Question
Alpha Dog formed a corporation on January 2, 2017 to provide construction services in the town of Elven, Rivendell, ME. The following is the December
Alpha Dog formed a corporation on January 2, 2017 to provide construction services in the town of Elven, Rivendell, ME. The following is the December 31 the Unadjusted trial balance.
Alpha Dog Corporation
Unadjusted Trial Balance
12/31/16
Account
Debit
Credit
Cash
$532,000
Accounts receivable
417,000
Supplies
85,000
Prepaid Insurance
24,000
Equipment
2,400,000
Accounts Payable
$20,000
Unearned Revenue
100,000
Note Payable (long Term)
1,420,000
Capital stock
1,075,000
revenues
1,642,000
Wages expense
497,000
Fuel expense
62,000
Rent expense
180,000
interest expense
60,000
totals
$4,257,000
$4,257,000
The following information is provided regarding end of the FY required adjusting entries.
1.Equipment was purchased on March 1, it has an estimated life or 5 years with an estimated salvage valve of $200,000. Alpha Dog used the double declining balance method for depreciation.
2.Supplies on hand at year end are $20,000
3.On 1/1/2017 interest of $57,000 and a principle payment of $20,000 must be made to the bank.
4.The insurance policy is for 12 months and was purchased on March 1.
5.Unbilled services that have been provided customers at year end is $25,000. Billings will be process the first week of January.
6.General Journal:
Date
Accounts
Debit
Credit
12/31/16
12/31/16
12/31/16
7.
2.Alpha Company had the following banking information from its bank statement dated July 31, 2017
item
Amount
Cash balance per bank (7/3/17)
$3,350
Bank Service Charges
75
Collection of Note Receivable from Mr. Yankee including the interest of $145
3,145
Customer (Mr. Welcher) returned cheque NSF
225
The following additional information was determined from a review of the cash payments & receipts and the cheque register for Alpha Company:
1.The following cheques had not cleared the bank as paid:
Date
Ck
Accounts Payable
Amount
5/25/17
1005
Bravo Office Supply Store
$250
7/15/17
1025
Zulu Electric Company
1,900
7/30/17
1030
Bravo Office Supply Store
250
3.Alpha Company had the following events during FY 2017:
Date:Event
Jan. 1Accepted Bravo Company`s 4 month, 12% note, as settlement of an outstanding $15,000 accounts receivable for goods sold in the prior year.
Jan 15Sold, $10,000 of equipment (from merchandise inventory) to Charlie Company and accepted a 9 month, 12% note
Jan 20Loaned Delta Company $30,000 cash and accepted a 90 days, 12% note.
April 20 Received payment from Delta Company
Julmay 1Received payment from Bravo
Oct 16 Received payment from Charlie Company
Alpha Company uses the periodic system for inventory sales and prepares quarterly adjusting entries. Use this information to prepare the compound general journal entries (without explanation) for all events related to the notes. Students may add the company names after the notes receivable account names to further identify the various subsidiary note transactions.
Calculations for any interest must be done on a standard 360-day year for notes where the term is set in days. Use whole months (or fractions thereof) for notes with term limits set in months or years.
General Journal
Date
Accounts
Debit
Credit
Jan. 2
Jan. 15
Jan. 20
Mar. 31
Apr. 20
May 1
June 30
Sept. 30
Oct. 16
4.Alpha Company prepares quarterly adjusting entries. On August 1, 2017. Alpha Company purchased equipment with a sticker price of $8,515 and signed a note due in 9 months for $10,000 that included interest in the valve of the note. Use this information to prepare the general journal entry for the November 1 equipment purchase. Prepare any additional general journal adjusting entries for Fiscal Years 2017 $ 2018. Additionally, prepare the general journal entry to record the payment of the note when due in 2018.
Date
Accounts
Debit
Credit
5.Alpha Company had the following banking information from its bank statement dated July 31, 2017:
Item
Amount
Cash Balance per bank(7/3/17)
$3,350
Bank Service Charges
75
Collection of Note Receivable from Mr Yankee including the interest of $145
3,145
Customer (Mr. Welcher) returned cheque NSF
225
The following additional information was determined from a review of the cash payments & receipts and the cheque register for Alpha Company:
A.The following cheques had not cleared the bank as paid:
Date
Ck #
Account Payable
Amount
5/25/17
1005
Bravo Office Supply Store
$250
7/15/17
1025
Zulu Electric Company
1900
7/30/17
1030
Bravo Office Supply Store
250
B.The following information was recorded in Alpha`s cash receipts ledger and have not yet been recorded in the bank statements:
.
Date
item
Amount
5/25/17
Store Cash Sale
$200
7/31/17
Store Cash Sales
200
7/31/17
Cheques from Store Sales
5,500
7/31/17
Cash balance per General Ledger (7/31/17)
4,005
Prepare, in good form, the July 31, 2017 Bank Reconciliation for Alpha Company.
Bank Reconciliation:
Bank Reconciliation
6.During the fourth quarter of 2017, Alpha Company acquired the following trading securities:
Date
Company
# of Shares
Price per Share
10/15
Yankee Company
1,000
$50
10/25
X-ray Company
1,000
35
10/31
Zulu Company
1,000
26
On November 10th, Alpha Company sold the X-ray Company stock for 29 per share. On December 24th, Zulu Company paid dividends of $01.15 per share. The following were the year-end market values;
Company
FMV per Share
Yankee Company
$545
X-ray Company
25
Zulu Company
120
What the total dollar values that Alpha Company should record for the following: (Enter whole dollars only, for loss amounts enter the $ & value inside of the brackets.)
1.Realized Gain/Loss during 2017
2.Unrealized Gain / Loss on Trading Securities for 2017
3.Dividend Income
7.Alpha Company uses aging of Accounts Receivable to estimate uncollectible. The unadjusted Trial balance amount of accounts receivable on December 31. 2016, has a balance that consists of:
Days outstanding
Amount
Estimated Uncollectible
0-60
$120,00
1%
61-120
90,000
2%
Over 120
100,000
6%
Total
$310,000
Activity during Fiscal year 2016, for Alpha Company consisted of:
July 15Alpha wrote of the Bravo Zulu Company account as not collectable for the amount of $7,000
Oct 20Alpha company recovered $4,000 from the Charlie Delta Company for settlement of their prior debt that had been written off during FY 2015.
Alpha Company`s December 31, 2015 allowance for uncollectible accounts was $2,200. Under the aging method, what amounts should Alpha Company report at December 31, 2016 for:
1.Allowance for Uncollectible Accounts
2.Bad Debt Expense
8.Alpha Company uses the perpetual inventory system and had the following inventory & sales activity for the month of May 2016:
Date
Activity
Quantity
Unit Price
5/1
Beginning Inventory
100
$10
5/5
Purchase
200
$11
5/10
Sales
200
$25
5/15
Purchase
300
$13
5/20
Sales
300
$35
5/25
Purchase
150
$15
Using the LIFO Method, determine the dollar values following for the month of May:
1, Ending Inventory
2.Goods Available for Sale
3. Sales
4. Cost of Goods Sold
5. Gross Profit
9. Alpha Company has the following items in its equipment account:
Asset &Date Purchased
Method of Depreciation
Cost
Salvage Value
1
Delivery Truck (4/30/15)
Units of Activity
$60,000
$11,000
2
Office Furniture (6/1/15/)
Straight line
$15,000
$500
3
Computer
Double Declining
$5,000
$700
The delivery truck is estimated to have a life cycle of 200,000 miles. It was driven for1. 16,500 miles in 2015 &24,600 miles in 2016
2.The Computer Furniture has a life expectancy of 7 years
3.The Computer has a life expectancy of 4 years
Round any per unit calculations to the nearest half penny. Round all annual depreciation expenses to the nearest dollar. Use this information to compute for Fiscal Year 2016 the following values:
1.Book Value of the Delivery Truck
2. Depreciation Expense- Truck
3.Book value of the office furniture
4.Depreciation Expense- Office Furniture
5.Book value of the Computer
6.Depreciation Expense- Computer
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