Lexi Corporation adjusts its accounts only at year-end. Prior to making their year-end adjustments, Lexi had a Net Income of $65,000. The following information is available as a source for preparing the adjusting entries at December 31, 2010:

1. Lexi purchased computer equipment two years ago for $15,000. The equipment has

an estimated useful life of five years and an estimated salvage value of $500.

2. The Office Supply account had a balance of $3,600 on January 1, 2010. During

2010, Lexi added $17,600 to the account for purchases of office supplies during the

year. A count of supplies on had at the end of December 2010 indicated a balance

of $1,850.

3. On August 1, 2010, Lexi received $24,000 from a customer paid in advance and

credited to Unearned Revenue. The revenue will be earned evenly from Lexi over a

six month period beginning August 1.

4. The tax rate for the income is 30%. No income taxes have been recorded as of year-

end. (Remember, net income before these adjustments was $65,000.)

For each of the above numbered items, prepare the necessary adjusting journal entry

in good form. For any item requiring a computation, show your computation under

the entry. If no adjusting entry is required, explain why.

Example: 0 If a company accrued its rent expense of $2,000 at year-end, then they would make the following AJE and show effects:

Rent Expense +E, -SE 2,000

Rent Expense Payable +L 2,000