For each of the following transactions,indicate the amounts and direction of effects of the adjusting entry on the elements of the balance sheet and income statement.Using the following format,indicate + for increase,and - for decrease,and NE for no effect.
Transactions:
A.Wages of $5,800 have been earned, but not paid to employees at the end of the year.
B.Supplies in the amount of $2,000 were used during the year, which are currently recorded in the office supplies inventory account.
C.Interest has accrued on a bank loan.
Correct Answer:
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