Directions. Indicate which accounting principle is violated. Choose your answers from the box. Write your answers on a separate sheet of paper. Accrual accoùnting Business entity Time Period Аccrual Time period Going Concern Business Entity Cost Materiality Matching 1. George bought a racing car and as an owner and a manager of his own company he gave the receipt to the accountant who recorded it as an asset of the business 2. A machine was purchased from Japan for 350,000 Yen and it was shown in the statement of financial position of the company. It was reported at that amount while all the other assets were reported in Philippine peso. 3. Henry Wong has no plan of preparing financial statements for his business. He has a prediction that his business will be closed after 20 years and that is the only time that he is going to prepare the statements. 4. Roger has a shoe store and operates a canteen. The statement of financial position shows that the assets of the canteen arc reported in the statement of financial position of the shoe store. 5. A saw was bought by Mike Pacardo costing Php 1,000.00 and it was immediately recorded as an asset.

You are given the two financial statements (the photo below). The owner, Mr. Howell, has asked you to give recommendations as to how he can improve the working capital of the shop. Enumerate what he can do to improve his operations. State the basis of your claim and any supporting computation.

1. Record the effect of the following transactions on the accounting equation using a table similar tothe example.a. Owen inherited $20,000 and invested the cash in the business.b. Performed services for a client and received cash of $700.c. Purchased supplies on account, $1,000d. Invested personal cash of $1,000 in the business.Prepare Income Statement and Balance Sheet. (Ans: Net profit= $2,100 Balance = $22,300)

Required:   Complete the accounting equation and journal entries for the transactions given below. Complete the following ledger accounts: Cash, Capital, Accounts receivable, Accounts payable, Supplies, Fees earned. (You do not have to balance the accounts)   The following transactions appeared in the records of Canada Services (the business):   C Canada, the owner, invests $20 000 cash, and a building (cost $80 000, valuation $90 000) into the business. Purchase office furniture for $7 000. $2 000 was paid in cash and the remainder on account. Canada, the owner, paid his child’s school fees for $2 500 and his water and electricity bill of $500 in cash withdrawn from the business. Canada performed electrical and plumbing services for $4 000 cash and billed the clients for $6 000 on account. Canada Services ordered and received office supplies from ABC Company, on account, for $3 000. $4 000 was received from clients for services provided by Canada Services. The business paid…