For each of the transactions in M4-4, indicate the amounts and direction of effects of the adjusting entry on the elements of the statement of financial position and the statement of earnings. Using the following format, indicate + for increase, - for decrease, and N for no effect.

M 4-4

In each of the following transactions (a) through (c) for Romney's Marketing Company, use the three-step process illustrated in the chapter to record the adjusting entry at year-end December 31, 2018. The process includes (1) determining if revenue was earned or an expense incurred, (2) determining whether cash was received or paid in the past or will be received or paid in the future, and (3) computing the amount of the adjustment.

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Statement of Financial Position Statement of Earnings Shareholders' Equity Assets Net Earnings Transaction Liabilities Revenues Expenses a. b. C.