For each transaction, select which accounting principle was violated. 1-a. The company originally sold and...
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For each transaction, select which accounting principle was violated. 1-a. The company originally sold and issued 136,000 common shares. During the current year 24,000 shares were repurchased from the shareholders and retired. Near the end of the current year, the board of directors declared and paid a cash dividend of $7 per share. Revenue recognition principle and faithful representation Historical cost principle and revenue recognition Cost principle Faithful representation 1-b. Carleton Builders Ltd. purchased a machine that had a list price of $96,000. The company paid for the machine in full by issuing 10,000 common shares (market price =$8.50). Revenue recognition principle and faithful representation Historical cost principle and revenue recognition Cost principle Faithful representation 1-c. Carleton needed a small structure for temporary storage. A contractor quoted a price of $805,000. The company decided to build the structure itself. The cost was $560,000, and construction required three months. Revenue recognition principle and faithful representation Historical cost principle and revenue recognition Cost principle Faithfill renrecentation
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For each transaction, select which accounting principle was violated. 1-a. The company originally sold and issued 136,000 common shares. During the current year 24,000 shares were repurchased from the shareholders and retired. Near the end of the current year, the board of directors declared and paid a cash dividend of $7 per share. Revenue recognition principle and faithful representation Historical cost principle and revenue recognition Cost principle Faithful representation 1-b. Carleton Builders Ltd. purchased a machine that had a list price of $96,000. The company paid for the machine in full by issuing 10,000 common shares (market price =$8.50). Revenue recognition principle and faithful representation Historical cost principle and revenue recognition Cost principle Faithful representation 1-c. Carleton needed a small structure for temporary storage. A contractor quoted a price of $805,000. The company decided to build the structure itself. The cost was $560,000, and construction required three months. Revenue recognition principle and faithful representation Historical cost principle and revenue recognition Cost principle Faithfill renrecentation 