Problem $1-6$B $($Static$)$ Identify underlying assumptions of GAAP $($LO$1-7)$

The four underlying assumptions of generally accepted accounting principles are economic entity, monetary unit, periodicity, and going concern. Consider the following four independent situations.

Mound Builders Groceries has over $1,000$ grocery stores throughout the Northwest. Approximately $200,000$ customers visit its stores each day. Because of the continual nature of grocery sales, the company does not publish an income statement. The company feels that it has an indefinite life, and a periodic report would mislead investors.

Trolls Shipping provides delivery of packages between the United States and Japan. During the current year, the company delivered $3,000$ packages for its U$.$S$.$ customers totaling $$25,000$ in revenue. For its Japanese customers, the company delivered $1,000$ packages totaling $1,000,000($yen$).$ The company$$s income statement indicates that total revenue equals $4,000$ packages delivered with no corresponding amount in the income statement.

Slugs Typewriter has provided some of the finest typewriters in town for the past $50$ years. Because of the advance of electronic word processors and computers, customer demand has dwindled over the years to almost nothing in the current year, and the company can no longer pay its debts. For the most recent year, the company reports its assets in the balance sheet at historical $($original$)$ cost$.$

Blue Hose Carpet specializes in the installation of carpet and wood flooring. The company has the usual business expenses: salaries, supplies, utilities, advertising, and taxes. John Brewer, the company's owner, took his wife and two daughters to Disney World. John reported the airfare and hotel expenses in the income statement of Blue Hose Carpet

Required:

For each situation, select which of the underlying assumptions of GAAP is violated.

$\backslash$table$[[$Situation$,$Assumption Violated$],[1.,],[2.,],[3.,],[4.,]]$