Reference no: EM132656288

1. Ordinary operating maintenance on equipment was recorded as follows: Equipment 2,500 Accounts Payable 2,500

2. Trimm 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. Trimm Corporation is holding inventory on consignment for Rubber Ltd. Trimm will only pay Rubber when a sale is made to a customer. Trimm 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

Problem 1: Determine which component of the conceptual framework (that is, qualitative characteristic, element, or principle) was violated, if any, and give the entry that should have been recorded if there was a violation. (Canadian Intermediate Accounting)