1. Ordinary operating maintenance on equipment was recorded as follows:
Equipment 2,500
Accounts Payable 2,500
2. Pronghorn received an advance on a custom order for merchandise that will be shipped during the be shipped during the next accounting year.
Cash 19,800
Sales Revenue 19,800
3. Pronghorn Corp, is holding inventory on consignment for Rubber Ltd. Pronghorn will only pay Rubber when a sale is made to a customer. Pronghorn made the following inventory:
Inventory 17,100
Accounts Payable 17,100
4. On the last day of the accounting period, a 12-month insurance policy was purchased. The insurance converge is for next accounting year.
Insurance Expense 4,900
Cash 4,900
(a2)
For each transaction, if there was a violation of component of the conceptual framework (i, e., qualitative characteristic, element, element, or principle, or principle), give the entry that should have been recorded, if any.
