Question

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, 2019. December 31, 2019 Unadjusted Trial Balance $ 17,000 4,000 $ 828 11,700 32,000 45,000 12,200 5,000 1,400 15,000 59,700 10,000 Cash Accounts receivable Allowance for doubtful accounts Merchandise inventory Trucks Accum. depreciation-Trucks Equipment Accum. depreciation-Equipment Accounts payable Estimated warranty liability Unearned services revenue Interest payable Long-term notes payable D. Buggs, Capital D. Buggs, Withdrawals Extermination services revenue Interest revenue Sales (of merchandise) Cost of goods sold Depreciation expense-Trucks Depreciation expense-Equipment Wages expense Interest expense Rent expense Bad debts expense Miscellaneous expense Repairs expense Utilities expense Warranty expense Totals 60,000 872 71,026 46,300 35,000 9,000 1,226 8,000 6,800 $226,026 $226,026 The following information in a through h applies to the company at the end of the current year.

Complete SOE.

Answer 1

269 270 272 128,786 46,300 82,486 274 276 277 278 279 BUG-OFF EXTERMINATORS Income Statement For the Year Ended December 31, 2019 Extermination services revenue 57,760 Sales (of merchandise) 71,026 Total Revenue Cost of goods sold Gross Profit Operating Expenses Deprec. expense-Trucks 6,000 Deprec. expense-Equip 6,100 Wages expense 35,000 Rent expense 9,000 Bad debts expense 551 Miscellaneous expense 1,241 Repairs expense 8,000 Utilities expense 6,800 Warranty expense 1,444 Total Operating Expenses Operating Income Other Revenues and expenses) Interest expense Interest revenue 924 Net Income 282 283 284 285 286 74,136 8,350 288 289 924 9,274 290

293 295 BUG-OFF EXTERMINATORS Statement of Owner's Equity For the Year Ended December 31, 2019 D.Buggs Capital, 1st Jan. 2019 59,700 Add Net Income 9,274 68,974 Less D.Buggs , Withdrawls 10,000 D.Buggs Capital ,31st Dec. 2019 58,974 296 298 299 300