Analyze the statements and prepare the seven adjusting entries a through g that likely were recorded. Note: Entry for a refers to fees that have been earned but not yet billed.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Exercise 3-5 Analyzing and preparing adjusting entries LO P1, P3

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.

 

ALEXIS CO.
Income Statements
For Year Ended December 31
  Unadjusted   Adjustments   Adjusted
Revenues                    
Fees earned $ 24,000       a.     $ 30,000
Commissions earned   42,500               42,500
Total revenues $ 66,500               72,500
Expenses                    
Depreciation expense—Computers   0       b.       1,500
Depreciation expense—Office furniture   0       c.       1,750
Salaries expense   12,500       d.       14,950
Insurance expense   0       e.       1,300
Rent expense   4,500               4,500
Office supplies expense   0       f.       480
Advertising expense   3,000               3,000
Utilities expense   1,250       g.       1,320
Total expenses   21,250               28,800
Net income $ 45,250             $ 43,700
 

  

Analyze the statements and prepare the seven adjusting entries a through g that likely were recorded. Note: Entry for a refers to fees that have been earned but not yet billed.
  

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