John Chang has been operating a plumbing business as a proprietorship (John Chang Plumbing). The following events took place during the month of June 2019: (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 to his brother or at its June 3 The work should be recorded at as the is the only objective evidence of what the work was worth June 10 This event was paid be recorded as a transaction since or received with the signing of the lease. June 18 The loan V be recorded by the company as it is a V liability. June 28 to The withdrawal should be recorded at since the withdrawal relate to the business. The that John paid on the loan is the records of John Chang Plumbing as it is a transaction and, therefore, be recorded by the company. June 30 John must the value of the shop equipment. Accountants assume that the dollar's purchasing power is Transactions x June 1 John's brother retired and sold his equipment to John for $30,000. The equipment had cost $50,000 and had a replacement cost of $38,000. 3 The business did some plumbing repairs for a customer. The business would normally have charged $1,500 for the work, but had agreed to do it for $1,000 cash in order to encourage more business from the customer. 10 The business signed a lease to rent additional shop space for the business at a cost of $3,000 per month. The business will occupy the premises effective July 1, 2019. 18 Finding he was low on cash, John went to the bank and borrowed $8,000 on a personal loan. 28 John withdrew $12,000 from the business and used $7,000 to repay the personal bank loan of June 18. 30 The accountant is preparing the financial statements. The value of the John's equipment has increased to $35,000. John does not understand why accountants ignore the effect of inflation in the accounting records. Print Done