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loris [4]
3 years ago
13

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 Adjusted
Revenues
Fees earned $24,000 $30,600
Commissions earned 42,500 42,500
Total revenues 66,500 73,100
Expenses
Depreciation expense—Computers 0 1,650
Depreciation expense—Office furniture 0 1,925
Salaries expense 12,500 15,195
Insurance expense 0 1,430
Rent expense 4,500 4,500
Office supplies expense 0 528
Advertising expense 3,000 3,000
Utilities expense 1,250 1,327
Total expenses 21,250 29,555
Net income $ 45,250 $ 43,545
Analyze the statements and prepare the eight adjusting entries that likely were recorded. (Note: 30% of the $6,600 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.)


Journal entry worksheet

Dec 31 Record the adjusting entry for accrued revenues.
Dec 31 Record the adjusting entryrelated to fees collected in advance
dec 31 record depreciation on computers
dec 31 record deprectiation on furniture
dec 31 record the adjusting entry related to salaries
dec 31 record the adjusting entry related to insurance
dec 31 record the adjusting entry related to office supplies
dec 31 recrod the adjusting entry related to utilites
Business
2 answers:
Lisa [10]3 years ago
8 0

Answer:

General Journal

Dr Accounts receivable 1,980

Cr Fees earned 1,980

Dr Unearned fees 4,620

Cr Fees earned 4,620

Dr Depreciation expense—

Computers 1,650

Cr Accumulated depreciation

Computers 1,650

Dr Depreciation expense—Office furniture 1,925

Cr Accumulated depreciation—

Office furniture 1,925

Dr Salaries expense 3,195

Cr Salaries payable 3,195

Dr Insurance expense 1,430

Cr Prepaid insurance 1,430

Dr Office supplies expense 528

Cr Office supplies 528

Dr Utilities expense 77

Cr Utilities payable 77

EXPLANATION:

1. Account receivable and Fees earned

30% of $6,600 adjustment for Fees Earned has been earned but not billed,

30% of $6,600= $1,980

2. Unearned fees and Fees earned

the other 70% has been earned by performing services that were paid for in advance

70% of $ 6,600= $ 4,620

3. Depreciation expense—Computers and Accumulated depreciation Computers

$1,650

4. Depreciation expense Office furniture and Accumulated depreciation

Office furniture $1,925

5. Salaries expense and Salaries payable

$12,000-$15,195= $3,195

6. Insurance expense and Prepaid insurance $1,430

7. Office supplies expense and Office supplies $528

8. Utilities expense and Utilities payable

$1,250-$1,327=$77

ladessa [460]3 years ago
5 0

Explanation:

Adjusting entries of fees collected in advance:

   1.  Dr  unearned fee    6600

              Cr fees earned           6600

Depreciation of Computers:

 Dr Depreciation expense - computer 1650

                 Cr Accumulated depreciation   1650

Depreciation of Furniture:

 Dr Depreciation expense - office furniture 1925

                 Cr Accumulated depreciation            1925

Adjusting entries of salaries:

 Dr  Salary expense    2695

       Cr Salary payable        2695

Adjusting entries of Insurance:

 Dr Insurance expense       1430

         Cr prepaid insurance       1430.

Adjusting entries of office supplies:

Dr Office supplies expense 528

            Cr Office supplies   528

Adjusting entries of utilities:

 Dr Utilities expense  77

           Cr Utilities payable     77

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