https://newconnect.mheducation.com/flow/connect.html xam Chapters 19 and 20 6 Sa
ID: 2395327 • Letter: H
Question
https://newconnect.mheducation.com/flow/connect.html xam Chapters 19 and 20 6 Saved Help Save & Exit Submit The Cecil-Booker Vending Company changed its method of valuing inventory from the average cost method to the FIFO cost method at the beginning of 2018. At December 31, 2017, inventories were $117,000 (average cost basis) and weré $121,000 a year earlier. Cecil-Booker's accountants determined that the inventories would have totaled $149,000 at December 31, 2017, and $154,000 at December 31, 2016, if determined on a FIFO basis. A tax rate of 40% is in effect for all years. One hundred thousand common shares were outstanding each year. Income from continuing operations was $370,000 in 2017 and $495,000 in 2018. There were no discontinued operations either year Required: 1. Prepare the journal entry to record the change in accounting principle. 2. Prepare the 2018-2017 comparative income statements beginning with income from continuing operations. Include per share amounts. Complete this question by entering your answers in the tabs below. Required 1Required 2 Pre 22 of Next Ca 6/EExplanation / Answer
Requirement 1:
Workings:
Requirement 2:
Workings:
Dear Student,
Best effort has been made to give quality and correct answer. But if you find any issues please comment your concern. I will definitely resolve your query.
Date Account Description Debit Credit 1-Jan-18 Inventory $ 32,000 Deferred Tax Liability $ 12,800 Retained Earnings $ 19,200 (Being entry for recording method of Inventory Changed)Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.