Instructions:Each of the situations below may illustrate a violation of an accounting assumption or principle. Indicate the assumption or principle that is most clearly violated using the following codes:put the correct letterList 2-6 on the answer section and next to each #

Codes

A.Economic entityassumptionG.Materiality

B.Monetary unitassumptionH.Full disclosure principle

C.PeriodicityassumptionI.Cost principle

D.Going concernassumptionJ.Comparability

E.Revenue recognitionprincipleK.No violation of operating guidelines

F.Expense recognition principle

Situations

___C_ 1.Dollar Saver has 20,000 Model 44G cell phones in inventory at a cost of $64 each. Due to the advancement of technology and newer models available, only 4 of Model 44G phones were sold last month. To avoid recognizing a loss on writing off this inventory, Dollar Saver has decided not to issue financial statements until at least half of the remaining Model 44G phones have been sold.

____2.Homer Bates, president of Bates Machinery, took an iPod Touch out of inventory to use as a birthday present for his son. The cost was debited to Supplies Expense.

____3.Wilson, Inc. made no entry to record depreciation on its equipment for 2016

____4.Stockholders invested an additional $43,000 cash in the business in 2016. This investment was reported as revenue on the 2016 income statement.

____5.Toys, Inc. is being liquidated because it has sustained losses for the past few years. It continues to depreciate its assets and prepare financialstatements on the cost basis.

____6.Counters Galore values its pre-made granite it has on hand at its expected selling price since this is the amount the company will receive from customers when it sells the counters to customers. The granite's expected selling price exceeds the price Counters Galore paid for it.