Question
Alpha Dog formed a corporation on January 1, 2016 to provide construction services in the town of Elven, Rivendell, ME. The following is the December
Alpha Dog formed a corporation on January 1, 2016 to provide construction services in the town of Elven, Rivendell, ME. The following is the December 31th Unadjusted Trial Balance.
Alpha Dog Corporation | ||
Unadjusted Trial Balance | ||
12/31/16 | ||
Accounts | Debit | Credit |
Cash | $532,000 |
|
Accounts Receivable | 172,000 |
|
Supplies | 85,000 |
|
Prepaid Insurance | 36,000 |
|
Equipment | 2,400,000 |
|
Accounts Payable |
| $32,000 |
Unearned Revenue |
| 100,000 |
Note Payable (Long Term) |
| 1,420,000 |
Capital Stock |
| 1,075,000 |
Revenues |
| 1,397,000 |
Wages Expense | 497,000 |
|
Fuel Expense | 62,000 |
|
Rent Expense | 180,000 |
|
Interest Expense | 60,000 | ________ |
Totals | $4,024,000 | $4,024,000 |
The following information is provided regarding end of the FY required adjusting entries. Also assume that no monthly adjusting entries were done.
Instructions:
Prepare in journal form, all adjusting entries on 12/31/16 based on the additional information below. There may be more rows than needed so as to have spacing between each adjusting entry.
1. Equipment was purchased on January 1 for 2,400,000, has an estimated life or 5 years with an estimated salvage value of $200,000. Alpha Dog used the double declining balance method for depreciation. Compute the Depreciation expense on 12/31/16.
2. Supplies on hand at year end are $20,000.
3. The insurance policy is for 12 months and was purchased on March 1.
4. Services performed and were unrecorded were for $25,000.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started