Exercise 3-6 Analyzing and preparing adjusting entries LO A1, P3 Following are two income statements for Alexis Co. for the year ended December 31. The left 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 items in balance sheet accounts. ALEXIS CO. Income Statements For Year Ended December 31 Unadjusted Adjusted Revenues Fees earned Commissions earned $18,000 $ 25,000 36,500 36,500 Total revenues $54,500 61,500 Expenses 0 1,800 0 1,850 13,500 15,750 0 1,400 3,800 3,800 580 2,500 2,500 1,245 1,335 Depreciation expense Computers Salaries expense Insurance expense Rent expense Office supplies expense Advertising expense Utiities expense 21,045 28,815 $33,455 $ 32,685 Total expenses Net incorme Analyze the statements and prepare the eight adjusting entries that likely were recorded. (Note30% of tha 7,000 adjustment for Fees Earned has been earned but not billed, and the other 70% has been earned by performing services that were paid for in advance.)