Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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,

image text in transcribedimage text in transcribed

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

DOD Financial Management The Army Faces Significant Challenges In Achieving Audit Readiness For Its Military Pay

Authors: Government Accountability Office

1st Edition

1492310921, 978-1492310921

More Books

Students also viewed these Accounting questions