Carleton Builders Ltd. recorded the following summarized transactions during the current year: a. The company originally sold and issued 100,000 common shares. During the current year 6,000 shares were repurchased from th shareholders and retired. Near the end of the current year, the board of directors declared and paid a cash dividend of $8 per share The dividend was recorded as follows: Debit 800,000 Credit General Journal Retained earnings Cash ($8 x 94,000) Dividend income ($8 x 6,000) 752,000 48,000 b. Carleton Builders Ltd. purchased a machine that had a list price of $90,000. The company paid for the machine in full by issuing 10,000 common shares (market price - $8.50). The purchase was recorded as follows: Debit 90,000 Credit General Journal Machine Share capital ($8.50 x 10,000) Gain on purchase of equipment 85,000 5,000 c. Carleton needed a small structure for temporary storage. A contractor quoted a price of $769,000. The company decided to build the structure itself. The cost was $542,000, and construction required three months. The following entry was made: Credit Debit 769,000 General Journal Buildings warehouse Cash Revenue from self-construction 542,000 227,000 d. Carleton owns a plant located on a river that floods occasionally. A severe flood occurred during the current year, causing an uninsured loss of $97.000 (measured as the amount spent to repair the flood damage). The following entry was made: General Journal Debit Credit General Journal Buildings warehouse Cash Revenue from self-construction Debit 769,000 Credit 542,000 227,000 d. Carleton owns a plant located on a river that floods occasionally. A severe flood occurred during the current year, causing an uninsured loss of $97,000 (measured as the amount spent to repair the flood damage). The following entry was made: Credit General Journal Retained earnings, flood loss Cash Debit 97,000 97,000 e. On 28 December, the company collected $76,000 cash in advance for merchandise to be shipped in January. The company's fiscal year-end is 31 December. This transaction was recorded on 28 December as follows: General Journal Cash Sales revenue Debit 76,000 Credit 76,000 eBook Required: For each transaction, select which accounting principle was violated 1-a. The company originally sold and issued 100,000 common shares. During the current year 6,000 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 $8 per References Revenue recognition principle and faithful representation Historical cost principle and revenue recognition Cost principle Faithful representation 1-5. Carleton Builders Ltd. purchased a machine that had a list price of $90,000. 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 Book Print Cost principle erence: Faithful representation 1-c. Carleton needed a small structure for temporary storage. A contractor quoted a price of $769,000. The company decided to build the structure itself. The cost was $542,000, and construction required three months. Revenue recognition principle and faithful representation Historical cost principle and revenue recognition Cost principle Faithful representation 1-d. Carleton owns a plant located on a river that floods occasionally. A severe flood occurred during the current year, causing an uninsured loss of $97.000 (measured as the amount spent to repair the flood damage) Revenue recognition principle and faithful representation Historical cost principle and revenue recognition Cost principle Faithful representation 1-e. On 28 December, the company collected $76,000 cash in advance for merchandise to be shipped in January. The company's fiscal year-end is 31 December Time period and faithful representation Historical cost principle and revenue recognition Cost principle Faithful representation 2. Not available in Connect. 3. In each instance, indicate how the transaction should have been originally recorded. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) points View transaction list eBook Journal entry worksheet 3 4 5 Record declaration and payment of dividend. Note: Enter debits before credits. Transaction General Journal Debit Credit Clear entry View general journal Record entry