New World Dealer Pty Ltd had a number of major business transactions and events during the year ended 30 June 2020.

An extract is given below:

Transaction 1:

The owner of New World Computer Pty Ltd Jason Gordon took one of the laptop computers that was intended for sale and gifted it to his daughter on her 21^st birthday. The cost of the computer was $2,000 and recorded as a decrease in inventory and an increase in cost of goods sold for the business.

Transaction 2:

Jason Gordon, the owner of New World Computer Pty Ltd, wanted to make his companys 2019 profit looks even better. He did not record an interest payment of $10,000 incurred but not due to be paid unit August 2020.

REQUIRED:

For each of the above situation:

1. Identify if any accounting concept or principle has been violated. If so, briefly explain the relevant concept or principle.
2. Record the correct journal entry that New World Computer Pty Ltd should have done if you believe they have violated any accounting concept or principle. (Narrations not required).