Determining Financial Statement Effects of Adjusting Entries (Deferred Accounts)
For each of the transactions in M4-4, indicate the amounts and direction of effects of the adjusting entry on the elements of the balance sheet and income statement. Using the following format, indicate + for increase, ˆ’ for decrease, and NE for noeffect.

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BALANCE SHEET INCOME STATEMENT Stockholders Net Income Assets Transaction Liabilities Equity Revenues Expenses a. b. C.