Solutions to Acct Changes & Restatements Practice Problems

Solutions to Acct Changes & Restatements Practice Problems

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Accounting Changes and Restatements EXERCISE 22-2 (10–15 minutes) (a) Inventory . ................................................................... 11,000* Retained Earnings . ............................................ 11,000 *($19,000 + $21,000 + $25,000) – ($16,000 + $18,000 + $20,000) (b) Net Income (FIFO) 2009 $19,000 2010 21,000 2011 25,000 (c) Inventory . .................................................................. 22,000* Retained Earnings . ........................................... 22,000 *($19,000 + $21,000 + $25,000) – ($12,000 + $14,000 + $17,000) EXERCISE 22-4 (25–30 minutes) (a) Retained earnings, January 1, as reported . ............... $160,000 2008 Cumulative effect of change in accounting principle to average cost . ......................................... (13,000 Retained earnings, January 1, as adjusted . ............... $147,000 )* *[$8,000 (2006) + $5,000 (2007)] (b) Retained earnings, January 1, as reported . ............... $590,000 2011 Cumulative effect of change in accounting
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This note was uploaded on 11/05/2011 for the course ACCT 401 taught by Professor Winchel during the Spring '10 term at South Carolina.

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Solutions to Acct Changes & Restatements Practice Problems

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