Following are two income statements for Alexis Co. for the year ended December 31. The left number 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. The middle column shows a blank space for each income statement effect of the eight adjusting entries a through g (the balance sheet part of the entries is not shown here).
ALEXIS CO. Income Statements For Year Ended December 31 |
||||||||||
Unadjusted | Adjustments | Adjusted | ||||||||
Revenues | ||||||||||
Fees earned | $ | 24,000 | a. | $ | 30,000 | |||||
Commissions earned | 42,500 | 42,500 | ||||||||
Total revenues | $ | 66,500 | 72,500 | |||||||
Expenses | ||||||||||
Depreciation expense—Computers | 0 | b. | 1,500 | |||||||
Depreciation expense—Office furniture | 0 | c. | 1,750 | |||||||
Salaries expense | 12,500 | d. | 14,950 | |||||||
Insurance expense | 0 | e. | 1,300 | |||||||
Rent expense | 4,500 | 4,500 | ||||||||
Office supplies expense | 0 | f. | 480 | |||||||
Advertising expense | 3,000 | 3,000 | ||||||||
Utilities expense | 1,250 | g. | 1,320 | |||||||
Total expenses | 21,250 | 28,800 | ||||||||
Net income | $ | 45,250 | $ | 43,700 | ||||||
Analyze the statements and prepare the eight adjusting entries a
through g that likely were recorded. Note: Answer for a
has two entries 30% of (i) the $6,000 adjustment for Fees Earned
has been earned but not billed, and (ii) the other 70% has been
earned by performing services that were paid for in advance.
a1. Record the adjusting entry for accrued revenues
a2.Record the adjusting entry related to fees collected in
advance.
b.Record depreciation on computers.
c.Record depreciation on office furniture.
d.Record the adjusting entry related to salaries.
e.Record the adjusting entry related to insurance.
f.Record the adjusting entry related to office supplies.
g.Record the adjusting entry related to utilities.
find general journal, debit, credit
Adjusting entry :
Transaction | Account and explanation | debit | credit |
a1 | Account receivable (6000*30%) | 1800 | |
Fees earned | 1800 | ||
(To record revenue) | |||
a2 | Unearned revenue (6000*70%) | 4200 | |
Fees earned | 4200 | ||
(To record revenue) | |||
b | Depreciation expense -Computer | 1500 | |
Accumlated depreciation-computer | 1500 | ||
(To record depreciation) | |||
c | Depreciation expense-Office furniture | 1750 | |
Accumlated depreciation-office furniture | 1750 | ||
(To record depreciation) | |||
d | Salary expense | 2450 | |
Salary payable | 2450 | ||
(To record accured salary) | |||
e | Insurance expense | 1300 | |
Prepaid insurance | 1300 | ||
(To record insurance expense) | |||
f | Office supplies expense | 480 | |
Office supplies | 480 | ||
(To record supplies adjusted) | |||
g | Utilities expense | 70 | |
Utilities payable | 70 | ||
(To record utilities expense) |
Following are two income statements for Alexis Co. for the year ended December 31. The left...
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. ALEXIS CO. Income Statements For Year Ended December 31 Unadjusted Adjusted Revenues Fees earned $ 24,000 $ 30,000 Commissions earned 42,500 42,500 Total revenues $ 66,500 72,500 Expenses Depreciation...
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...
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 StatementsFor Year Ended December 31UnadjustedAdjustedRevenuesFees earned$24,000$30,000Commissions earned42,50042,500Total revenues$66,50072,500ExpensesDepreciation expense—Computers01,500Depreciation expense—Office furniture01,750Salaries expense12,50014,950Insurance expense01,300Rent expense4,5004,500Office supplies expense0480Advertising expense3,0003,000Utilities expense1,2501,320Total expenses21,25028,800Net income$45,250$43,700Analyze the statements and prepare the seven adjusting entries that...
Following are two income statements for Alexis Co. for the year ended December 31. The left number 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 Adjustments Adjusted Revenues Fees earned $ 24,000 a. $ 29,400 Commissions earned 42,500 42,500 Total revenues $...
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 $24,000 42,500 $66,500 $29,400 42,500 71,900 Revenues Fees earned Commissions earned Total revenues Expenses Depreciation expense-Computers Depreciation expense-office furniture Salaries...
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. Analyze the statements and prepare the seven adjusting entries that likely were recorded. Hint: Entry for arefers to fees that have been earned but not yet billed. None of...
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...
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. ALEXIS CO. Income Statements For Year Ended December 31 Unadjusted Adjusted $24,000 42, 500 $66,500 $30,000 42,500 72,500 Revenues Fees earned Commissions earned Total revenues Expenses Depreciation expense-Computers Depreciation...
Following are two income statements for Alexis Co. for the year ended December 31. The left number 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. Adjusted $ 25,000 36,500 61,500 ALEXIS CO. Income Statements For Year Ended December 31 Unadjusted Adjustments Revenues Fees earned $18, eee Commissions earned 36,580 Total revenues 54,...
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. ALEXIS CO. Income Statements For Year Ended December 31 Unadjusted Adjusted Revenues Fees earned $18,000 $25,000 Commissions earned 36,500 36,500 Total revenues $54,500 61,500 Expenses Depreciation expense-Computers 1,600 Depreciation...