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points) Matching The hem ents below refer to principles ass shelow refer to principles, assumptions, characteristics, or constraints within accounting as this course. In the

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points) Matching The hem ents below refer to principles ass shelow refer to principles, assumptions, characteristics, or constraints within accounting as this course. In the following space provided, please write the corresponding letter of GAAP that the transaction that is described. A letter can be used more than once. If GAAP has been violated mario, indicate the scenario number in the space provided below. A Matching Principle B. Materiality C Industry Practice D. Time Period (Periodicity) E. Historical Cost F. Revenue Recognition G. Separate Entity H. Conservatism 1. Johnny's Lawn Service cut my grass on Monday, November 1". Since I was not home, he left the bill on my door. When he returned home that evening, he made an entry on his books to record the receivable. 2. Payton, President of Puppies R'Us, Inc. decides to purchase a $2,000 computer for her niece who is starting high school this year. She pays for this out of the company checking account and records the following journal entry: Debit: Equipment $2,000 and Credit: Cash $2,000. 3. Office Surplus Company, a paper and office supply distributor, produces financial statements each month. 4. Michael Scott Paper Company is being sued for $10,000, and his attorneys believe it is probable that Michael will lose this court case and have to pay the full $10,000. Although there has not been a verdict yet, Michael records the following journal entry: Debit: Litigation loss expense $10,000 and Credit: Litigation Payable $10,000. 5. Barbour's Bike Shop purchases an external hard drive for their computer system, at a cost of $25. Barbour's Bike Shop decides to expense this item rather than record it as equipment (an asset), due to the small amount of the purchase. 6. Mel's Hot Dogs decides to purchase some new fryers and other kitchen equipment from a restaurant supplier that is going out of business. The list price for the equipment is $4,000, but Mel is able to purchase it on sale for $3,000. He records the transaction on his books as follows: Debit: Equipment $3,000 and Credit: Cash $3,000. 7. ESPN recognizes revenue for NFL programming evenly throughout the year rather than when an NFL game is aired, which is acceptable under GAAP for television programming. (DO NOT se revenue recognition). 8. Julianna's Flower Shop purchased its land and building on Columbus Avenue in 1975, for a cost of $50,000, although today it is estimated to be worth $7,500,000. She decides to show the increase of the fair market value in the building by recording the following entry: Debit: Building $7,450,000 and Credit: Gain on building appreciation: $7,450,000. of these scenarios, which ones were violations of GAAP

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