Carleton Builders Ltd recorded the following summarized transactions during the current year a. The company originally sold and issued 110,000 common shares. During the current year 11,000 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 $6 per share. The dividend was recorded as follows: Credit Debit 660,000 General Journal Retained earnings Cash (56 99,000) Dividend income (56 - 11,000) 594,000 66,000 b. Carleton Builders Ltd. purchased a machine that had a list price of $85,000. The company paid for the machine in full by issuing 10,000 common shares market price = $8.20). The purchase was recorded as follows: Credit Debit 55,000 General Journal Machine Share capital (58.20 * 10.000) Gain on purchase of equipment 2.000 3.000 c. Carleton needed a small structure for temporary storage. A contractor quoted a price of $779.000 The company decided to build the structure itself. The cost was $547000, and construction required three months. The following entry was made Credis General Journal Busigasenne Debe 17.30 50.000 d Carleton owns a plant located on a liver that floods occasionally. A severe flood occurred during the current veat causing an c. Carleton needed a small structure for temporary storage. A contractor quoted a price of $779,000. The company decided to build the structure itself. The cost was $547000, and construction required three months. The following entry was made Credit General Journal Buildings warehouse Cash Revenue from self-construction Debit 779,000 547,000 232,000 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 $96.000 (measured as the amount spent to repair the flood damage). The following entry was made General Journal Debit Credit Retained earnings, flood 103 96,000 Canh 96,000 e. On 28 December, the company collected $74,000 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 Debit 74,000 Credit Can sales revenue 74,000 Required: For each transaction, select which accounting principle was violated ed from the St #1 Seved Save & Exit Su Help Required: For each transaction, select which accounting principle was violated 1 a. The company originally sold and issued 110,000 common shares During the current year 11,000 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 $6 per share O Revenue recognition principle and faithful representation Historical cost principle and revenue recognition O Cost principle O Faithful representation 1-b Carleton Builders Ltd, purchased a machine that had a list price of $85,000. The company paid for the machine in full by issuing 10,000 common shares (market price - $8.20). O Revenue recognition principle and faithful representation O 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 $779,000. The company decided to build the structure itself. The cost was $547,000, and construction required three months. O Revenue recognition principle and faithful representation Historical cost principle and revenue recognition Cost principle O 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 $96,000 (measured as the amount spent to repair the flood damage). O Revenue recognition principle and faithful representation Historical cost principle and revenue recognition Cost principle Faithful representation 1e On 28 December, the company collected $74,000 cash in advance for merchandise to be shipped in January. The company's fiscal year-end is 31 December 5 Next 1e. On 28 December, the company collected $74,000 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 O 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.) View transaction list Journal entry worksheet 2 1 5 3 View transaction list Journal entry worksheet 1 2 3 4 5 Record declaration and payment of dividend. Note: Enter debits before credits. General Journal Debit Credit Transaction 1 Record entry Clear entry View general journal View transaction list Journal entry worksheet