50.1K

Verified Solution

Link Copied!

Determine amounts for the following items:

Correct $($reconciled$)$ ending balance of Cash; and the amount of the omitted check.

Adjustment needed to obtain the correct ending balance of the Allowance for Doubtful Accounts.

Depreciation expense for the truck used during year $2021.$

Depreciation expense for the two items of equipment used during year $2021.$

The adjusted $2021$ ending balances of the Extermination Services Revenue and Unearned Services Revenue accounts.

The adjusted $2021$ ending balances of the Warranty Expense and the Estimated Warranty Liability accounts.

The adjusted $2021$ ending balances of the Interest Expense and the Interest Payable accounts.

$2.$ 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.

$3.$ 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.

$4$a$.$ Prepare a single$-$step income statement for $2021.$

$4$b$.$ Prepare the statement of owner$$s equity $($cash withdrawals during $2021$ were $$10,000$ and owner investments were $$0)$ for $2021.$

$4$c$.$ Prepare a classified balance sheet for December $31,2021.$

Show all imagesShow all images

Answer & Explanation Solved by verified expert

See Answer