Question Details
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 2013. At December 31, 2012, inventories were
$119,000 (average cost basis) and were $123,000 a year earlier.
Cecil-BookerA????1s accountants determined that the inventories would
have totaled $153,000 at December 31, 2012, and $158,000 at
December 31, 2011, 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
$390,000 in 2012 and $515,000 in 2013. There were no extraordinary
items either year.
|
| Required: |
| 1. |
Prepare the journal entry to record the change in accounting
principle. (If no entry is required for a particular event,
select "No journal entry required" in the first account
field.)
|
| 2. |
Prepare the 2013A????12012 comparative income statements beginning
with income from continuing operations. Include per share amounts.
(Round EPS answers to 2 decimal places.)
|
rev: 08_08_2013_QC_33582
check my workreferencesebook & resources
A????12015 McGraw-Hill Education. All rights
reserved.
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DATE ANSWEREDDec 08, 2020
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