Reference no: EM132954123

Rhonda is the owner of Flowers on the Go, an online supplier of floral arrangements. She is paid a salary every week by her business. Over the years Rhonda has built up a personal investment portfolio, purchased from her salary earnings. Rhonda's investment portfolio is shown in the accounting records on the floristry business.

Problem 1: Should the personal investment portfolio be included in the accounting records of the floristry business? Explain your answer by including the key principles of the Principle/Convention

Rhonda receives a large order for a function to be held on 25 June 20x1. The work was performed on the day and client was issued with a Tax Invoice on 27 June 20x1, payable in 14 days. Rhonda wants to record the income in July 20x1, when the money will be received. Rhonda's bookkeeper advises her that according to accounting practice income needs to be recorded in June 20X1 when the work was performed. Your answer should be between 20 and 30 words

Accounting Principle/Convention:

Problem 2: What is the correct date to record the income? Explain your answer by including the key principles of the Principle/Convention

Rhonda purchased a delivery van for her business 3 years ago for $25,000. She has been advised that the van is now only worth $7,000 and wants to change the asset value in her records. Your answer should be between 10 and 20 words

Accounting Principle/Convention:

Problem 3: Should the asset value in the accounting records be changed? Explain your answer by including the key principles of the Principle/Convention