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.
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 had 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.