Ell-6 Identify violation of conceptual framework and correct entries. (LO 4, sum 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. 'Ihe 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 fairvalue of $255,000. The following entry is made: Cost of Goods Sold 25,000 Merchandise Inventory 25,000 4. A coffee machine costing $50 is being depreciated over ve years. The following adjusting uny is made: Depreciation Expense l0 Accumulated DepreciationEquipment 10 S. East Air sells an airline ticket for $650 in February for a trip scheduled inApril. (Assume the earnings approach is used.) The following entry is made: Cash 650 Service Revenue 650 Instructions 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