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 balance sheet.

Answer 1

Ginscen: 1 SPO 17 000 Given that e- Cash balance per bank Cash balance to per books Outstanding checks Deposit in taransit Interest earned Bant Service changes 1800 2450 52 Now, Bank Seconciliation statement 15100 + 2450 -1800 - 15750 And 17000 + 58 -15 - 1287 = 15750 Cash Bal as per books – 17000 Add interest Carned - 52 Less: Service charges - -15 Les :. Cancelled checks - -1987 015750 <for corect ending balance

Accounts totaling - $679 Doubtfel accounts should be $700. There will be some adjustments are needed to obtain Correct allowance Ending balance accounts $700 for doubfiel Original cost $32000 $ 8000 Expected salage value useful life (years) - 4 we know that Depseciation - Cost -salvage valore useful life Substitute those values. 32000 - 8000 24000 Depreciation --- - 1. Depreciation - 6000

Sprayer $ 27000 Enjector $ 18000 Original Expected useful cost saluge value life (years) $ 2500 - $3000 - $ Depreciation (spaceyer ) 27000 - 3000 24000 - $3000 Depreciation Cinjected) 18000 - 2500 15500 - $3100