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 31th Unadjusted Trial Balance.

Alpha Dog Corporation
Unadjusted Trial Balance
12/31/16
Accounts	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
Revenue		1,642,000
Wages Expense	497,000
Fuel Expense	62,000
Rent Expense	180,000
Interest Expense	60,000	_________
Total	$4,257,000	$4,257,000

The following information is provided regarding end of the FY required adjusting entries.

Equipment was purchased on March 1, it 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.

Supplies on hand at year end are $20,000.

On 1/1/2017 interest on $57,000 and a principle payment of $20,000 must be made to the bank.

The insurance policy is for 12 months and was purchased on March 1.

Unbilled services that have been provided customers at year end is $25,000.Billings will be processed 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 except for the required closing entries.

ANSWER:

General Journal:

Date	Accounts	Debit	Credit
12/31/16
12/31/16
12/31/16