Analyzing and preparing adjusting, Accounting Basics

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Analyzing and preparing adjusting

Analyzing and preparing adjusting entries LO A1, P1, P3

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.

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Accounting Basics: Analyzing and preparing adjusting

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Accounting Basics: Analyzing and preparing adjusting

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