Show the effect, if any, of the transaction entry or adjusting entry on the appropriate balance sheet category or on the income statement by selecting the amount and indicating whether it is an addition (+) or a subtraction (). Column headings reflect the expanded balance sheet equation; items that affect net income should not be shown as affecting stockholders' equity. In some cases, only one column may be affected because all of the specific accounts affected by the transaction are included in that category. Transaction a has been completed as an illustration.

A. Provided services to a client on account; revenues totaled $540.

B. Paid an insurance premium of $480 for the coming year. An asset, Prepaid Insurance, was debited.

C. Recognized insurance expense for one month from the premium transaction in b via a reclassification adjusting entry.

D. Paid $750 of wages accrued at the end of the prior month.

E. Paid $2,600 of wages for the current month.

F. Accrued $600 of wages at the end of the current month.

G. Received cash of $1,550 on accounts receivable accrued at the end of the prior month.

Required:

a. Indicate the financial statement effect.

b. Prepare the journal entry for the above transactions.

Complete this question by entering your answers in the tabs below. Required A Required B Indicate the financial statement effect. Balance Sheet Category Liabilities Income Statement Net Income Effect Transaction/ Adjustment a. Assets Stockholders' Equity +540 +540 b. C. d. e. f. g. Required A Required B > Prepare the journal entry for the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 N Record the $540 services provided to a client on account. Note: Enter debits before credits. Event General Journal Debit Credit a. Record entry Clear entry View general journal Journal entry worksheet Record the $480 insurance premium paid for the coming year. Note: Enter debits before credits. Event General Journal Debit Credit b. Record entry Clear entry View general journal Record the payment of $750 wages accrued at the end of the prior month. Note: Enter debits before credits. General Journal Debit Credit Event d. Record entry Clear entry View general journal Record the $600 of wages accrued at the end of the current month. Note: Enter debits before credits. Event General Journal Debit Credit f. Record entry Clear entry View general journal