Question

Check my wor Following are two income statements for Alexis Co. for the year ended December 31. The left column is prepared before any adjusting entries are recorded, and the right column includes the effects of adjusting entries. The company records cash receipts and payments related to unearned and prepaid items in balance sheet accounts ALEXIS co Income Statements For Year Ended December 31 Unadjusted Adjust Fees earned Commissions earned Total revenues $24,000 $31,200 42,500 42,500 $66,500 73,700 iation e 0 1,800 2,100 12,50015,440 0 1,560 4,500 576 3,000 1,334 21.250 30-310 $45,250 $43,390 Depreciation expense-office furniture Salaries 4,500 Rent expense office supplies expense 3,000 1,250 sing Utilities expense Total expenses Net income Analyze the statements and prepare the eight adjusting entries that likely were recorded. (Note: 30% of the $7200 adjustment for Fees Earned has been earned but not billed, and the other 70% has been earned by performing services that were paid for in advance.) ist Prey7 of 8 Next >

Answer 1

Ans.	Adjusting Entries
	Date	Accounts and Titles				Dr.($)	Cr.($)
	1)	Accounts Receivable				2,160
		To Fees Earned					2,160
		(Being 30% of $7200 earned but not billed)
	2)	Cash				5,040
		To Unearned Fees					5,040
		(Being 70% of $7200 received for services and paid in advance)
	3)	Depreciation expense-Computers				1,800
		To Accumulated Depreciation-Computers					1,800
		(Being Depreciation on computers)
	4)	Depreciation expense-Office Furniture				2,100
		To Accumulated Depreciation-Office Furn.					2,100
		(Being Depreciation on Office furnitures)
	5)	Insurance Expense				1,560
		To Insurance payable					1,560
		(Being insurance amount outstanding)
	6)	Office supplies expense				576
		To Supplies					576
		(Being Office supplies used)
	7)	Salaries Expense				2,940
		To Salaries Payable					2,940
		(Being Outstanding salaries on account)
	8)	utilities Expense				84
		To Utilities					84
		(Being Uitilities used)