Refer to P4-2.

Required: 1. Indicate whether each transaction relates to a deferred revenue, deferred expense, accrued revenue, or accrued expense. 2. Using the following headings, indicate the effect of each adjusting entrx and the amount of the effect.

I'se 4 for increase. - for decrease, and NE for no effect. I Reminder: Assets = Liabilities *

Stockholders' Equity: Revenues - Expenses = Net Income: and Net Income accounts are closed to Retained Earnings, a part of Stockholders' Equity)

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BALANCE SHEET INCOME STATEMENT Transaction Assets Liabilities Stockholders' Equity Net Revenues Expenses Income a. b. C. etc.