VI. Accounting Principles and Assumptions. Answer the following questions. Identify the accounting principles or assumptions that are applied, and briefly explain. (6%) IV. 1) 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? 2) 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? Adjusting accounts. (4%) 1) 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 (e) net income for the year ended December 31, 2021