An inexperienced bookkeeper prepared the income statement shown below in columns 1 and 2, but he forgot to adjust the accounts before its preparation. However, the oversight was discovered, and the statement in columns 3 and 4 was prepared. Analyze the statements and prepare the adjusting journal entries that were made between the preparation of the two statements. Assume that one third of the additional property management fees resulted from recognizing accrued fees and two thirds resulted from previously recorded unearned fees that were earned by the date of the statements.

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Revenues: MASON REALTY Income Statement For Year Ended December 31, 1990 Commissions earned Property management fees. Total revenues Operating expenses: Salaries expense Rent expense. Advertising expense. Gas, oil, and repairs expense. Office supplies expense Insurance expense Depreciation expense, office equipment Depreciation expense, automobile. Total operating expenses. Net income.. Prepared without Adjustments Prepared after Adjustments $82,125 $82,125 4,500 5,625 $86,625 $87,750 $17,250 $18,000 13,500 13,500 3,750 3,750 750 750 150 1,350 1,500 3,000 35,250 42,000 $51,375 $45,750