<p>The apostrophe can be used in both ways:</p>
<p>1. Possessive
Ex 1. Jack’s car is new
Ex 2. Susie’s house is big.</p>
<p>2. Contractions
Ex 1. Don’t -> do not
Ex 2. Didn’t -> did not
Ex 3. He’s -> he is
Ex 4. You’re -> you are</p>
<p>In question number 1, the apostrophe is used as a possessive. I think you’re confused…</p>