Comprehensive Problem Bug-Off Exterminators
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, 2013. |
BUG-OFF EXTERMINATORS | ||||||
December 31, 2013 | ||||||
Unadjusted Trial Balance |
||||||
Cash | $ | 17,900 | ||||
Accounts receivable | 5,900 | |||||
Allowance for doubtful accounts | $ | 814 | ||||
Merchandise inventory | 13,100 | |||||
Trucks | 31,620 | |||||
Accum. depreciation—Trucks | 0 | |||||
Equipment | 47,770 | |||||
Accum. depreciation—Equipment | 13,800 | |||||
Accounts payable | 6,500 | |||||
Estimated warranty liability | 1,310 | |||||
Unearned services revenue | 0 | |||||
Interest payable | 0 | |||||
Long-term notes payable | 14,100 | |||||
D. Buggs, Capital | 68,930 | |||||
D. Buggs, Withdrawals | 11,200 | |||||
Extermination services revenue | 59,690 | |||||
Interest revenue | 854 | |||||
Sales (of merchandise) | 71,526 | |||||
Cost of goods sold | 47,900 | |||||
Depreciation expense—Trucks | 0 | |||||
Depreciation expense—Equipment | 0 | |||||
Wages expense | 36,500 | |||||
Interest expense | 0 | |||||
Rent expense | 9,200 | |||||
Bad debts expense | 0 | |||||
Miscellaneous expense | 1,234 | |||||
Repairs expense | 8,700 | |||||
Utilities expense | 6,500 | |||||
Warranty expense | 0 | |||||
Totals | $ | 237,524 | $ | 237,524 | ||
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, 2013, includes the following facts. |
Cash balance per bank | $ | 13,900 |
Cash balance per books | 17,900 | |
Outstanding checks | 1,960 | |
Deposit in transit | 2,410 | |
Interest earned (on bank account) | 35 | |
Bank service charges (miscellaneous expense) | 22 | |
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 $670 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 $718. |
c. |
A truck is purchased and placed in service on January 1, 2013. Its cost is being depreciated with the straight-line method using the following facts and estimates. |
Original cost | $ | 31,620 |
Expected salvage value | 7,100 | |
Useful life (years) | 4 | |
d. |
Two items of equipment (a sprayer and an injector) were purchased and put into service in early January 2011. They are being depreciated with the straight-line method using these facts and estimates. |
Sprayer | Injector | ||||
Original cost | $ | 30,020 | $ | 17,750 | |
Expected salvage value | 4,900 | 1,600 | |||
Useful life (years) | 8 | 5 | |||
e. |
On August 1, 2013, the company is paid $4,680 cash in advance to provide monthly service for an apartment complex for one year. The company began providing the services in August. 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 1.5% of the extermination services revenue of $56,960 for 2013. No warranty expense has been recorded for 2013. All costs of servicing warranties in 2013 were properly debited to the Estimated Warranty Liability account. |
g. |
The $14,100 long-term note is an 10%, 5-year, interest-bearing note with interest payable annually on December 31. The note was signed with First National Bank on December 31, 2013. |
h. |
The ending inventory of merchandise is counted and determined to have a cost of $13,100. Bug-Off uses a perpetual inventory system. |
Required: |
1. |
Use the preceding information to 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 2013. |
d. |
Depreciation expense for the two items of equipment used during year 2013. |
e. |
The adjusted 2013 ending balances of the Extermination Services Revenue and Unearned Services Revenue accounts. (Do not round your intermediate calculations.) |
f. |
The adjusted 2013 ending balances of the accounts for Warranty Expense and Estimated Warranty Liability. |
g. |
The adjusted 2013 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.) (Do not round your intermediate calculations.) |
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. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field. Do not round your intermediate calculations.) |
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, 2013.
Comprehensive Problem Bug-Off Exterminators Bug-Off Exterminators provides pest control services and sells extermination products manufactured by...
Complete the income statement. 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,...
Complete balance sheet. 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...
Complete SOE. 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....
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 Cash 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 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...
Worksheet Adjustments - Prepare adjustments for the following transactions in journal entry form and also record each adjustment on the worksheet using the Unadjusted Trial Balance of Bugs-Off Exterminators (See Comprehensive Problem at the end of Chapter 11 - Pg. 504). Complete worksheet through adjusted trial balance and prepare an income statement, statement of owner's equity and balance sheet. a. Bug-Off Exterminators uses the allowance method when accounting for bad debts. The company has to write off an accounts receivable...
Hi, finally got the first part, correct. If you can please please do the transaction list and the income statement. Should be easier with the answers the the first to but im stuck. I just need the transaction lists answered and the income statement please. Bug-Off Exterminators provides pest control services and sells extermination products manufactured by other companies. Following is che company's unadjusted trial balance as of December 31, 2019. December 31, 2019 Unadjusted Trial Balance $ 19, 200...
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