1. For each of the following independent situations, describe the accounting assumptions, characteristics, or conventions that have been violated.

a. Hilary is the sole proprietor of Hilary Co. During March, the following items were recorded as expenses on the firms books:

Rent on office $500

Supplies for personal use $100

Advertising $250

Employees Wages $700

Pleasure Travel $200

b. Weiss Corporation spent $200 on printing materials and printer cartridges during the current year. These items were listed in the asset section of the balance sheet, labeled office supplies.

c. Over the past few years, the president of Lansing Company has purchased a number of paintings to decorate his office. Recently, one of the artists died, and his paintings have increased in value by over 200 percent. The president has therefore instructed the accounting department to increase the recorded cost of the paintings to reflect this change.

d. Carol Inman, the accountant for Borsting Com, was preparing the firms financial statements. During her analysis, she noticed that the firm had five acres of land in the heart of downtown that it had purchased a couple of years ago for $900,000. Because of a rather severe economic recession that began last year, the market value of real estate has fallen. A similar plot of land recently sold for $500,000, but Carol had decided not to reduce the recorded value of the land.