Questions 6 and 7 refer to the following information:

X Company, a merchandiser, prepares monthly financial statements. On June 30, its accountant made adjusting entries to record:

• $5,739 of June interest on a bank loan to be paid in July
• $1,890 of wages that were earned by employees in June but to be paid in July
• $4,991 of rent and insurance for June that was prepaid on June 1 but had expired
• $3,664 of depreciation on factory equipment
• a $2,758 June utility bill received in June, to be paid in July
• a shipment of products in June for which customers paid $1,240 in May

6. What would be the effect of these entries on total assets in June?

A: $-5,998B: $-6,778C: $-7,659D: $-8,655E: $-9,780F: $-11,052

7. What would be the effect of these entries on total liabilities in June?

A: $5,711B: $6,682C: $7,818D: $9,147E: $10,702F: $12,521