For each of the transactions in M4-6, 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, - for decrease, and N for no effect.

M 6-7

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.a.?Estimated?electricity?usage at?$450?for December; to?be paid in?January?2019.b. On September 1, 2018, loaned $6,000 to an officer who will repay the loan principal and interest in one year at an annual interest rate of 5 percent.c. Owed wages to 10 employees who worked four days at $200 each per day at the end of December 2018. The company will pay employees at the end of the first week of January 2019.

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