Question No-1: [15] Paul Richard has a business named Splash-wear which sells various leather jackets to the market. During the month of February, the following transactions were occurred: Feb 1: Purchased jackets on account from a supplier of $30,000 of which $15,000 paid in cash. Feb 6: Sold clothes of $75,000 in which 50% has been received in cash and for the rest 2/10 net 30 discount term has been imposed. Feb 9: Paid insurance premium for $12,000 in cash which covers 1 year insurance policy. Feb 13: Payment has been received from the accounts receivable (related to Feb 6). Feb 17: One of the customers have paid $1,500 as pre-order charge for a classy leather jacket which is not available in the store right now. Feb 21: Made full payment to the supplier (Feb 1) of $15,000, less 3% discount. Feb 23: Utilities bill of $700 has been paid from the bank. Feb 26: Purchased staplers, scissors, shopping bags, punching machine and envelops for $ 5,500 on account. Feb 28: One of the previous payment from an account receivable is being uncollectible of $1,000. Required: a) Present the journal entries for the above transactions. b) Post the journal entries to the ledger. c) Present a trial balance from the ledger accounts. Question No-2: [5] 'Valuing assets at historical cost prevents overstating an asset's value'- Interpret the statement with example.