Following are two income statements for Alexis Co. for the year ended December 31. The left number column is prepared  before adjusting entries are recorded, and the right column is prepared after adjusting entries. Analyze the statements and prepare the seven adjusting entries a through g that likely were recorded. Hint: The entry for a refers to fees that have been earned but not yet billed. None of the entries involve cash.

Transcribed Image Text:

Income Statements For Year Ended December 31 Unadjusted Adjustments Adjusted Revenues Fees earned. $18,000 $25,000 Commissions earned 36,500 36,500 Total revenues . 54,500 61,500 Expenses Depreciation expense-Computers 1,600 b. 1,850 Depreciation expense-Office furniture C. Salaries expense 13,500 d. 15,750 Insurance expense 1,400 e. Rent expense 3,800 3,800 Office supplies expense f. 580 2,500 Advertising expense 2,500 Utilities expense 1,245 1,335 g. Total expenses. 28,815 21,045 $33,455 $32,685 Net income