1. Trial Balance

a. Explain the purpose of the trial balance.

b. If the trial balance balances, does that indicate all of journal entries have been posted correctly and in the proper month? Please explain

Point Value = 8

2. Create a transaction that will decrease an asset and decrease equity.

Point Value = 10

3. On August 31, 2020 Customer Over There owes the Wood Company $16,000. On Sept 7, 2020. Over There sent a check for 50%, to Wood Company, for the amount due. Please explain how theSept 7 transaction effects the income statement for Wood Company.

Point Value = 10