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Exercise 2-10 The following are transactions recorded by Indigo Corporation during the current year. 1. Ordinary operating maintenance on equipment was recorded as follows: Equipment 3,700 Accounts Payable 2. Indigo received an advance on a custom order for merchandise that will be shipped during the next accounting year. Cash 3,700 19,200 Sales Revenue 19,200 3. Indigo Corporation is holding inventory on consignment for Rubber Ltd. Indigo will only pay Rubber when a sale is made to a customer. Indigo made the following entry when it received the inventory: Inventory 17,100 Accounts Payable 4. On the last day of the accounting period, a 12-month insurance policy was purchased. The insurance coverage is for the next accounting year. Insurance Expense 17,100 5,200 Cash 5,200 (a2) For each transaction, if there was a violation of component of the conceptual framework (i.e., qualitative characteristic, element, or principle), give the entry that should have been recorded, if any. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) No. Account Titles and Explanation Debit Credit 1. 2. 3. 4