Provide your response in the chart.

DONT FORGET: YOU MUST BE SPECIFIC AND PROVIDE REASONS FOR YOUR STATEMENTS.

1. Ordinary repairs on capital assets were recorded as follows:

Capital assets 10,000

Cash 10,000

Capital assets are collateral for the Banks loan, and the Bank is the key user of these financial statements.

What is the Financial Accounting issue? (ie. recognition, measurement, presentation, disclosure)
Identify and explain the accounting practice violation(s) with reference to the Conceptual Framework for Financial Reporting (Pyramid Illustration in Kieso textbook)
Identify implications to the users of the financial statements
Explain briefly how you would fix the problem from a Proper Accounting Practice perspective. Provide the correct Journal Entry if possible.