Exercise 3-12 (Algo) Analyzing and preparing adjusting entries LO P5 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. Income Statements For Year Ended December 31 Unadjusted Adjustments Adjusted Revenues Services revenue. Commissions earned Total revenues $ 24,000 $30,000 42,500 42,500 $ 66,500 72,500 Expenses Depreciation expense-Computers Depreciation expense-Office furniture 0 b. 1,500 0 c. 1,750 Salaries expense Insurance expense Rent expense office supplies expense Advertising expense) 12,500 d. 14,950 0 1,300 4,500 4,500 0 f. 480 3,000 3,000 Utilities expense Total expenses Net income 1,250 1,320 21,250 28,800 $ 45,250 $43,700 Analyze the statements and prepare the seven adjusting entries a through g that likely were recorded. Hint: The entry for a refers to revenue that have been earned but not yet billed. None of the entries involve cash.