E Co. is making adjusting entries for the year ended 12/31/2015. An analysis of the firm's records discloses the following item: Wages of $6,000 earned by employees during December were unpaid and unrecorded. The next payroll date will be January 8 of the next year. 1. Identify the type of adjustment as a "unearned revenue", "accrued revenue", "prepaid expense", or "accrued expense". Type of adjustment: accrued expense 2. Prepare the adjusting entry that should be recorded at 12/31/2015 by filling "debit" or "credit" in the blank in front of each accounts. Debit Wages Payable Credit Wages Expenses 3.Indicate the direction of effects of the adjusting entry on the elements of the balance sheet and income statement. Fill in each blank with "Increase", "Decrease", or "No Effect". Assets No effect Liabilities Increase Shareholders' Equity No effect Revenues No effect Expenses Increase