Chapter 22 part 1 - BE 2 400 BE 3 Inventory 1,200,000...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
2) a) Change in inventory valuation accounting principle. b) Correction of the error and prior period adjustment. c) Increase in litigation d) Change in revenues estimated. e) expenses f) change in net income accounting principle reporting. 8) a) expense recognition b) change in depreciation because of a change in accounting method c) expense d) change in accounting methods e) change in accounting methods f) change in estimate 9) The retained earnings would be different in the 2007 financial statements. The necessary adjustments 18) 31-Dec Machinery 6000 acc depre 600 retained earnings 5400 depreciation expense 1350 accu depreciation machi 1350 20) This error would give a wrong net income because of failure to record the purchase. They should reco BE 1) construction in process 40,000 deferrec tax liability 14000 retained earnings 26,000
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: BE 2) 400 BE 3) Inventory 1,200,000 Deferred tax liability 480000 retained earnings 720,000 BE 4) depreciation expense 15,000 Chapter 22 Part 1 Homework-complete questions 2,8,9,18,20; Brief Exercises 1,2,3,4,5,8,9,10,11,12; accu depreciation 15,000 BE 5) Depreciation expense 24000 accum depreciation 24000 BE 9) 1. Change is estimate because they are estimating new life for their product 2. error 3. change in estimate because of the change in expensing reproduction costs. Be10) 1. FIFO, LIFO are GAAP, so change in accouting principle 2. Error 3. change in accounting principles BE11) Cash 9,500 available for sale securities 1,500 divident revenue 8,000 s should be made to correct the errors. ord it as a debit the purchase account and credit the accounts payable....
View Full Document

Page1 / 4

Chapter 22 part 1 - BE 2 400 BE 3 Inventory 1,200,000...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online