Following are two income statements for Alexis Co. for the year ended December 31. The...
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Accounting
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 expenseComputers | 0 | 1,800 | ||||
Depreciation expenseOffice furniture | 0 | 2,100 | ||||
Salaries expense | 12,500 | 15,440 | ||||
Insurance expense | 0 | 1,560 | ||||
Rent expense | 4,500 | 4,500 | ||||
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 | ||
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.
2) (b) Record depreciation on computers.
3) (C) Record depreciation on office furniture.
4) (d) Record the adjusting entry related to salaries
5) (e) Record the adjusting entry related to insurance.
6) (f) Record the adjusting entry related to office supplies.
7) (g) Record the adjusting entry related to utilities.
The options are the same for every table 1 through 5 for General Journal
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