+ II 立 LE x v-V40ZDZ - ajnpaya O Connect A https://ezto.mheducation.com/ext/map/index.html?_con%3con&external_browser%3D0&launchUrl=https%253A%252F%252Fnew... Chapter 20 Homework penes Help Problem 20-1 (Algo) Change in inventory costing methods; comparative income statements [LO20-2] 3. The Cecil-Booker Vending Company changed its method of valuing inventory from the average cost method to the FIFO cost method at the beginning of 2021. At December 31, 2020, inventories were $119,000 (average cost basis) and were $123,000 a year earlier. Cecil-Bookers accountants determined that the inventories would have totaled $153,000 at December 31, 2020, and $158,000 at December 31, 2019, if determined on a FIFO basis. A tax rate of 25% is in effect for all years. 25 polnts Skipped One hundred thousand common shares were outstanding each year. Income from continuing operations was $390,000 in 2020 and %24515,000 in 2021. There were no discontinued operations either year. eBook Print Required: 1. Prepare the journal entry at January 1, 2021, to record the change in accounting principle. (All tax effects should be reflected in the deferred tax liability account.) 2. Prepare the 2021-2020 comparative income statements beginning with income from continuing operations (adjusted for any revisions). Include per share amounts. References Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entry at January 1, 2021, to record the change in accounting principle. (All tax effects should be reflected in the deferred tax liability account.) (If no entry is required for a transaction/event, select "No journal entry required" in the first account ! + jo E P Type here to search +Do 冒回 F10 PriSc Ins F11 F12 & #3 2. 4. 9.
+ II 立 LE x v-V40ZDZ - ajnpaya O Connect A https://ezto.mheducation.com/ext/map/index.html?_con%3con&external_browser%3D0&launchUrl=https%253A%252F%252Fnew... Chapter 20 Homework penes Help Problem 20-1 (Algo) Change in inventory costing methods; comparative income statements [LO20-2] 3. The Cecil-Booker Vending Company changed its method of valuing inventory from the average cost method to the FIFO cost method at the beginning of 2021. At December 31, 2020, inventories were $119,000 (average cost basis) and were $123,000 a year earlier. Cecil-Bookers accountants determined that the inventories would have totaled $153,000 at December 31, 2020, and $158,000 at December 31, 2019, if determined on a FIFO basis. A tax rate of 25% is in effect for all years. 25 polnts Skipped One hundred thousand common shares were outstanding each year. Income from continuing operations was $390,000 in 2020 and %24515,000 in 2021. There were no discontinued operations either year. eBook Print Required: 1. Prepare the journal entry at January 1, 2021, to record the change in accounting principle. (All tax effects should be reflected in the deferred tax liability account.) 2. Prepare the 2021-2020 comparative income statements beginning with income from continuing operations (adjusted for any revisions). Include per share amounts. References Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entry at January 1, 2021, to record the change in accounting principle. (All tax effects should be reflected in the deferred tax liability account.) (If no entry is required for a transaction/event, select "No journal entry required" in the first account ! + jo E P Type here to search +Do 冒回 F10 PriSc Ins F11 F12 & #3 2. 4. 9.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![+ II
立
LE
x v-V40ZDZ - ajnpaya
O Connect
A https://ezto.mheducation.com/ext/map/index.html?_con%3con&external_browser%3D0&launchUrl=https%253A%252F%252Fnew...
Chapter 20 Homework
penes
Help
Problem 20-1 (Algo) Change in inventory costing methods; comparative income statements [LO20-2]
3.
The Cecil-Booker Vending Company changed its method of valuing inventory from the average cost method to the FIFO cost method
at the beginning of 2021. At December 31, 2020, inventories were $119,000 (average cost basis) and were $123,000 a year earlier.
Cecil-Bookers accountants determined that the inventories would have totaled $153,000 at December 31, 2020, and $158,000 at
December 31, 2019, if determined on a FIFO basis. A tax rate of 25% is in effect for all years.
25
polnts
Skipped
One hundred thousand common shares were outstanding each year. Income from continuing operations was $390,000 in 2020 and
%24515,000 in 2021. There were no discontinued operations either year.
eBook
Print
Required:
1. Prepare the journal entry at January 1, 2021, to record the change in accounting principle. (All tax effects should be reflected in the
deferred tax liability account.)
2. Prepare the 2021-2020 comparative income statements beginning with income from continuing operations (adjusted for any
revisions). Include per share amounts.
References
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Prepare the journal entry at January 1, 2021, to record the change in accounting principle. (All tax effects should be reflected in the
deferred tax liability account.) (If no entry is required for a transaction/event, select "No journal entry required" in the first account
! + jo E
P Type here to search
+Do
冒回
F10
PriSc
Ins
F11
F12
&
#3
2.
4.
9.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffedd1699-a592-40a0-b7cd-dbf84fb319d6%2Fa482a3b9-669a-4afe-9790-c13b0d7eec4a%2F1651234_processed.jpeg&w=3840&q=75)
Transcribed Image Text:+ II
立
LE
x v-V40ZDZ - ajnpaya
O Connect
A https://ezto.mheducation.com/ext/map/index.html?_con%3con&external_browser%3D0&launchUrl=https%253A%252F%252Fnew...
Chapter 20 Homework
penes
Help
Problem 20-1 (Algo) Change in inventory costing methods; comparative income statements [LO20-2]
3.
The Cecil-Booker Vending Company changed its method of valuing inventory from the average cost method to the FIFO cost method
at the beginning of 2021. At December 31, 2020, inventories were $119,000 (average cost basis) and were $123,000 a year earlier.
Cecil-Bookers accountants determined that the inventories would have totaled $153,000 at December 31, 2020, and $158,000 at
December 31, 2019, if determined on a FIFO basis. A tax rate of 25% is in effect for all years.
25
polnts
Skipped
One hundred thousand common shares were outstanding each year. Income from continuing operations was $390,000 in 2020 and
%24515,000 in 2021. There were no discontinued operations either year.
eBook
Print
Required:
1. Prepare the journal entry at January 1, 2021, to record the change in accounting principle. (All tax effects should be reflected in the
deferred tax liability account.)
2. Prepare the 2021-2020 comparative income statements beginning with income from continuing operations (adjusted for any
revisions). Include per share amounts.
References
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Prepare the journal entry at January 1, 2021, to record the change in accounting principle. (All tax effects should be reflected in the
deferred tax liability account.) (If no entry is required for a transaction/event, select "No journal entry required" in the first account
! + jo E
P Type here to search
+Do
冒回
F10
PriSc
Ins
F11
F12
&
#3
2.
4.
9.
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