Q-3. In each of the following transaction (a) through (c) for Canteen Market Company the amount and the direction of effects of the adjusting entry on the elements of the balance sheet and income statement. Indicate + for increase for decrease. (Reduction in account balance should be indicated with a minus sign)

1. Estimate electricity usage $450 for December to be paid in January next year
2. On September 1 of the current year, loaned $6,000 to an officer who will repay the loan principal and interest in one year at an annual interest rate of 14 percent
3. Owed wages to 10 employees who worked four days at $200 each per day at the current year. The company will pay employees at the end of the first week next year.

Balance sheet Income Statement

Transaction Assets Liabilities Stockholder Equity Revenue Expenses Net Income

a

b

c