Rent Expense 180,000 Interest Expense 60,000 Totals 4.024.000$4.024.000 The foll
ID: 2599783 • Letter: R
Question
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 had at year end are $30,000. 3.0n 1/1/2017 interest of $58,000 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 5. Unbilled services that have been provided customers at year end is $35,000 Billings will be process the first week of compute the adjustments and then prepare the end of the fiscal year general journal closing entries without explanation). Note: determine the students are to only present the closing entries. This will require that the student work on the side to adjustments that were made to the unadjusted trial balance before they will be able to prepare the closing entries. not present any calculations or other information in the answer sheet expect for the required closing entries. 5 6 8 9
Explanation / Answer
Adjustment computation and adjustment journal entries :
(being equipment's depreciation booked on double declining method = 2400000 * (20% * 2) = $960000
Serial no. Date Accounts Titles and explanation Debit $ Credit $ 1 Dec 31 16 Depreciation Expense - Equipment 960000 Acc. Depreciation - Equipment 960000(being equipment's depreciation booked on double declining method = 2400000 * (20% * 2) = $960000
2 Dec 31 16 Supplies Expense 55000 Supplies 55000 (being supplies expense booked 85000 - 30000) 3 Dec 31 16 Interest Expense 58000 Interest Payable 58000 (being interest expense booked and made payable) Principle payment on 1/1//17 - NO ENTRY 4 Dec 31 16 Insurance Expense 30000 Prepaid Insurance 30000 (being 10 months insurance expense booked - 36000 * 10 / 12 = 30000 ) 5 Dec 31 16 Unbilled Services 35000 Service Revenues 35000 (being unbilled revenue booked)