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:

Equity Carve-out

A strategic corporate action where a company sells a percentage of the interest of a subsidiary to outside investors, thereby offering it publicly while retaining control.

Market Price

The current price at which an asset or service can be bought or sold.

Public Stockholders

Individuals and institutions that own shares of stock in a publicly traded company, making them partial owners.

Going Public

This involves a private company offering its shares to the public in a new stock issuance, allowing it to raise capital from public investors.