received Question 1 (10 marks) Select the assumption, principle, or constraint that most appropriately justifies these procedures and practices. (Do not use qualitative characteristics.) 1. Fair value changes are not recognized in the accounting records. 2. Accounts receivable are recorded for sales on account rather than waiting until cash is 3. Financial information is presented so that investors will not be misled. 4. Intangible assets are capitalized and amortized over periods benefited. 5. Brokerage companies use fair value for purposes of valuing financial securities. 6. Each enterprise is kept as a unit distinct from its owner or owners. 7. All significant post-statement of financial position events are reported. 8. Revenue is recorded at point of sale. 9. All important aspects of bond indentures are presented in financial statements, 10. Rationale for accrual accounting, Question 2 (8 marks) William Bryant is the new owner of Ace Computer Services. At the end of August 2022, his first month of ownership. Bryant is trying to prepare monthly financial statements. Below is information related to unrecorded expenses that the business incurred during August 1. At August 31, Bryant owed his employees $2,900 in salaries and wages that will be paid on September 1 2. At the end of the month, he had not yet received the month's utility bill. Based on past experience, he estimated the bill would be approximately 600, 3. On August 1, Bryant borrowed $60,000 from a local bank on a 15-year mortgage. The annual interest rate is 8% 4. A telephone bill in the amount of S117 covering August charges is unpaid at August 31 (use Telephone and Internet Expense account) Required: Prepare the adjusting journal entries as of August 31, 2022, suggested by the information provided. 1