Reference no: EM132404002
Question
Alpha Dog formed a corporation on January 1, 2016 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 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
Revenues 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. Also assume that no monthly adjusting entries were done.
Instructions:
Prepare in journal form, all adjusting entries on 12/31/16 based on the additional information below. There may be more rows than needed so as to have spacing between each adjusting entry.
1. Equipment was purchased on January 1 for 2,400,000, 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. Compute the Depreciation expense on 12/31/16.
2. Supplies on hand at year end are $20,000.
3. The insurance policy is for 12 months and was purchased on March 1.
4. Services performed and were unrecorded were for $25,000.