June 1 Cost principle The equipment should be recorded at its purchase price to John, not at its original cost to his brother or at its replacement cost. Part 2 June 3 Reliability characteristic The work should be recorded at the amount charged as the cash received is the only objective evidence of what the work was worth. Part 3 June 10 Cost principle This event should not be recorded as a transaction since no cost was paid or received with the signing of the lease. Part 4 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.