The following are transactions recorded by Lock and Key Corporation during the current year.

1. Ordinary operating maintenance on equipment was recorded as follows:

Equipment: 2,500

Accounts Payable: 2,500

2. Lock and Key Corporation received an advance on a custom order for merchandise that will be shipped during the next accounting year.

Cash: 8,000

Sales Revenue: 8,000

3. Lock and Key Corporation is holding inventory on consignment for Rubber Ltd. Lock and Key will only pay Rubber when a sale is made to a customer. Lock and Key made the following entry when it received the inventory:

Inventory: 15,000

Accounts Payable: 15,000

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: 4,000

Cash: 4,000

Required: For each transaction

1) Determine which component of the conceptual framework (qualitative characteristic and/or principle) was violated, if any, and

2) Give the entry that should have been recorded if there was a violation