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Project 2 Example

The document outlines the financial adjustments required for Bug-Off, including reconciled cash balances, adjustments for doubtful accounts, and depreciation expenses for various assets. It also details the adjusted ending balances for revenue, warranty expenses, and interest accounts. Additionally, it provides the necessary journal entries to record these adjustments.

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olowospencer450
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44 views7 pages

Project 2 Example

The document outlines the financial adjustments required for Bug-Off, including reconciled cash balances, adjustments for doubtful accounts, and depreciation expenses for various assets. It also details the adjusted ending balances for revenue, warranty expenses, and interest accounts. Additionally, it provides the necessary journal entries to record these adjustments.

Uploaded by

olowospencer450
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

Requirements:

1. 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 2021.
d.Depreciation expense for the two items of equipment used during year 2021.
e. The adjusted 2021 ending balances of the Extermination Services Revenue and Unearned Services Revenue acc
f. The adjusted 2021 ending balances of the Warranty Expense and the Estimated Warranty Liability accounts.
g. The adjusted 2021 ending balances of the Interest Expense and the Interest Payable accounts.

2. Prepare journal entries to record the adjustments. Assume Bug-Off’s adjusted balance for Merchandise Inven
year-end physical count.
ck.
oubtful Accounts.

Unearned Services Revenue accounts.


Warranty Liability accounts.
ble accounts.

alance for Merchandise Inventory matches the


Question Answer
a reconciled cash balance 16,950
a amount of omitted check 2,499
b allowance for doubtful accounts adjustment 599
c depreciation expense - truck 7,800
d depreciation expense - sprayer 3,300
d depreciation expense - injector 3,820
e ending balance of extermination services revenue after adjustment 72,600
e ending balance of unearned services revenue after adjustment 11,400
f ending balance of warranty expense after adjustment 1,815
f ending balance of warranty payable after adjustment 3,815
g ending balance of interest expense after adjustment -
g ending balance of interest payable after adjustment -

Date Accounts Debit Credit


a miscellaneous expense 27
account payable 2,499
interest revenue 76
cash 2,450

b1 allowance for doubtful accounts 691


accounts receivable 691

b2 bad debt expense 599


allowance for doubtful accounts 599

c depreciation expense - trucks 7,800


accumulated depreciation - trucks 7,800

d depreciation expense - equipment 7,120


accumulated depreciation - equip 7,120

e extermination services revenue 11,400


unearned services revenue 11,400

f warranty expense 1,815


warranty liability 1,815

g NA
Calculations

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