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The unadjusted amount needs to be found.. Following are two income statements for Alexis Co. for the year ended December 31. The left number column
The unadjusted amount needs to be found..
Following are two income statements for Alexis Co. for the year ended December 31. The left number column is prepared before any adjusting entries are recorded, and the right column includes the effects of adjusting entries. The company records cash receipts and payments related to unearned and prepaid items in balance sheet accounts. The middle column shows a blank space for each income statement effect of the eight adjusting entries a through g (the balance sheet part of the entries is not shown here) ALEXIS CO. Income Statements For Year Ended December 31 Unadjusted Adjustments Adjusted Revenues Fees earned $24.ee $30,00 Commissions earned 42.589 42,560 Total revenues $66,500 72,500 Expenses Depreciation expense-Computers 1. See Depreciation expense-Office furniture 1.750 Salaries expense 12,5ee 14,950 Insurance expense 1,300 Rent expense 4,500 4,500 Office supplies expense Advertising expense 3,000 3.000 Utilities expense 1,250 1,320 Total expenses 21,250 28,800 Net Income 545.250 $43,700 Analyze the statements and prepare the eight adjusting entries a through g that likely were recorded. Note: Answer for a has two entries 30% of) the $6.000 adjustment for Fees Earned has been earned but not billed, and (ii) the other 70% has been earned by performing services that were paid for in advance. Journal entry worksheet Step by Step Solution
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