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Two independent situations are described below
1. The owner of the business included his personal dental expenses in the entity's income statement.
2. Depreciation expense was not recorded because to do so would result in a loss for the period.
Required:
Problem 1: Indicate for each situation the accounting principle(s) or reporting characteristics (if any) that are violated. Provide a description for each of the two situations mentioned above.
Problem 2: ' In a system which uses several special journals, it is not necessary to have a general journal'. Do you agree? Explain by providing 5 examples.
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Journalize the following selected tranactions for March 2016 in a two-column journal. Journal entry explanations may be omitted.
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