Question

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			$	29,400
Commissions earned		42,500				42,500
Total revenues	$	66,500				71,900
Expenses
Depreciation expense—Computers		0				1,350
Depreciation expense—Office furniture		0				1,575
Salaries expense		12,500				14,705
Insurance expense		0				1,170
Rent expense		4,500				4,500
Office supplies expense		0				432
Advertising expense		3,000				3,000
Utilities expense		1,250				1,313
Total expenses		21,250				28,045
Net income	$	45,250			$	43,855

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.

1. Record the adjusting entry for accrued revenues.

2.Record depreciation on computers.

3.Record depreciation on office furniture.

4. record the adjusting entry related to salaries.

5.Record the adjusting entry related to insurance.

6.Record the adjusting entry related to office supplies.

7.Record the adjusting entry related to utilities.

Answer 1

B2 X for no. - ДА В с E F G no. I date account titles and explanation debit credit 1 31-Dec $ 5,400 Accounts Receivable Fees earned (to record accrued revenues) $ 5,400 2 $ 1,350 31-Dec Depreciation expense Depreciation expense-Computers Accumulated depreciation-Computers (to record depreciation on computers) $ 1,350 3 3 1-Dec $ 1,575 Depreciation expense-Office furniture Accumulated depreciation-Office furniture (to record depreciation on office furniture) $ 1,575 4 31-Dec $ 2,205 Salaries expense Salaries payable (to record accrued salaries) $ 2,205 5 31-Dec $ 1,170 Insurance expense Prepaid insurance (to record insurance expense) $ 1,170 6 $ 432 31-Dec Office supplies expense Office supplies (to record office supplies expense) $ 432 7 31-Dec S 63 Utilities expense Utilities payable (to record utilities expense) $ 63

for formulas and calculations, refer to the image below -

B2 - x fc no. А в с E F G no.date account titles and explanation debit credit 1 =29400-24000 43830 Accounts Receivable Fees earned (to record accrued revenues) =E4 2 =1350-0 43830 Depreciation expense-Computers Accumulated depreciation-Computers (to record depreciation on computers) EES =1575-0 Depreciation expense-Office furniture Accumulated depreciation Office furniture (to record depreciation on office furniture) 1=E12 4 =14705-12500 43830 Salaries expense Salaries payable to record accrued salaries) =E16 5 =1170-0 43830 Insurance expense Prepaid insurance (to record insurance expense) =E20 6 =432-0 43830 Office supplies expense Office supplies (to record office supplies expense) 1=E24 7 =1313-1250 43830 Utilities expense Utilities payable (to record utilities expense) =E28

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