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