ACCT 201 Case Spring 2021 Page 3 REQUIRED: Answer each of the following questions. Be sure to show your calculations where indicated. Question 1: Answer each of the following A. Olivia Gabriel owns Gabriel Construction Company. On March 16, the business received $4,000 from services completed that day and $2,800 for a job to be performed in April. 1. How much revenue should Gabriel Construction Company record on March 167 2. What Generally accepted Accounting Principle is being followed by Gabriel Construction Company in recognizing revenue? B. In June, Olivia Gabriel ventures into a new industry and opens a restaurant called Gabriel Eating. Olivia must prepare separate financial statements for Gabriel Construction Company as well as Gabriel Eating. This statement describes which Generally Accepted Accounting Principle? C. Gabriel Eating purchased the land on which its building is located during 2020 for $55,000 On December 31, 2021, the land has an appraised value of $61,000. 1. By what amount should the Land account be increased in 20217 2. What Generally Accepted Accounting Principle is being followed by Gabriel Eating regarding the reporting of the Land? Question 2: On May 3, EF Media purchased $55,000 of merchandise to resell, terms 2/15, n/30, from JP Analytics Company. Assume that EF Media uses the perpetual inventory system. What account is debited on May 3 when the merchandise is purchased? b On May 10, EF Media returned $5,000 of the merchandise purchased. (1) What account is debited on May 10 for the return? (2) How much does EF Media owe JP Analytics Company AFTER the return (what's the balance in the account payable to Analytics Company) EF Media pays the balance due on May 16; how much is paid to JP Analytics