Exercise 3-5 Analyzing and preparing adjusting entries LO P1, P3 Following are two income statements for Alexds Co. for the year ended December 31. The left number column is prepared before any ajusting entries are recorded, and the right column includes the effects of adjusting entries. The company records cash receipts and payments related to uneamed and prepaid items 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) 42,500 ALEXIS CO. Income Statements For Year Ended December 31 Unadjusted Adjustments Adjusted Revenues Fees earned $ 24, a. $29,480 Commissions earned 42,50 Total revenues $ 66,500 71,900 Expenses Depreciation expense-Computers 1,350 Depreciation expense-Office furniture Salaries expense 12,500 14,705 Insurance expense Rent expense 4,500 4,500 Office supplies expense 432 Advertising expense 3,000 3,000 Utilities expense 1,250 1,313 Total expenses 21,250 28,045 Net income $ 45, 250 $43,855 1,575 jou 4 1,170 Analyze the statements and prepare the eight adjusting entries a through that likely were recorded. Nore. Answer for a has two entries 30% of the 55,400 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 View transaction list View journal entry worksheet 24,000 O Record the adjusting entry for accrued revenues. 2. Record the adjusting entry related to fees collected in advance. 3 Record depreciation on computers. Record depreciation on office furniture. 5 Record the adjusting entry related to salaries. 6 Record the adjusting entry related to insurance. Record the adjusting entry related to office supplies. Note journal entry has been entered