Meghan Selzer has prepared the following list of statements about the general ledger. Identify each statement as true or false. If false, indicate how to correct the statement1. The general ledger contains all the asset and liability accounts, but no stockholders’ equity accounts. select an option 2. The general ledger is sometimes referred to as simply the ledger. select an option 3. The accounts in the general ledger are arranged in alphabetical order. select an option 4. Each account in the general ledger is numbered for easier identification. select an option 5. The general ledger is a book of original entry.

On february 3, smart company sold merchandise in the amount of $5,800 to truman company, with credit terms of 2/10, n/30. the cost of the items sold is $4,000. smart uses the perpetual inventory system and the gross method. truman pays the invoice on february 8, and takes the appropriate discount. the journal entry that smart makes on february 8 is:

Transactions on april 1 of the current year, andrea byrd established a business to manage rental property. she completed the following transactions during april: opened a business bank account with a deposit of $45,000 from personal funds. purchased office supplies on account, $2,000. received cash from fees earned for managing rental property, $8,500. paid rent on office and equipment for the month, $5,000. paid creditors on account, $1,375. billed customers for fees earned for managing rental property, $11,250. paid automobile expenses for month, $840, and miscellaneous expenses, $900. paid office salaries, $3,600. determined that the cost of supplies on hand was $550; therefore, the cost of supplies used was $1,450. withdrew cash for personal use, $2,000. required: 1. indicate the effect of each transaction and the balances after each transaction: for those boxes in which no entry is required, leave the box blank. for those boxes in which you must enter subtractive or negative numbers use a minus sign. (example: -300)

Acoase solution to a problem of externality ensures that a socially efficient outcome is to