Homework Answers
(a) -- What is the beginning retained earnings balance at January 1, 2014, if Gordon prepares comparative financial statements starting in 2014 ?
Answer -
| For Year 2014 | ||
| Calculations ($) | Amount ($) | |
| Retained earnings, January 1, as Reported | Given in the question | 160000 |
| Cumulative effect of change in accounting principle to average cost (2012 and 2013) |
[(100000-90000) + (70000-65000)] | (15000) |
| Retained earnings, January 1, as Adjusted | [160000-15000] | 145000 |
.
(b) -- What is the beginning retained earnings balance at January 1, 2017, if Gordon prepares comparative financial statements starting in 2017 ?
Answer -
| For Year 2017 | ||
| Calculations ($) | Amount ($) | |
| Retained earnings, January 1, as Reported | Given in the question | 590000 |
| Cumulative effect of change in accounting principle to average cost (2012 to 2016) | [(100000-90000) + (70000-65000) + (90000-80000) +(120000-130000) + (300000-290000)] | (25000) |
| Retained earnings, January 1, as Adjusted | [590000-25000] | 565000 |
.
(c) -- What is the beginning retained earnings balance at January 1, 2018, if Gordon prepares single-period financial statements for 2018 ?
Answer -
| For Year 2018 | ||
| Calculations ($) | Amount ($) | |
| Retained earnings, January 1, as Reported | Given in the question | 780000 |
| Cumulative effect of change in accounting principle to average cost (2017) | [25000(at 12/31/2016)] + [305000-310000] | (20000) |
| Retained earnings, January 1, as Adjusted | [780000-20000] | 760000 |
.
(d) -- What is the net income reported by Gordon in the 2017 income statement if it prepares comparative financial statements starting with 2015 ?
Answer -
| Year | Calculations / Remarks | Net Income ($) |
| 2015 | Given in the question | 130000 |
| 2016 | Given in the question | 290000 |
| 2017 | Given in the question | 310000 |
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E22-4 (101) (Accounting Change) Gordon Company started operations on January 1, 2012, and has used the...
please ASAP Gordon Company started operations on January 1, 2015, and has used the FIFO method...
please ASAP
Gordon Company started operations on January 1, 2015, and has used the FIFO method of in Net Income Linder FIFO Under Average-cost Retained Earnings (Ending Balance) der FIFO 2016 65.000 235,000 120,000 130.000 Spoo 110.000 (a) What is the beginning retained warrings wance muy 1 2017, Gordon prepares compar Ratained camninga, Puri I 145,000 (b) What is the beginning retained earnings balance at January 1, 2020. IT Gordon prepares comparative financial statens starting in 2020 Butained earnings, Ianuary...
signment CALCULATOR MESSAGE MY INSTRUCTOR FULL SCREEN PRINTER VERSION BACK NEXT Exercise 22-4 Ivanhoe Company started...
signment CALCULATOR MESSAGE MY INSTRUCTOR FULL SCREEN PRINTER VERSION BACK NEXT Exercise 22-4 Ivanhoe Company started operations on January 1, 2012, and has used the FIFO method of inventory valuation since its inception. In 2018, it decides to switch to the average-cost method. You are provided with the following information. Retained Earnings (Ending Balance) nder FIFO $93.900 57.800 2012 2013 2014 2015 2016 2017 Net Income Under FIFO Under Average Cost $99,300 $89,000 75,900 71,400 81,400 70,600 122,100 132,500 323,400...
E22-9 (し02.3) (Change in Estimate and Error; Financial Statements) Presented below are the comparative income and retained earnings statements for Denise Habbe Inc. for the years 2017 and 2018 2018...
E22-9 (し02.3) (Change in Estimate and Error; Financial Statements) Presented below are the comparative income and retained earnings statements for Denise Habbe Inc. for the years 2017 and 2018 2018 $340,000 200,000 140,000 88,000 $ 52,000 2017 $270,000 142,000 128,000 50,000 $78,000 $ 72,000 78,000 (25,000) $125,000 Sales Cost of sales Gross profit Expenses Net income Retained earnings (Jan. 1) Net income Dividends $125,000 52,000 (30,000) $147,000 Retained earnings (Dec. 31) The following additional information is provided 1. In 2018,...
AC 313 During 2016 (its first year of operations) and 2017, Batali Foods used the FIFO...
AC
313
During 2016 (its first year of operations) and 2017, Batali Foods used the FIFO inventory costing method for both financial reporting and tax purposes. At the beginning of 2018, Batali decided to change to the average method for both financial reporting and tax purposes. points Income components before income tax for 2018, 2017 and 2016 were as follows ($ in millions): eBook Revenues Cost of goods sold (FIPO) cost of goods sold (average) Operating expenses 2018 $ 510...
Instructions Since Goode Oil Company was formed in 2015, it has used the full-cost method for...
Instructions Since Goode Oil Company was formed in 2015, it has used the full-cost method for financial reporting and recorded all exploration costs in an asset account called Oil and Gas Properties. At the beginning of 2017, it changes to the successful-efforts method. Goode previously had reported pretax income of $2,031,000 and $2,261,000 in 2015 and 2016, respectively. Analysis of the accounting records discloses that the company incurred the following exploration expenses based on the successful-efforts method: 2015 2016 Exploration...
Swifty Co. decides at the beginning of 2017 to adopt the FIFO method of inventory valuation. Swifty had used the LIFO method for financial reporting since its inception on January 1, 2015, and had mai...
Swifty Co. decides at the beginning of 2017 to adopt the FIFO method of inventory valuation. Swifty had used the LIFO method for financial reporting since its inception on January 1, 2015, and had maintained records adequate to apply the FIFO method retrospectively. Swifty concluded that FIFO is the preferable inventory method because it reflects the current cost of inventory on the balance sheet. The following table presents the effects of the change in accounting principles on inventory and cost...
During 2016 (its first year of operations) and 2017, Batali Foods used the FIFO inventory costing...
During 2016 (its first year of operations) and 2017, Batali Foods used the FIFO inventory costing method for both financial reporting and tax purposes. At the beginning of 2018, Batali decided to change to the average method for both financial reporting and tax purposes. Income components before income tax for 2018, 2017, and 2016 were as follows ($ in millions): 2018 2017 2016 Revenues $ 500 $ 470 $ 460 Cost of goods sold (FIFO) (54 ) (48 ) (46...
During 2016 (ts first year of operations) and 2017, Batali Foods used the FIFO inventory costing...
During 2016 (ts first year of operations) and 2017, Batali Foods used the FIFO inventory costing method for both financial reporting and tax purposes. At the beginning of 2018, Batali decided to change to the average method for both financial reporting and tax purposes. Income components before income tax for 2018, 2017, and 2016 were as follows (S in millions) 2018 20172016 $ 570 $540 $ 530 (61) (55) (53) (92) (86)(82) (314) (310) (302) Revenues Cost of goods sold...
Using information related to E22-1 (page 1308), please: a. Prepare journal entry to record the change...
Using information related to E22-1 (page 1308), please: a. Prepare journal entry to record the change at the beginning of 2018 (see page 1271) b. Present partial income statement for the years 2017 and 2018 (see author's illustration 22-3, pag. 1273). c. Prepare Retained Earnings Statement, assuming that the retained earnings beginning balance as of January 1 2017 is $2,000,000 (see illustration 22-5. pag. 1274) E22-1 (L01) (Change in Principle-Long-Term Contracts) Pam Erickson Construction Company changed from the com- pleted-contract...
During 2016 (its first year of operations) and 2017, Batali Foods used the FIFO inventory costing method for both financ...
During 2016 (its first year of operations) and 2017, Batali Foods used the FIFO inventory costing method for both financial reporting and tax purposes. At the beginning of 2018, Batali decided to change to the average method for both financial reporting and tax purposes. Income components before income tax for 2018, 2017, and 2016 were as follows ($ in millions): 2018 2017 2016 Revenues $ 570 $ 540 $ 530 Cost of goods sold (FIFO) (61 ) (55 ) (53...
please ASAP
Gordon Company started operations on January 1, 2015, and has used the FIFO method of in Net Income Linder FIFO Under Average-cost Retained Earnings (Ending Balance) der FIFO 2016 65.000 235,000 120,000 130.000 Spoo 110.000 (a) What is the beginning retained warrings wance muy 1 2017, Gordon prepares compar Ratained camninga, Puri I 145,000 (b) What is the beginning retained earnings balance at January 1, 2020. IT Gordon prepares comparative financial statens starting in 2020 Butained earnings, Ianuary...
signment CALCULATOR MESSAGE MY INSTRUCTOR FULL SCREEN PRINTER VERSION BACK NEXT Exercise 22-4 Ivanhoe Company started operations on January 1, 2012, and has used the FIFO method of inventory valuation since its inception. In 2018, it decides to switch to the average-cost method. You are provided with the following information. Retained Earnings (Ending Balance) nder FIFO $93.900 57.800 2012 2013 2014 2015 2016 2017 Net Income Under FIFO Under Average Cost $99,300 $89,000 75,900 71,400 81,400 70,600 122,100 132,500 323,400...
E22-9 (し02.3) (Change in Estimate and Error; Financial Statements) Presented below are the comparative income and retained earnings statements for Denise Habbe Inc. for the years 2017 and 2018 2018 $340,000 200,000 140,000 88,000 $ 52,000 2017 $270,000 142,000 128,000 50,000 $78,000 $ 72,000 78,000 (25,000) $125,000 Sales Cost of sales Gross profit Expenses Net income Retained earnings (Jan. 1) Net income Dividends $125,000 52,000 (30,000) $147,000 Retained earnings (Dec. 31) The following additional information is provided 1. In 2018,...
AC
313
During 2016 (its first year of operations) and 2017, Batali Foods used the FIFO inventory costing method for both financial reporting and tax purposes. At the beginning of 2018, Batali decided to change to the average method for both financial reporting and tax purposes. points Income components before income tax for 2018, 2017 and 2016 were as follows ($ in millions): eBook Revenues Cost of goods sold (FIPO) cost of goods sold (average) Operating expenses 2018 $ 510...
Instructions Since Goode Oil Company was formed in 2015, it has used the full-cost method for financial reporting and recorded all exploration costs in an asset account called Oil and Gas Properties. At the beginning of 2017, it changes to the successful-efforts method. Goode previously had reported pretax income of $2,031,000 and $2,261,000 in 2015 and 2016, respectively. Analysis of the accounting records discloses that the company incurred the following exploration expenses based on the successful-efforts method: 2015 2016 Exploration...
During 2016 (ts first year of operations) and 2017, Batali Foods used the FIFO inventory costing method for both financial reporting and tax purposes. At the beginning of 2018, Batali decided to change to the average method for both financial reporting and tax purposes. Income components before income tax for 2018, 2017, and 2016 were as follows (S in millions) 2018 20172016 $ 570 $540 $ 530 (61) (55) (53) (92) (86)(82) (314) (310) (302) Revenues Cost of goods sold...
Using information related to E22-1 (page 1308), please: a. Prepare journal entry to record the change at the beginning of 2018 (see page 1271) b. Present partial income statement for the years 2017 and 2018 (see author's illustration 22-3, pag. 1273). c. Prepare Retained Earnings Statement, assuming that the retained earnings beginning balance as of January 1 2017 is $2,000,000 (see illustration 22-5. pag. 1274) E22-1 (L01) (Change in Principle-Long-Term Contracts) Pam Erickson Construction Company changed from the com- pleted-contract...
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