III. Effects of Adjustments on the Accounts (2 points per transaction) INSTRUCTION: Indicate the effect of each of the adjusting entries upon the major elements of the statement of financial position and income statement. The company records prepayments in asset and liability accounts. Organize your answers in tabular form, using the column headings given and the symbols (+) for increases, (-) for decreases, and (NE) for no effect. The answer for adjusting entry (a) is provided as an example. STU Services adjusts and closes its books at the end of each month. On October 31, 2019 adjusting entries were prepared to record the following: a. Interest expense that has accrued during October. b. Revenue earned during October but has not been billed yet to customer. c. Uncollectible accounts expense for the month of October. d. Depreciation expense for October. e. The portion of insurance premium which has expired in October. f. Accrued salaries of employees at the end of October. Statement of Financial Positions Income Statement AJE Assets Liabilities Equity Revenue Expenses Profit A NE + NE + B D E F IV. True or False (1 point each) INSTRUCTION: Write the letter T if the statement is true and the letter F if the statement is false