Assignment Two Question 1: The following transactions are for Yasser construction services: On March 2, invested $10,000 cash in business. 3/3 purchased used car for $4,000 cash for use in business. 3/9 purchased supplies on account for $500. 3/11 billed customers $2,100 for services performed 3/16 paid $350 cash for advertising. 3/20 received $700 cash from customers billed on March 11. 3/23 paid creditor $300 cash on balance owed. 3/28 withdrew $1,000 cash for personal use by owner. Instructions: For each transaction, indicate the following 1. The basic type of the accounts (asset, liability, or owner equity). 2. The specific account name (cash, rent expense, service revenue, etc.). 3. The effect of whether the specific account is increased or decreased. 4. The normal balance of the specific account. Use the following format: (first transaction is solved as an example) Debited Account Date Basic Specific Normal Basic Credited Account Specific Normal Effect Type Account Balance Type Effect Account Balance 3/2 Asset Cash Increase Owners Debt Owners' Equity Capital Increase Credit 3/3 3/9 Question 2: True/False statements about the General Ledger. 1. The general ledger contains all the asset and liability accounts but no owner's equity 1. accounts. 2. The general ledger is sometimes referred to as simply the ledger. 3. The accounts in the general ledger are arranged in alphabetical order. 4. Each account in the general ledger is numbered for easier identification. 5. The general ledger is a book of original entry. Instructions: Identify each statement as true or false. And correct false statements. Question 3: True/False statements about Accounts: 1. An account is an accounting record of either a specific asset or a specific liability. 2. An account shows only increases, not decreases, in the item it relates to. 3. Some items, such as Cash and Accounts Receivable, are combined into one account. 4. An account has a left, or credit side, and a right, or debit side. 5. A simple form of an account consisting of just the account title, the left side, and the right side, is called a T account. Instructions: Identify each statement as true or false. And correct false statements. 1