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.
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).
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