For Each of the Following Transactions, Indicate the Direction of Effects

question 17

Essay

For each of the following transactions, indicate 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. Do not leave any blank spaces.
Transactions:
A. Wages of $5,800 have been earned, but not paid to employees at the end of the year.
B. Supplies in the amount of $2,000 were used during the year, which are currently recorded in the office supplies (inventory) account.
C. Interest has accrued on a note payable.

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Definitions:

Malfunctioned

Referred to when an item or system does not operate as intended or fails to perform its required function.

Temperature Change

The difference in temperature between two points in time or space, indicating a warming or cooling trend.

Average Run Length

A statistical measure in quality control indicating the expected number of items to be processed before a change or fault is detected.

Sample Size

The number of observations or data points collected in a sample, used for statistical analysis to make inferences about a larger population.