Suppose you are considering the purchase of a building. The seller is asking

$250,000

for a building that cost her

$125,000.

An appraisal shows the building has a value of

$220,000.

You first offer

$205,000.

The seller counter offers with

$235,000.

Finally, you and the seller agree on a price of

$230,000.

What dollar amount for this building is reported on your financial statements? Which accounting assumption or principle guides your answer?

What dollar amount for this building is reported on your financial statements?

Using the information provided and the format below, analyze the effects of

Ling

Lawn Service's transactions on the accounting equation.

LOADING...

(Click the icon to view the transactions.)

(If a box is not used in the transaction, leave the box empty; do not enter a zero. Enter decreases with a minus sign or parentheses. Abbreviations used: exp. = expense; invest. = investment; rev. = revenue.)

Assets						=	Liabilities	+	Owner's Equity
			Accounts				Accounts		Ling,
	Cash	+	Receivable	+	Equipment	=	Payable	+	Capital	Explanation
Aug. 1		+		+		=		+

3

+

+

=

+

5

+

+

=

+

17

+

+

=

+

28

+

+

=

+

Which accounting assumption or principle guides your answer?

The accounting assumption or principle which guides the answer is

.