Exercise 4-11 (Algo) Record transactions and adjustments LO 2, 6, 7 Show the effect, if any, of the transaction entry or adjusting entry on the appropriate balance sheet category or on the income statement by selecting the amount and indicating whether it is an addition () or a subtraction - Column headings reflect the expanded balance sheet equation; items that affect net income should not be shown as affecting stockholders' equity. In some cases only one column may be affected because all of the specific accounts affected by the transaction are included in that category Transaction a has been completed as an ustration. Provided services to a client on account, revenues totaled $520. b. Paid an insurance premium of $480 for the coming year. An asset, Prepaid Insurance, was debited c. Recognized insurance expense for one month from the premium transaction in b via a reclassification adjusting entry d. Paid $725 of wages accnied at the end of the prior month. e. Paid $2,600 of wages for the current month 1. Accrued $525 of wages at the end of the current month. 9. Received cash of $1,525 on accounts receivable accrued at the end of the prior month Required: a. Indicate the financial statement effect b. Prepare the journal entry for the above transactions Complete this question by entering your answers in the tabs below. Required A Requ Indicate the financial statement effect Be Sheet Celegory Income Statem Transaction Assole Adjustment Docknalders Equity 800 Net oose Effect -520