Homework: Ch 1 Homework Question 2, S1-8 (similar to) > Part 5 of 5 HW Score: 14.49%, 10 of 69 points Points: 4 of 5 Save Jeremy Hutchins is the proprietor of a property management company near the campus of a local university The business has cash of $75,000 and furniture that cost $27,000 and has a market value of $33,000 Debts include accounts payable of $16,000 Hutchins's personal home is valued at $770,000 and his personal bank account contains $21.000 Required Requirement 1. Identify the accounting assumption principle or constraint that best matches each of the following situations Select the accounting assumption principle or constraint that best applies to each situation a Hutchins's personal assets are not recorded on the property management company's balance sheet Economic entity assumption b Hutchins records fumiture at its cost of $27 000 not the market value of $33,000 Cost principle of measurement c Hutchins does not make adjustments for inflation Stable monetary unit assumption d Hutchins missed recording a $2 40 cup of coffee on her financial statements He does not ask her accountant to redo the financial statements because that would cost him an extra $430 Cost-benefit constraint Requirement 2 How much is the owner's equity of the property management company? Jeremy Hutchins has $of equity in the property management company Clear all Check injor