Response to the following questions:
1. Why is it advantageous to a company to initially record each of its transactions in a journal?
2. What is a perpetual accounting system? What journal entries are involved?
3. Give examples of transactions that:
a. Increase an asset and a liability.
b. Increase an asset and stockholders' equity.
c. Increase an asset and decrease an asset.
d. Decrease an asset and a liability.
e. Decrease an asset and stockholders' equity.