Below are three transactions recorded by Ace Builders Ltd during the current year For each transaction, determine which component of the conceptual framework (i e qualitative characteristics, element or foundational principle) was violated (if any) and briefly explain why If there was a violation, give the entry that should have been originally recorded (narratives are not required) If no entry should have been recorded, write no entry required (4 marks each) Ace Builders needed a small structure for temporary storage A contractor quoted a price of $769,000 The company decided to build the structure itself The cost was $542,000, and construction required three months The following entry was made Buildings warehouse 769,000 Cash 542,000 Revenue from self construction 227,000 On 28 December, the company collect $76,000 cash in advance for merchandise to be shipped in January The companys fiscal year end is 31 December This transaction was recorded on 28 December as follows Cash 76,000 Sales revenue 76,000 Required Components of the conceptual framework violated and briefly explain nature of violation (if any) ii Give the original entry to properly record the transaction, if any

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Question: Below are three transactions recorded by Ace Builders Ltd during the current year. For each transaction, determine which component of the conceptual framework (i.e. qualitative

Below are three transactions recorded by Ace Builders Ltd during the current year. For each transaction, determine which component of the conceptual framework (i.e. qualitative characteristics, element or foundational principle) was violated (if any) and briefly explain why. If there was a violation, give the entry that should have been originally recorded (narratives are not required). If no entry should have been recorded, write no entry required. (4 marks each).

Ace Builders needed a small structure for temporary storage. A contractor quoted a price of $769,000. The company decided to build the structure itself. The cost was $542,000, and construction required three months. The following entry was made:

Buildings-warehouse 769,000

Cash 542,000

Revenue from self-construction 227,000

On 28 December, the company collect $76,000 cash in advance for merchandise to be shipped in January. The companys fiscal year-end is 31 December. This transaction was recorded on 28 December as follows:

Cash 76,000

Sales revenue 76,000

Required: Components of the conceptual framework violated and briefly explain nature of violation (if any): ______________________________________________

______________________________________________________________

ii.. Give the original entry to properly record the transaction, if any:

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