Recording Adjusting Entries (Accrued Accounts) In each of the following transactions (a) through (c) for Catena's Marketing Company, use the three-step process illustrated in the chapter to record the adjusting entry at the end of the current year, December 31. The process includes (1) determining if revenue was earned or an expense was incurred. (2) determining whether cash was received or paid in the past or will be received or paid in the future, and (3) computing the amount of the adjustment. a Estimated electricity usage at $450 for December; to be paid in January of next year. b. 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. c Owed wages to 10 employees who worked four days at $200 each per day at the end of the current year. The company will pay employees at the end of the first week of next year. Determining Financial Statement Effects of Adjusting Entries (Accrued Accounts) For each of the transactions in M4-6, indicate the amounts and the direction of effects of the adjusting entry on the elements of the balance sheet and income statement. Using the following format, indicate + for increase, for decrease, and NE for no effect. M4-6 LO4-1 M4-7 LO4-1 BALANCE SHEET INCOME STATEMENT Transaction Assets Liabilities Stockholders' Equity Revenues Expenses Net Income a. b. C