Note 1: On April 1, 2017, Warren Corporation received a $52,000, 5 percent note from a customer in settlement of a $52,000 open account receivable. According to the terms, the principal of the note and interest are payable at the end of 12 months. Warrens fiscal year ends on December 31, 2017.

Note 2: On August 1, 2017, to meet a cash shortage, Warren Corporation obtained a $52,000, 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. (Reminder: Assets = Liabilities + Shareholders equity; Revenues Expenses = Net earnings; and net earnings accounts are closed to retained earnings, a component of shareholders equity.) (Do not round intermediate calculations. Enter any decreases to account balances with a minus sign.)

Note 1: On April 1, 2017, Warren Corporation received a $52,000, 5 percent note from a customer in settlement of a $52,000 apen 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 $52,000, 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. (Reminder: Assets = Liabilities Shareholders equity Revenues Expenses Net eamings; and net earnings accounts are closed to retained eamings, a component of shareholders' equity) (Do not round intermediate calculations. Enter any decreases to account balances with a minus sign.) Statement of Financial Position Statement of Earnings Date Assets Liabilities Shareholders Revenues Expenses Net earnings Note 1 April 1, 2017 December 31, 2017 March 31, 2018 Note 2: August 1, 2017 December 31, 2017 January 31, 2018