Required:1. For each transaction, identify the inappropriate treatmentand accounting principe violated.2. Give the...Required:1. For...

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Accounting

Required:
1. For each transaction, identify the inappropriate treatmentand accounting principe violated.
2. Give the original entry should have been made.
Question 1. Routine repairs on equipment were recorded asfollows: dr equipment 500, cr cash 500.
Question 2. The company sustained a 96000 storm damage lossduring the current year. The company had no insurance. Mawani Inc.reported loss as follows:
St of retained earnings-storm loss 24000
st of financial position(asset): Deferred charge-storm loss72000
Question 3. Mawani's balance sheet showed acc receeivable of$95000. This amount included a 42000 three year loan to the companypresident. The maturiity date of the loan was not specified.

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4.3 Ratings (771 Votes)

1 Inappropriate Treatment Principle Violated Debit Credit Routine expense was treated as a capital expenditure so it was debited originally Matching Principle Repair See Answer

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In: AccountingRequired:1. For each transaction, identify the inappropriate treatmentand accounting principe violated.2. Give the...Required:1. For each transaction, identify the inappropriate treatmentand accounting principe violated.2. Give the original entry should have been made.Question 1. Routine repairs on equipment were recorded asfollows: dr equipment 500, cr cash 500.Question 2. The company sustained a 96000 storm damage lossduring the current year. The company had no insurance. Mawani Inc.reported loss as follows:St of retained earnings-storm loss 24000st of financial position(asset): Deferred charge-storm loss72000Question 3. Mawani's balance sheet showed acc receeivable of$95000. This amount included a 42000 three year loan to the companypresident. The maturiity date of the loan was not specified.