the Allowance $700 obtain the correct ending for Doubtfull acconts are (c) expense for the truck used Computation of Depreciation during year 2019 Depreciation cost - Salvage value Useful life $32000 - $ 8000 = $6000

expense for the equipment d) Computation used during of Depreciation year 2019 Sprayer $27000 $3000 $24000 Injector $18000 $ 2500 $ 15500 Oniginal Cost Less: Slavage value Net Value Life Deprecition expense I cost-salvage 7 Life J 5 $3000 $ 3 100