Question 1 Adelaide Company sold products for $10,000 to a customer on June 5, 2017. The customer will pay on August 10, 2017. James Faulkner is preparing the accounting books of the company for the period ended June 30, 2017. He wants to record a revenue in relation to the above mentioned transaction. However, the manager believes that sales should be recorded in the next accounting year as cash will be received in August 10, 2017. Requirements: I. Should a journal entry be recorded on the June 5, 2017? What accounting principle is applied in the record of this transaction? II. What is the journal entry for this transaction on the June 5, 2017? [4 4 8 marks] Question 2 tice exerci Steve Smith is running a departmental store in Adelaide. He bought the following items: a truck for $150,000; office stationeries for $10,000 which would be used in the current month I. II. Steve knows that purchase can be recorded either as an asset or an expense. However, he is not sure whether to record these expenditures as expense or asset. He approached you for help? Requirements: What is an asset and an expense? How these things are different in accounting? Provide journal entries for the two transactions