Current Attempt in Progress Business transactions for Ellis Company and East Air follow: 1. Merchandise inventory worth $50,000 is acquired at a cost of $42,000 from a company going out of business. The following entry is made: Merchandise Inventory 50.000 Cash 42.000 Cost of Goods Sold 8,000 2. The president of Ellis Company, Evan Ellis, purchases a computer for personal use and charges it to his expense account. The following entry is made: Office Expense 1.000 Cash 1,000 3. . Merchandise inventory with a cost of $280,000 is reported at its fair value of $255,000. The following entry is made: 3. Merchandise inventory with a cost of $280,000 is reported at its fair value of $255,000. The following entry is made: 25,000 Cost of Goods Sold Merchandise Inventory 25,000 4. A coffee machine costing $50 is being depreciated over five years. The following adjusting entry is made: 10 Depreciation Expense Accumulated Depreciation-Equipment 10 5. East Air sells an airline ticket for $650 in February for a trip scheduled in April. (Assume the earnings approach is used.) The following entry is made: Cash 650 Service Revenue 650 In each of the situations above, identify the concept that has been violated, if any, If a journal entry is incorrect, give the correct entry