QUESTION 1:

Alpha Dog formed a corporation on 1/2/17 to provide construction services in the town of Elven, Rivendell, ME. The following is the 12/31 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

Revenue

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.

1. Equipment was purchased on June 1, it has an estimated life or 5 years with an estimated salvage value of $400,000. Alpha Dog used the double declining balance method for depreciation.

2.Supplies on hand at year end are $30,000.

3. On 1/1/2017 interest of $58,000 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 $35,000. Billings will be process the first week of January.

Use this information to compute the adjustments and then prepare the end of the fiscal year general journal closing entries (without explanation). Note: students are to only present the closing entries. This will require that the student work on the side to determine the adjustments that were made to the unadjusted trial balance before they will be able to prepare the closing entries.

ANSWER:

Date

Accounts

Debit

Credit

12/31/2016

*

*

*

12/31/2016

*

*

*

*

*

*

*

*

*

12/31/2016

*

*

*

QUESTION 1: Alpha Dog formed a corporation on 1/2/17 to provide construction services in the town of Elven, Rivendell, ME. The following is the 12/31 unadjusted Trial Balance: The following information is provided regarding end of the FY required adjusting entries. 1. Equipment was purchased on June 1, it has an estimated life or 5 years with an estimated salvage value of $400,000. Alpha Dog used the double declining balance method for depreciation. 2. Supplies on hand at year end are $30,000. 3. On 1/1/2017 interest of $58,000 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 $35,000. Billings will be process the first week of January. Use this information to compute the adjustments and then prepare the end of the fiscal year general journal closing entries (without explanation). Note: students are to only present the closing entries. This will require that the student work on the side to determine the adjustments that were made to the unadjusted trial balance before they will be able to prepare the closing entries. Do not present any calculations or other information in the answer sheet expect for the required closing entries. ANSWER: Date Accounts 12/31/2016 * * * 12/31/2016 * * * * * * * * * 12/31/2016 * * * Debit Credit