Unadjusted

Adjustments

Adjusted

Increased (Decreased)

Revenues

Fees earned

$                                   24,000.00

a.

$                                     28,800.00

$           4,800.00

Commissions earned

$                                   42,500.00

$                                     42,500.00

$                        -  

Total revenues

$                                   66,500.00

$                                     71,300.00

Expenses

Depreciation expense—Computers

$                                                  -  

b.

$                                        1,200.00

$           1,200.00

Depreciation expense—Office furniture

$                                                  -  

c.

$                                        1,400.00

$           1,400.00

Salaries expense

$                                   12,500.00

d.

$                                     14,460.00

$           1,960.00

Insurance expense

$                                                  -  

e.

$                                        1,040.00

$           1,040.00

Rent expense

$                                     4,500.00

$                                        4,500.00

$                        -  

Office supplies expense

$                                                  -  

f.

$                                           384.00

$               384.00

Advertising expense

$                                     3,000.00

$                                        3,000.00

$                        -  

Utilities expense

$                                     1,250.00

g.

$                                        1,306.00

$                 56.00

Total expenses

$                                   21,250.00

$                                     27,290.00

Net income

$                                   45,250.00

$                                     44,010.00

Transaction

General Journal

Debit

Credit

a1.

Accounts receivables

$               1,440.00

[4800 x 30%]

Fees earned

$                                        1,440.00

a2

Unearned Revenue

$                     3,360.00

[4800 x 70%]

Fees earned

$                                        3,360.00

b

Depreciation expense—Computers

$                     1,200.00

Accumulated Depreciation Computers

$                                        1,200.00

c

Depreciation expense—Office furniture

$                     1,400.00

Accumulated Depreciation Office Furniture

$                                        1,400.00

d

Salaries expenses

$                     1,960.00

Salaries Payable

$                                        1,960.00

e

Insurance expense

$                     1,040.00

Prepaid Insurance

$                                        1,040.00

f

Office supplies expense

$                        384.00

Office Supplies

$                                           384.00

g

Utilities expense

$                           56.00

Utilities Payable

$                                              56.00