The Cecil-Booker Vending Company changed its method of valuing inventory from the...
50.1K
Verified Solution
Link Copied!
Question
Accounting
The CecilBooker Vending Company changed its method of valuing inventory from the average cost method to the FIFO cost method at the beginning of At December inventories were $average cost basis and were $ a year earlier. CecilBookers accountants determined that the inventories would have totaled $ at December and $ at December if determined on a FIFO basis. A tax rate of is in effect for all years.
One hundred thousand common shares were outstanding each year. Income from continuing operations was $ in and $ in There were no discontinued operations either year.
Required:
Prepare the journal entry at January to record the change in accounting principle. All tax effects should be reflected in the deferred tax liability account.
Prepare the comparative income statements beginning with income from continuing operations adjusted for any revisions Include per share amounts.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
