7 Exercise 3-7 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. ints Income Statements For Year Ended December 31 Unadjusted Adjusted eBook $ 24, eee 42,500 $66,500 $30,000 42,500 72,500 Hint 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, see Ask 4,500 1,500 1,750 14,95 1,300 4,500 480 3, see 1,320 28,800 $43,700 References 3, eee 1,250 21,250 $ 45, 250 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. View transaction list Journal entry worksheet Record the adjusting entry for accrued revenues. Note: Enter debits before credits. Event General Journal Debit Credit a Record entry Clear entry View general journal