Example 1. Transactions - To Illustrate Notion of What is Recorded and What May Not Following are events. Distinguish if need to be treated as accounting transaction for the company Huge Boulder and Stone Mother Limited. The owner of the company is Ugly Ozzie Mitchell. The company is a manufacturer of make-up and masks. 1) The owner of Huge Boulder and Stone Mother Limited decides to insert more funds into the company. The amount inserted is $100,000 in cash and vehicle with a historical cost of $250,000 but market value independently assessed to be $180,000. 2) The company signs a MOU with the Ministry of Finance to explore potential future IT development and training initiatives. The potential future value of the MOU could be $2,000,000 3) The company (based on Dubai) purchases a new piece of equipment from a manufacturer in South Korea. The piece of equipment is currently on a ship in the Pacific Ocean and is expected to arrive in 3 weeks. 4) The company sells 100 new face masks today for a movie. The sale is accompanied by a 5-year warranty agreement to repair any faulty parts. 5) The owner's daughter the personal credit card of the owner to buy a new car. 6) The company purchased at the start of the year a new factory. At the end of the year the company is preparing its financial statements. The factory has been used consistently throughout the year. And assessor said that factory is only worth 10% of original purchase price. The company is successful and continue into future. 7) The company purchased a new computer worth $10,000. The company has sales revenue of $1,000,000 per year. The company also purchased office supplies for $500. 8) The company has been involved in two legal disputes that just had decisions made. In case one, the highest court in the land decided the company had breached a contract and must compensate the other party $10,000,000. In the second case, a lower court has decided that you have been defamed by the defendant and you have been awarded compensation of $5,000,000. There is a high chance the defendant will appeal the case. 9) The company purchased a truck for $100,000 paying $50,000 in cash. 10) The company received a long awaited invoice for utility services consumed more than 18 months ago 11) The company has developed a dedicated customer base that are very loyal to the company. This loyalty has assisted in the growth of the company. 12) The mother of the owner ate all the food at the last company retreat last week. It cost $300,000. The company had to truck in $200,000 of more food which she ate of. The owner's mother is not employed by the company but was there as a speaker