70.2K

Verified Solution

Link Copied!

and the SUTA rate is 4% for the company. (Round amounts to the near 4. Record the entry(ies) for the merchandise sold on March 25 if a 4% sa KRF CP 11 Bug-Off Exterminators provides pest control services and sells factured by other companies. The following six-column table contains balance as of December 31, 2017. BUG-OFF EXTERMINATORS December 31, 2017 ors 11) Unadjusted Trial Balance Adjust $ 17,000 4,000 Cash........ Accounts receivable ............ Allowance for doubtful accounts...... Merchandise inventory.......... $ 828 11,700 32,000 0 45.000 12,200 5,000 1,400 15.000 59.700 10,000 ACC. depreciation ---Trucks.... Etuit A depreciation Equipment.... Acronise .... .... Estimated warranty fiability........... Unsaned 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 0 1.226 8,000 6,800 $226,026 $226,02 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 of $1,000 that will not be collected b. An aging of account receivable reflected a credit balance of $700 that is to be reported for the allowance for doubtful accounts as of December 31, 2017. c. A trucks costing $32,000 were purchased on 1/1/2017. It is to be used for 6 years and has a salvage value of $2,000 at the end of 6 years. Depreciation is calculated using the straight line method. Record depreciation expense on the truck for 2017. d. Bug-Off Exterminators owned equipment of consisting of a sprayer and an injector as of 1/1/2017. Both are depreciated using the straight line method. The sprayer cost $27,000, has a useful file of 6 years and a salvage value of $ $6,000 at the end of 6 years. The injector cost $18,000, has a useful life of 4 years, and a salvage value of $10,800 at the end of 4 years. Record the depreciation on this equipment for 2017. e. Bugs-Off received $3,840 on 6/1/2017 for extermination services that are to be provided for one year commencing 6/1/2017. This advance payment was credited to Extermination services revenue when it was received. Record the adjusting entry required on 12/31/2017 in connection with this advance payment received. f. The company offers a warranty for services it sells. The expected cost of providing warranty services is 2% of the extermination services revenue of $58,400 for 2017. No warranty expense has been recorded for 2017. Record the expected warranty cost on the 2017 extermination revenue service

Answer & Explanation Solved by verified expert

See Answer