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Salaries expense 1. Exercise 3-7 Analyzing and preparing adjusting entries LO P5 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 $31,200 Commissions earned 42,500 42,500 Total revenues $ 66,500 73,700 Expenses Depreciation expense-Computers 0 1,800 Depreciation expense-Office furniture 0 12,500 Insurance expense 0 Rent expense Office supplies expense 0 576 Advertising expense 3,000 3,000 Utilities expense 1,250 1,334 Total expenses 21,250 30,310 Net income $ 45, 250 $ 43, 390 2,100 15,440 4,500 4,500 Analyze the statements and prepare the seven adjusting entries that likely were recorded. Hint: Entry for a refers to fees that have been earned but not yet billed. None of the entries involve cash. View transaction list Journal entry worksheet Record the adjusting entry for accrued revenues. Note: Enter debits before credits. Event General Journal Debit Credit a Record entry Clear entry View general journal