Blossom Inc., which uses a periodic system, changed from the weighted average cost formula to the FIFO cost formula in 2023. The increase in the prior year's income before tax as a result of this change is $229,000. The tax rate is 30%. Prepare Blossom's 2023 journal entry to record the change in accounting policy, assuming that the company's financial statements are reliable and more relevant as a result of the change. Assume that the 2023 year-end balance of inventory has not yet been recorded. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit

Blossom Inc., which uses a periodic system, changed from the weighted average cost formula to the FIFO cost formula in 2023. The increase in the prior year's income before tax as a result of this change is $229,000. The tax rate is 30%. Prepare Blossom's 2023 journal entry to record the change in accounting policy, assuming that the company's financial statements are reliable and more relevant as a result of the change. Assume that the 2023 year-end balance of inventory has not yet been recorded. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Income from Continuing Operations
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