1 Exercise 3-7 Analyzing and preparing adjusting entries LO P5 10 points 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. The company records cash receipts and payments related to unearned and prepaid items in balance sheet accounts. eBook Income Statements For Year Ended December 31 Hint Unadjusted Adjusted Print $24,000 42,500 $66,500 $28,800 42,500 71,300 References Revenues Fees earned Commissions earned Total revenues Expenses Depreciation expense-Computers Depreciation expense-Office furniture Salaries expense Insurance expense Rent expense Office supplies expense Advertising expense Utilities expense Total expenses Net income 12,500 4,500 0 3,000 1,250 21,250 $45, 250 1,200 1,400 14,460 1,040 4,500 384 3,000 1,306 27,290 $44,010 Analyze the statements and prepare the seven adjusting entries that likely were recorded. Hint: Entry for a refers to fees that have been earned but not yet billed. None of the entries involve cash. Journal entry worksheet Record the adjusting entry for accrued revenues. Note: Enter debits before credits. General Journal Debit Credit Event a Record entry Clear entry View general journal View transaction list X 1 Record the adjusting entry for accrued revenues. 2 Record depreciation on computers. Record depreciation on office furniture. 4 Record the adjusting entry related to salaries. 5 Record the adjusting entry related to insurance. 6 Record the adjusting entry related to office supplies. 7 Record the adjusting entry related to utilities. Note : = journal entry has been entered Record entry Clear entry V