Alpha Dog Company

Alpha Dog Company

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1.    The following are selected accounts for the Alpha Dog Company after all Fiscal Year December 31, 2016, adjusting entries & closing entries have been posted. All balances are normal.

Account    Amount
Common Stock, $5 par    $160,000
Treasury Stock, at cost $10 per share    25,000
Dividends Payable    7,000
Paid in Capital in excess of par, Common Stock    30,000
Paid in Capital in excess of par, Preferred Stock    4,500
Retained Earnings    150,000
Bonds Payable    85,000
Preferred Stock, $100 par, 5% cumulative    45,000
On December 31, 2016, Common Stock was authorized 50,000 shares and Preferred Stock was authorized 5,000 shares. Prepare only the Stockholder’s Equity section of the Classified Balance Sheet for the year end. Be sure to use a good format, dollar signs and single underlines were required. There are a few extra lines in the formatted input answer form to allow for acceptable balance sheet format variations.

2.    On July 1, 2016, Alpha Company purchased from Zulu Company, a truck for $34,000. Alpha signed a Note Payable due in one year for $36,040. Alpha uses accrual basis for accounting and its fiscal year ends on December 31. Use this information to prepare the compound General Journal entry (without explanation) for the payment of the note on June 30, 2017. If no entry is required then write “No Entry Required.”

Alpha Dog Company

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3.    On July 1, 2016, Alpha Company borrowed $125,000 from Mega Bank. Alpha signed a 5% note, due in one year. Alpha uses accrual basis for accounting and its fiscal year ends on December 31. Use this information to prepare the compound General Journal entry (without explanation) for the payment of the note on June 30, 2017. If no entry is required then write “No Entry Required.”

4.    On January 2, 2016, Alpha Corporation’s initial capital stock transaction consisted of an issuance of 2,500 shares of $8 par value common stock, for $50 per share. On June 30, 2017 another 10,000 shares were authorized to be issued. Use this information to determine for the June 30, 2017 dollar value balances for:
1. Common Stock
2. Additional Paid in Capital in excess of par Common Stock

5.    Alpha Company records all sales at the register with amounts that include 7% sales tax.  During November 2016, total sales at the register were recorded as $695,500. Use this information to determine what amount of sales tax liability that Alpha Company should record for an end of the month adjusting entry.

6.    Alpha Dog formed a corporation on January 2, 2016 to provide construction services in the town of Elven, Rivendell, ME. The following is the December 31th Unadjusted Trial Balance.

Alpha Dog Company

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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.
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. 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). Note: students are to only present the closing entries. This will require that the student work on the side to determine the adjustments that were made to the unadjusted trial balance before they will be able to prepare the closing entries. Do not present any calculations or other information in the answer sheet expect for the required closing entries.

7.    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:
1. 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
2. The following information was recorded in Alpha’s cash receipts ledger and have not yet been recorded in the bank statements:

Alpha Dog Company

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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 then write “No Entry Required.”

8.    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 months, 6% note.
Mar. 21  Loaned Delta Company $22,800 cash and accepted a 90 days, 9% note.
June 19  Received payment from Delta Company.
July 1     Received payment from Bravo Company.
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 Dog Company

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9.    Alpha Company prepares quarterly adjusting entries. On August 31, 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 value of the note. Use this information to prepare the general journal entry for the August 31 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.

10.    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:
1. 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
2. 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, in good form, the July 31, 2017 Bank Reconciliation for Alpha Company.

Alpha Dog Company

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11.    On August 2, 2016, Alpha Company made a lump sum purchase of land, building, and equipment. The following were the appraised values of each element:

PP&E Element    Amount
Land    $15,000
Building    60,000
Equipment    25,000
Alpha signed a 3 years, 5%, note in the amount of $125,000 for the lump sum purchase. Use this information to prepare the General Journal entry (without explanation) for August 2. If no entry is required then write “No Entry Required.”

12.    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    $200,000    1%
61 – 120    90,000    2%
Over 120    100,000    6%
Total    $390,000
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 $8,000.
Oct. 20      Alpha company recovered $5,000 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 $2,500. Under the aging method, what amounts should Alpha Company report at December 31, 2016 for:
1. Allowance for Uncollectible Accounts
2. Bad Debt Expense

Alpha Dog Company

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13.    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

14.    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)    Unit of Activity    $60,000    $11,000
2.    Office Furniture (6/1/15)    Straight Line    $15,000    $300
3.    Computer (4/1/15)    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 & 25,000 miles in 2017
2. The Office 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 2017 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

Alpha Dog Company

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By admin in Essays on March 4, 2018