Which of the following is an example of an event that will be recorded in the accounting records?

1. Alpha Company entered into an agreement with Gama Company to purchase equipment.
2. Demo Company sent a purchase order to James Company to purchase 1,000 units of merchandise.
3. Wang Corporation purchased raw materials worth $1,000 on credit.
4. John Corporation estimated that it will require $125,000 to purchase a new building for office space.

2. For an event to be recorded in the accounting records, it _____.

1. should impact a financial statement element and should be a faithful representation
2. should be an external transaction and should impact a financial statement element
3. should impact at least three financial statement elements and should be an internal transaction
4. should be a faithful representation and should be an external transaction