Required:

1. For each transaction, identify the inappropriate treatment and accounting principe violated.

2. Give the original entry should have been made.

Question 1. Routine repairs on equipment were recorded as follows: dr equipment 500, cr cash 500.

Question 2. The company sustained a 96000 storm damage loss during the current year. The company had no insurance. Mawani Inc. reported loss as follows:

St of retained earnings-storm loss 24000

st of financial position(asset): Deferred charge-storm loss 72000

Question 3. Mawani's balance sheet showed acc receeivable of $95000. This amount included a 42000 three year loan to the company president. The maturiity date of the loan was not specified.