Question: 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 middle column shows a blank space for each income statement effect of the eight
adjusting entriesathrough g(the balance sheet part of the entries is not shown here). Analyze the statements
and prepare the eight adjusting entries athrough gthat likely were recorded. Note:Answer for ahas
two entries (i) of the \(7,000 adjustment for Fees Earned, 30% (or \)2,100) has been earned but not billed,
and (ii) the other 70% (or \(4,900) has been earned by performing services that were paid for in advance.
ALEXISUnadjusted Adjustments Adjusted
Revenues
Fees earned . \)18,000 a. \(25,000
Commissions earned . 36,500 36,500
Total revenues 54,500 61,500
Expenses
Depreciation expense—Computers 0 b. 1,600
Depreciation expense—Office furniture . 0 c.1,850
Salaries expense 13,500 d. 15,750
Insurance expense . 0 e.1,400
Rent expense 3,800 3,800
Office supplies expense 0 f. 580
Advertising expense 2,500 2,500
Utilities expense . 1,245 g. 1,335
Total expenses . 21,045 28,815
Net income \)33,455 $32,685
