John Chang has been operating a plumbing business as a proprietorship (John Chang Plumbing). The following events took place during the month of June : LOADING... (Click the icon to view transactions.) Required Identify the accounting assumption, principle, or characteristic that would be applicable to each of the events, and discuss the effects it would have on the financial statements of John Chang Plumbing. June 1 The equipment should be recorded at its to John, not at its original cost purchase price to his brother or at its original cost. purchase price. replacement cost. June 3 Cost principle Economic-entity assumption Going-concern assumption Reliability characteristic Stable-monetary-unit assumption The work should be recorded at the amount charged the amount the work was worth as the cash received normal billing schedule is the only objective evidence of what the work was worth. June 10 Cost principle Economic-entity assumption Going-concern assumption Reliability characteristic Stable-monetary-unit assumption This event should should not be recorded as a transaction since a small cost no cost was paid or received with the signing of the lease. June 18 Cost principle Economic-entity assumption Going-concern assumption Reliability characteristic Stable-monetary-unit assumption The loan should should not be recorded by the company as it is a business personal liability. June 28 Cost principle Economic-entity assumption Going-concern assumption Reliability characteristic Stable-monetary-unit assumption The withdrawal should be recorded at $5,000 $7,000 $12,000 since the withdrawal does does not relate to the business. The $5,000 $7,000 $12,000 that John paid on the loan is irrelevant relevant to the records of John Chang Plumbing as it is a business personal transaction and, therefore, should should not be recorded by the company. June 30 Cost principle Economic-entity assumption Going-concern assumption Reliability characteristic Stable-monetary-unit assumption John must change leave the value of the shop equipment. Accountants assume that the dollar's purchasing power is relatively stable. subject to inflation.