9) Matador began doing business on January 1, 2018, using the Percentage of Completion to record construction revenues. During 2022, Matador changed to the Completed Contract Method to record construction revenues to be consistent with industry practice. The bookkeeper used the Completed Contract Method for recording construction revenues in 2022. Determine the adjustment to ICO. Matador has a corporate tax rate of 30%. The company compiled the following comparative data. 2018 2019 2020 2021 2022 Percentage of Completion Method $ 600,000 $545,500 $ 537,500 $512,500 $685,000 Completed Contract Method $387,500 $322,500 $385,000 $395,000 $415,000 10) Using the information in Question 9, determine the cumulative effect adjustment to Retained Earnings that Matador will recognize in the journal entry to record this accounting change. Matador has a corporate tax rate of 30%. 11) Matador reports 3 years of comparative financial statements (2022, 2021, and 2020). Using the information in Question 9, determine the cumulative effect adjustment to Retained Earnings that Matador will recognize in the comparative financial statements to record this accounting change. Matador has a corporate tax rate of 30%.
9) Matador began doing business on January 1, 2018, using the Percentage of Completion to record construction revenues. During 2022, Matador changed to the Completed Contract Method to record construction revenues to be consistent with industry practice. The bookkeeper used the Completed Contract Method for recording construction revenues in 2022. Determine the adjustment to ICO. Matador has a corporate tax rate of 30%. The company compiled the following comparative data. 2018 2019 2020 2021 2022 Percentage of Completion Method $ 600,000 $545,500 $ 537,500 $512,500 $685,000 Completed Contract Method $387,500 $322,500 $385,000 $395,000 $415,000 10) Using the information in Question 9, determine the cumulative effect adjustment to Retained Earnings that Matador will recognize in the journal entry to record this accounting change. Matador has a corporate tax rate of 30%. 11) Matador reports 3 years of comparative financial statements (2022, 2021, and 2020). Using the information in Question 9, determine the cumulative effect adjustment to Retained Earnings that Matador will recognize in the comparative financial statements to record this accounting change. Matador has a corporate tax rate of 30%.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:9) Matador began doing business on January 1, 2018, using the Percentage of Completion to
record construction revenues. During 2022, Matador changed to the Completed Contract
Method to record construction revenues to be consistent with industry practice. The
bookkeeper used the Completed Contract Method for recording construction revenues in
2022. Determine the adjustment to ICO. Matador has a corporate tax rate of 30%. The
company compiled the following comparative data.
2018
2019
2020
2021
2022
Percentage of
Completion
Method
$ 600,000
$545,500
$ 537,500
$512,500
$685,000
Completed
Contract
Method
$387,500
$322,500
$385,000
$395,000
$415,000
10) Using the information in Question 9, determine the cumulative effect adjustment to
Retained Earnings that Matador will recognize in the journal entry to record this
accounting change. Matador has a corporate tax rate of 30%.
11) Matador reports 3 years of comparative financial statements (2022, 2021, and 2020).
Using the information in Question 9, determine the cumulative effect adjustment to
Retained Earnings that Matador will recognize in the comparative financial statements
to record this accounting change. Matador has a corporate tax rate of 30%.
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