Reference no: EM131745053

Question - 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:

Aloha 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
Wares 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).