Exercise 3-5 Analyzing and preparing adjusting entries LO P1, P3 Following are two income statements for Alexis Co. for the year ended December 31. The left number column is prepared before any adjusting entries are recorded, and the right column includes the effects of adjusting entries. The company records cash receipts and payments related to unearned and prepaid ftems in balance sheet accounts. The middle column shows a blank space for each income statement effect of the eight adjusting entries a through g (the balance sheet part of the entries is not shown here) ALEXIS CO Income Statements For Year Ended December 31 Unadjusted Adjustments Adjusted Revenues 24,000 42,500 66,500 528,800 42.500 1,300 Fees earned Commissions earned Total revenues es Expenses Depreclation expense-Computers Depreciation expense-Office furniture Salarles expense Insurance expense Rent expense Office supplies expense 12,500 4,500 ,000 1,200 1,400 14,460 1,040 4, 500 384 3,000 1.306 Advertising expense tilities expense Total expenses 1,250 Net Income 45,250 44,010 Exercise 3-5 Analyzing and preparing adjusting entries LO P1, P3 Following are two income statements for Alexis Co. for the year ended December 31. The left number column is prepared before any adjusting entries are recorded, and the right column includes the effects of adjusting entries. The company records cash receipts and payments related to unearned and prepaid ftems in balance sheet accounts. The middle column shows a blank space for each income statement effect of the eight adjusting entries a through g (the balance sheet part of the entries is not shown here) ALEXIS CO Income Statements For Year Ended December 31 Unadjusted Adjustments Adjusted Revenues 24,000 42,500 66,500 528,800 42.500 1,300 Fees earned Commissions earned Total revenues es Expenses Depreclation expense-Computers Depreciation expense-Office furniture Salarles expense Insurance expense Rent expense Office supplies expense 12,500 4,500 ,000 1,200 1,400 14,460 1,040 4, 500 384 3,000 1.306 Advertising expense tilities expense Total expenses 1,250 Net Income 45,250 44,010