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 the 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: General Journal Debit 800,000 Credit Retained earnings Cash ($8 x 94,000) Dividend income ($8x 6,000) 752,000 48,000 b. Carleton Builders Ltd. purchased a machine that had a list price d $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: General Journal Debit Credit Machine Share capital ($8.50 x 10, e00) Gain on purchase of equipment 90,000 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: Debit Credit General Journal Buildings-warehouse Cash 769,000 542,000 227,000 Revenue from self-construction 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 Retained earnings, flood loss Cash 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 Debit 76,000 Credit Cash Sales revenue 76,e00 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 deciared and paid a cash dividend of $8 per share. @Revenue recognition principle and foithful representation Historical cost principle and revenue recognition o Cost principle 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 OHistorical 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 $97,000 (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 OFaithful 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 O Historical cost principle and revenue recognition O 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 journeal entry required" in the first eccount field.) View transaction list Journal entry worksheet Record declaration and payment of dividend. Note: Enter debits before credits. Transaction General Journal Debit Credit Retained earnings 752.000 1 Cash 752.000 View general journal Record entry Clear entry 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 the 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: General Journal Debit 800,000 Credit Retained earnings Cash ($8 x 94,000) Dividend income ($8x 6,000) 752,000 48,000 b. Carleton Builders Ltd. purchased a machine that had a list price d $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: General Journal Debit Credit Machine Share capital ($8.50 x 10, e00) Gain on purchase of equipment 90,000 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: Debit Credit General Journal Buildings-warehouse Cash 769,000 542,000 227,000 Revenue from self-construction 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 Retained earnings, flood loss Cash 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 Debit 76,000 Credit Cash Sales revenue 76,e00 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 deciared and paid a cash dividend of $8 per share. @Revenue recognition principle and foithful representation Historical cost principle and revenue recognition o Cost principle 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 OHistorical 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 $97,000 (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 OFaithful 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 O Historical cost principle and revenue recognition O 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 journeal entry required" in the first eccount field.) View transaction list Journal entry worksheet Record declaration and payment of dividend. Note: Enter debits before credits. Transaction General Journal Debit Credit Retained earnings 752.000 1 Cash 752.000 View general journal Record entry Clear entry