The following are unrelated accounting situations and the accounting treatment that was followed in each firm's records:

1. John Company mounts an \(\$ 800,000\) year-long advertising campaign on a national cable television network. The firm's annual accounting period is the calendar year. The television network required full payment in December at the beginning of the campaign. Accounting treatment is Increase Advertising Expense, \(\$ 800,000\)

Decrease Cash, \(\$ 800,000\)

2. Because of a local bankruptcy, machinery worth \(\$ 225,000\) was acquired at a "bargain" purchase price of \(\$ 170,000\). Accounting treatment is

\[ \text { Increase Machinery, } \$ 170,000 \]

\[ \text { Decrease Cash, } \$ 170,000 \]

3. Tony Voes, a consultant operating a sole proprietorship, withdrew \(\$ 30,000\) from the business and purchased stocks as an investment gift to his wife. Accounting treatment is Increase Investments, \(\$ 30,000\)

Decrease Cash, \(\$ 30,000\)

4. Channy Company received a firm offer of \(\$ 96,000\) for a parcel of land it owns that cost \(\$ 50,000 \mathrm{two}\) years ago. The offer was refused, but the indicated gain was recorded in the accounts. Accounting treatment is Increase Land, \(\$ 46,000\)

Increase Revenue from Change in Land Value, \(\$ 46,000\)

Required 

In each of the given situations, indicate which accounting concepts, principles or constraints apply and whether they have been applied appropriately. If you decide the accounting treatment is not generally accepted, discuss the effect of the departure on the balance sheet.