$1.$ Conceptual Connection: Indicate whether each item qualifies as a transaction and should be recorded in the accounting system.

a$.$ California Central University $($CCU$)$ signed a contract to purchase a fleet of Ford Crown Victoria vehicles from Malcom Motors at a total price of $$200,000,$ payable to Malcom in two equal amounts on August $1$ and September $1.$ The cars will be delivered to CCU during August.

This transaction

for recognition because signing a contract

affect the accounting equation.

b$.$ The principal stockholder in Malcom Motors sold $10\%$ of her stock in the company to John Lewis, the president of Malcom Motors, in exchange for $$100,000$ in cash.

This transaction

for recognition because selling stock to another person

affect the total amount of common stock outstanding for the company.

c$.$ Malcom Motors issued new stock to John Lewis in exchange for $$50,000$ in cash.

This transaction

for recognition because the transaction

affect two accounting elements.

d$.$ Malcom Motors owns the building it occupies; the company occupied the building during the entire month of January.

This event

for recognition. There

external event affecting the accounting equation.

e$.$ Malcom Motors owns land used for the storage of cars awaiting sale; the land was used by the company during the entire month of January.

This event

for recognition because Malcom Motors

pay to use the land.

f$.$ Malcom Motors paid its lawyer $$1,000$ for services rendered in connection with the purchase agreement signed with California Central University.

This transaction

to be recorded because two accounting elements

been affected.

g$.$ Maintenance Management Company performed cleaning services for Malcom Motors during January under a contract that does not require payment for those services until March $1.$

This transaction

to be recorded because two accounting elements

been affected.

$2.$ Conceptual Connection: What accounting concept is illustrated by Event b$?$