1. Just as we did in chapter two, analyzing transactions is critical to making sure that we understand the transactions prior to recording it in the appropriate account. Referencing the three steps recommended by the author of your text for analyzing the effects of business transactions--which step did you find most difficult/easy, and most helpful? Why is this the case and what supports your opinion? Explain!

2. What is the trial balance and what is the purpose of the trial balance? What does the income statement tell us? what does the balance sheet tell us?