VI$.$ Accounting Principles and Assumptions. Answer the following questions. Identify the

accounting principles or assumptions that are applied, and briefly explain. $(6\%)$

On December $1,$ Spring, a sole trader, extended an offer of $$400,000$ for land that had been

priced for sale at $$500,000.$ Two weeks later, Spring accepted the seller's counteroffer of

$$450,000.$ On December $20,$ the land was assessed at a value of $$300,000$ for property tax

purposes. On December $28,$ a national retail chain offered Spring $$520,000$ for the land. At

what value should the land be recorded in Spring's accounting records?

On December $18,2021,$ Summer plc signed a $$50,000$ contract with a client to provide

legal services in the following year. In which year should the legal fees revenue be recorded?

IV$.$ Adjusting accounts. $(4\%)$

For the year ending December $31,2021,$ Autumn Co$.$ mistakenly omitted adjusting entries for $(1)$ $$8,000$

of unearned revenue that was earned, $(2)$ earned revenue of $$12,500$ that was not billed, and $(3)$ accrued

wages of $$2,800.$ Indicate the combined effect of the errors on $($a$)$ revenues, $($b$)$ expenses, and $($c$)$ net

income for the year ended December $31,2021.$

V$.$ A company reported the following purchases and sales of its only product. The company

uses a perpetual inventory system. Determine the cost assigned to cost of goods sold using

FIFO. $(5\%)$

VI$.$ A company uses the percent of sales method of accounting for uncollectible accounts

receivable. During the current year, the following transactions occurred:

Sept $7$ The company determined that the $$8,100$ account receivable of the Helena Company

was uncollectible, and wrote it off.

Oct $15$ The company determined that the $$2,500$ account receivable of the Tree Company

was uncollectible and wrote it off.

Nov $9$ Helena Company paid $$6,000$ of the amount owed to the company. The company

does not expect further collections from the Helena Company.

Dec $31$ Connecting Company estimates that $0\mathrm{.}5\%$ of its $$1,900,000$ of credit sales would be

uncollectible.

Required: Prepare the general journal entries to record these transactions. $(10\%)$