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Exercise 3-12 (Algo) 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. a. Income Statements For Year Ended December 31 Unadjusted Adjustments Adjusted Revenues Services revenue $ 24,000 $31, 200 Commissions earned 42,500 42,500 Total revenues $ 66,500 73,700 Expenses Depreciation expense-Computers 0 b. 1,800 Depreciation expense-Office furniture 0 C. 2,100 Salaries expense 12,500 d. 15,440 Insurance expense 0 1,560 Rent expense 4,500 4,500 Office supplies expense 0 f. 576 Advertising expense 3,000 3,000 Utilities expense 1,250 g. 1,334 Total expenses 21,250 30,310 Net income $ 45, 250 $43,390 e. Analyze the statements and prepare the seven adjusting entries a through g that likely were recorded. Hint: The entry for a refers to revenue that have been earned but not yet billed. None of the entries involve cash. Journal entry worksheet Record depreciation on office furniture. Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet Record the adjusting entry related to office supplies. Note: Enter debits before credits. Event General Journal Debit Credit f Record entry Clear entry View general journal Journal entry worksheet

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