Alpha Dog formed a corporation on January 2, 201

1, 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 31 the Unadjusted trial balance.
Alpha Dog Corporation
Unadjusted Trial Balance
12/31/16
Account 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
revenues 1,642,000
Wages expense 497,000
Fuel expense 62,000
Rent expense 180,000
interest expense 60,000
totals $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 valve 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 of $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 process the first week of January.

2. Alpha Company had the following banking information from its bank statement dated July 31, 2017
item Amount
Cash balance per bank (7/3/17) $3,350
Bank Service Charges 75
Collection of Note Receivable from Mr. Yankee including the interest of $145 3,145
Customer (Mr. Welcher) returned cheque NSF 225

The following additional information was determined from a review of the cash payments & receipts and the cheque register for Alpha Company:

• The following cheques had not cleared the bank as paid:
Date Ck Accounts Payable Amount
5/25/17 1005 Bravo Office Supply Store $250
7/15/17 1025 Zulu Electric Company 1,900
7/30/17 1030 Bravo Office Supply Store 250

• The following information was recorded in Alpha`s cash receipts ledger and have not yet been recorded in the bank statements:
Date Item Amount
5/25/17 Store Cash Sales $200
7/31/17 Store Cash Sales 200
7/31/17 Cheques from Store Sales 5,500
7/31/17 Cash Balance per General Ledger (7/31/17) 4,005

Prepare, the compound general journal entry (without explanation) needed to record the adjustments required to reconcile the July 31st cash book balance to the adjusted bank balance. If no entry is required them write “No Entry Required”

• Alpha Company had the following events during FY 2017:
Date: Event
Mar. 1 Accepted Bravo Company`s 4 month, 9% note, as settlement of an outstanding $18,000 accounts receivable for goods sold in the prior year.

Mar 15 Sold, $27,200 of equipment (from merchandise inventory) to Charlie Company and accepted a 9 month, 6% note

Mar 21 Loaned Delta Company $27,800 cash and accepted a 90 days, 9% note.

June 19 Received payment from Delta Company

July 1 Received payment from Bravo

Dec 16 Received payment from Charlie Company

Alpha Company uses the periodic system for inventory sales and prepares quarterly adjusting entries. Use this information to prepare the compound general journal entries (without explanation) for all events related to the notes. Students may add the company names after the notes receivable account names to further identify the various subsidiary note transactions.

Calculations for any interest must be done on a standard 360-day year for notes where the term is set in days. Use whole months (or fractions thereof) for notes with term limits set in months or years.

• Alpha Company prepares quarterly adjusting entries. On November 1, 2017. Alpha Company purchased equipment with a sticker price of $8,515 and signed a note due in 9 months for $10,000 that included interest in the valve of the note. Use this information to prepare the general journal entry for the November 1 equipment purchase. Prepare any additional general journal adjusting entries for Fiscal Years 2017 $ 2018. Additionally, prepare the general journal entry to record the payment of the note when due in 2018.

• Alpha Company had the following banking information from its bank statement dated July 31, 2017:
Item Amount
Cash Balance per bank(7/3/17) $3,350
Bank Service Charges 75
Collection of Note Receivable from Mr Yankee including the interest of $145 3,145
Customer (Mr. Welcher) returned cheque NSF 225

The following additional information was determined from a review of the cash payments & receipts and the cheque register for Alpha Company:

• The following cheques had not cleared the bank as paid:
Date Ck # Account Payable Amount
5/25/17 1005 Bravo Office Supply Store $250
7/15/17 1025 Zulu Electric Company 1900
7/30/17 1030 Bravo Office Supply Store 250

• The following information was recorded in Alpha`s cash receipts ledger and have not yet been recorded in the bank statements:

.
Date item Amount
5/25/17 Store Cash Sale $200
7/31/17 Store Cash Sales 200
7/31/17 Cheques from Store Sales 5,500
7/31/17 Cash balance per General Ledger (7/31/17) 4,005

Prepare, in good form, the July 31, 2017 Bank Reconciliation for Alpha Company.

• During the fourth quarter of 2017, Alpha Company acquired the following trading securities:

Date Company # of Shares Price per Share
10/15 Yankee Company 1,000 $50
10/25 X-ray Company 1,000 35
10/31 Zulu Company 1,000 26

On November 10th, Alpha Company sold the X-ray Company stock for $30 per share. On December 24th, Zulu Company paid dividends of $0.25 per share. The following were the year-end market values;

Company FMV per Share
Yankee Company $55
X-ray Company 20
Zulu Company 15

What the total dollar values that Alpha Company should record for the following: (Enter whole dollars only, for loss amounts enter the $ & value inside of the brackets.)

• Realized Gain/Loss during 2017
• Unrealized Gain / Loss on Trading Securities for 2017
• Dividend Income

7. Alpha Company uses aging of Accounts Receivable to estimate uncollectible. The unadjusted Trial balance amount of accounts receivable on December 31. 2016, has a balance that consists of:
Days outstanding Amount Estimated Uncollectible
0-60 $300,00 1%
61-120 90,000 2%
Over 120 100,000 6%
Total $490,000

Activity during Fiscal year 2016, for Alpha Company consisted of:

July 15 Alpha wrote of the Bravo Zulu Company account as not collectable for the amount of $8,500

Oct 20 Alpha company recovered $5,500 from the Charlie Delta Company for settlement of their prior debt that had been written off during FY 2015.

Alpha Company`s December 31, 2015 allowance for uncollectible accounts was $2,700. Under the aging method, what amounts should Alpha Company report at December 31, 2016 for:

1. Allowance for Uncollectible Accounts
2. Bad Debt Expense

8. Alpha Company uses the perpetual inventory system and had the following inventory & sales activity for the month of May 2016:

Date Activity Quantity Unit Price
5/1 Beginning Inventory 100 $10
5/5 Purchase 200 $11
5/10 Sales 200 $25
5/15 Purchase 300 $13
5/20 Sales 300 $35
5/25 Purchase 150 $15

Using the LIFO Method, determine the dollar values following for the month of May:

1, Ending Inventory
2. Goods Available for Sale
3. Sales
4. Cost of Goods Sold
5. Gross Profit

9. Alpha Company has the following items in its equipment account:

Asset &Date Purchased Method of Depreciation Cost Salvage Value
1 Delivery Truck (4/30/15) Units of Activity $60,000 $11,000
2 Office Furniture (6/1/15/) Straight line $15,000 $500
3 Computer Double Declining $5,000 $700

The delivery truck is estimated to have a life cycle of 200,000 miles. It was driven for 1. 16,500 miles in 2015 &24,600 miles in 2016
2. The Computer Furniture has a life expectancy of 7 years
3. The Computer has a life expectancy of 4 years

Round any per unit calculations to the nearest half penny. Round all annual depreciation expenses to the nearest dollar. Use this information to compute for Fiscal Year 2016 the following values:

1. Book Value of the Delivery Truck
2. Depreciation Expense- Truck
3. Book value of the office furniture
4. Depreciation Expense- Office Furniture
5. Book value of the Computer
6. Depreciation Expense- Computer