James Company, a proprietorship, had the following selected business transactions during the year: (a) In each situation, identify whether the accounting treatment is correct, incorrect or partially correct. 1. Land with a cost of $415,000 was recorded at its fair value of $465,000. Alease agreement to rent equipment from an equipment supplier starting next year was signed. The rent is $500 per month and the lease is for two years. Payments are due at the start of each month. Nothing was recorded in James Company's accounting records when the lease was signed 3. James paid the rent for an apartment for the owner's personal use and charged it to Rent Expense. 4. James prepaid for a one-year insurance policy for $1.200. The amount was charged to Insurance Expense. 5. James included a note in its financial statements stating the company is a going concern. 6. James included a note in its financial statements stating the company is following ASPE. eps to forms of business E1.3 (LO2) Listed below are several statements regarding different forms of business organization Instructions For each statement indicate if that statement is true or false for each of the forms of business organization by placing a Tor an Fin each column. Publicly Traded Proprietorship Partnership Corporation a. Owners have limited liability, b. Records of the business are combined with the personal records of the owner or owners. e. Required to follow IFRS. d. Pays income taxes on its profits. e. Owners are called "shareholders." f. Will have more than one owner g. Has a limited life. h. Has a separate legal existence from its owners