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Use the results below also inside the bracket to answer the chart 1 below 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.)

Solution and Explanation :- . Reconciled balance Necessary adjustme Depreciation expense

$ 6.400 4,600 $ 3,420 es Unearned Revenue Services Ending balances after adjustment $ 77,400 $ 14,600 Warranty Warranty $ 1,935 $ 4,135

Ending balances after adjustment Expense Payat Ending balances after adjustment Working :

Cash balance per ban Add : Deposit in transit Less: Outstand Reconciled balance Cash balan Add: Interest earned

20283 2903 17250

Less: Bank charges Less: Omitted check ($20253 - Reconciled balance

Allowance Accounts Beg. Bal. 695 615 Adjustment

Original cost of Truck () Expected salvage valu Depreciable cost Useful life (in year ($2560ation expense - Truck

14400 Sprayer 36800 17100 21780 4600 3420

Original cost Depreciable cost Useful life (in years) CATCHable Cost ($179 Cation expense ( $36800 / 8 ) e. Unearned Services Revenue = $21900 x 8/12 = $14600

Extermination Services Revenue = $92000 - $14600 = $77400 Warranty Expense = 2.5% x $77400 = $1935 stimated Warranty Liability = $2200 + $1935 = $4135 Since the note is signed on December 31, 2019, no interest is required to be acc

BUG-OFF EXTERMINATORS December 31, 2019 Unadjusted Trial Balance Adjustments Adjusted Trial Balance Account Title Debit Credit Debit Credit Debit Credit Cash $20,200 Accounts receivable 5,600 Allowance for doubtful accounts $860 Merchandise inventory 16,500 Trucks 48,000 Accum. deprec.Trucks 0 Equipment 97,000 Accum. deprec.Equip 25,000 Accounts payable 5,800 Estim. warranty liability 2,200 Unearned services rev 0 Interest payable 0 Long-term notes payable 31,000 Common stock 26,000 Retained earnings 70,100 Dividends 26,000 Extermination services revenue 92,000 Interest revenue 904 Sales 113,826 Cost of goods sold 51,100 Deprec. expenseTrucks 0 Deprec. expenseEquip 0 Wages expense 51,000 Interest expense 0 Rent expense 25,000 Bad debts expense 0 Miscellaneous expense 1,290 Repairs expense 16,000 Utilities expense 10,000 Warranty expense 0 Totals $367,690 $367,690 $0 $0 $0 $0

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