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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,
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. ALEXIS CO. Income Statements For Year Ended December 31 Unadjusted Adjusted $18,000 36,500 $54,500 $ 25,000 36,500 61,500 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 13,500 3,800 0 2,500 1,245 21,045 $33,455 1,600 1,850 15,750 1,400 3,800 580 2,500 1,335 28,815 $ 32,685 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 View journal entry worksheet X Record the adjusting entry for accrued revenues. 2 Record depreciation on computers. 3 Record depreciation on office furniture. 4 Record the adjusting entry related to salaries. 5 Record the adjusting entry related to insurance. 6 Record the adjusting entry related to office supplies. 7 Record the adjusting entry related to utilities
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