Note 1: On April 1, 2017, Warren Corporation received a $30,000, 5 percent note from a customer in settlement of a $30,000 open account receivable. According to the terms, the principal of the note and interest are payable at the end of 12 months. Warren's fiscal year ends on December 31, 2017.Note 2: On August 1, 2017, to meet a cash shortage, Warren Corporation obtained a $30,000, 6 percent loan from a local bank. The principal of the note and interest expense are payable at the end of six months.

Required:For the relevant transaction dates of each note, indicate the amounts and direction of effects 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. (Reminder: Assets = Liabilities + Shareholders' equity; Revenues - Expenses = Net earnings; and net earnings accounts are closed to retained earnings, a component of shareholders' eq,uity.)

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Statement of Financial Position Shareholders' Statement of Earnings Net Revenues Expenses Earnings Assets Liabilities Equity Date Note 1 April 1, 2017 December 31, 2017 March 31, 2018 Note 2 August 1, 2017 December 31, 2017 January 31, 2018