Chapter 4, Problem 4.10E

Determining Financial Statement Effects of Seven Typical Adjusting Entries

Refer to E4-8.

  Required:

For each of the transactions in E4-8, indicate the amount and the direction of effects of the adjusting entry on the elements of the balance sheet and income statement. Using the following format, indicate + for increase, − for decrease, and NE for no effect.

Transaction	BALANCE SHEET			INCOME STATEMENT
	Assets	Liabilities	Stockholders’ Equity	Revenues	Expenses	Net Income
a.
b.
c.
(etc.)