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 24^th, 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