For each of the following situations, state the accounting principle or concept that has been applied or violated AND provide an explanation. (a) Hong Kong Entertainment Company has organized two concerts in March and May 2021. Tickets were sold in advance in December 2020. from both concerts were recorded as revenue earned in the company's Income Statement for the year ended March 31, 2021. All the money received (i) Accounting Principle / Concept Applied OR Violated (ii) Explanation: John was the only owner of ABC Company. John purchased a birthday gift to his son who was six years old. He asked the accountant of the company to pay for it and record it as the entertainment expense of ABC Company. (b)

For each of the following situations, state the accounting principle or concept that has been applied or violated AND provide an explanation. (a) Hong Kong Entertainment Company has organized two concerts in March and May 2021. Tickets were sold in advance in December 2020. from both concerts were recorded as revenue earned in the company's Income Statement for the year ended March 31, 2021. All the money received (i) Accounting Principle / Concept Applied OR Violated (ii) Explanation: John was the only owner of ABC Company. John purchased a birthday gift to his son who was six years old. He asked the accountant of the company to pay for it and record it as the entertainment expense of ABC Company. (b)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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