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Effects of Adjusting Entries on the Accounting Equ

Effects of Adjusting Entries on the Accounting EquationRefer to the information provided for Matlock Graphic Arts Studio in Problem 4-6A.Required1. Prepare a table to summarize the required adjusting entries as they affect the accounting equation.Use the format in Exhibit 3-1 on page 112. Identify each adjustment by letter.2. Compute the net increase or decrease in net income for the month from the recognition of theadjusting entries you prepared in (1). (Ignore income taxes.)

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