Problem 1 Accounting has its own vocabulary and basic relationships. Match the accounting terms at left with the corresponding definition or meaning at right. . 1. Debit 2. Expense 3. Net income 4. Ledger 5. Posting 6. Normal balance 7. Payable 8. Journal 9. Receivable 10. Owner's Equity A. The cost of operating a bjsiness, a decrease in shareholders' equity B. always a liability C. Revenues-Expenses D. Grouping of accounts E. Assets-Liabilities F. Record of transactions G. Always an asset H. Left side of an account 1. Side of an account where increases are recorded J. Copying data from the journal to the ledger . . Problem 2 A friend named by Jay Barlow has asked what effect certain transactions will have on his company. Time is short, so you cannot apply the detailed procedures of journalizing and posting. Instead you must analyze the transactions without the use of a journal. Barlow will continue the business only if he can expect to earn monthly net income of at least $5,000. The following transactions occurred this month; a. Barlow deposited $5,000 cash in a business bank account, and the corporation issued ordinary shares to him b. Borrowed $5,000 cash from the bank and signed a note payable due within 1 year. c. Paid $1,300 cash for supplies d. Purchased advertising in the local newspaper for cash $1,800 e. Purchased office furniture on account, $4,400 f. Paid the following cash expenses for 1 month; employee salary, $2,000; office rent $ 1,200 g. Earned revenue on account, $7,000 h. Earned revenue and received $2,500 cash i. Collected cash from customers on account, $1,200 j. Paid on account, $1,000 *****