Chapter 22 Homework - C hapter 22: Accounting Changes and...

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Tiffany Watt Homework April 11, 2011 AC 302 – 01 Exercises E22-4 a) 2004 Retained earnings, January 1, as reported $160,00 0 Add: Adjustment for the cumulative effect on prior years of applying retrospectively the new method of accounting for inventory (15,000) a Retained earnings, January 1, as adjusted $145,00 0 b) 2007 Retained earnings, January 1, as reported $590,00 0 Add: Adjustment for the cumulative effect on prior years of applying retrospectively the new method of accounting for inventory (25,000) b Retained earnings, January 1, as adjusted $565,00 0 c) 2008 Retained earnings, January 1, as reported $160,00 0 Add: Adjustment for the cumulative effect on prior years of applying retrospectively the new method of accounting for inventory (20,000) c Retained earnings, January 1, as adjusted $760,00 0 d) Net income for 2007 will be $310,000 under the new method. a
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This note was uploaded on 09/01/2011 for the course BUSINESS 101 taught by Professor - during the Spring '11 term at Mississippi Valley State University.

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Chapter 22 Homework - C hapter 22: Accounting Changes and...

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