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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.

Income Statements For Year Ended December 31
Unadjusted Adjusted
Revenues
Fees earned $ 24,000 $ 28,800
Commissions earned 42,500 42,500
Total revenues $ 66,500 71,300
Expenses
Depreciation expenseComputers 0 1,200
Depreciation expenseOffice furniture 0 1,400
Salaries expense 12,500 14,460
Insurance expense 0 1,040
Rent expense 4,500 4,500
Office supplies expense 0 384
Advertising expense 3,000 3,000
Utilities expense 1,250 1,306
Total expenses 21,250 27,290
Net income $ 45,250 $ 44,010

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