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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
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. Income Statements For Year Ended December 31 Unadjusted Adjustments Adjusted Revenues Total revenues Expenses Services revenue Commissions earned Depreciation expense-Computers $18,000 36,500 a. $ 25,000 36,500 $54,500 61,500 b. 1,600 Depreciation expense-Office furniture e c. 1,850 Salaries expense Insurance expense Rent expense Office supplies expense Advertising expense Utilities expense 13,500 d. 15,750 e e. 1,400 3,800 3,800 f. 580 2,500 2,500 2,245 E- 1,335 Total expenses 21,045 28,815 Net income $33,455 $32,685 Analyze the statements and prepare the seven adjusting entries a through g that likely were recorded. Hint: The entry for a refers to revenue that have been earned but not yet billed. None of the entries involve cash. View transaction list Journal entry worksheet 1 2 3 4 5 6 7 Record the adjusting entry for accrued revenues. Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journal
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