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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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