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 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).

ALEXIS CO.

Income Statements

For Year Ended December 31

Unadjusted Adjustments Adjusted

Revenues

Fees earned $ 18,000 a. $ 25,000

Commissions earned 36,500 36,500

Total revenues $ 54,500 61,500

Expenses

Depreciation expenseComputers 0 b. 1,600

Depreciation expenseOffice furniture 0 c. 1,850

Salaries expense 13,500 d. 15,750

Insurance expense 0 e. 1,400

Rent expense 3,800 3,800

Office supplies expense 0 f. 580

Advertising expense 2,500 2,500

Utilities expense 1,245 g. 1,335

Total expenses 21,045 28,815

Net income $ 33,455 $ 32,685

Analyze the statements and prepare the eight adjusting entries a through g that likely were recorded. Note: Answer for a has two entries (i) the $7,000 adjustment for Fees Earned, 30% (or $2,100) has been earned but not billed, and (ii) the other 70% (or $4,900) has been earned by performing services that were paid for in advance.

View transaction list Journal entry worksheet 2 3 5 6 7 Record the adjusting entry for accrued revenues. Note: Enter debits before credits. Transaction General Journal Debit Credit a1 Record entry Clear entry