Requirements:What is the entry to record the effect of this accounting change?cumulative effect of this accounting change = 98,000 15. On December 31, 20x2, Buckeye Corporation appropriatelychanged its inventory valuation method to FIFO cost fromAverage cost for both financial statement and income taxpurposes. The change will result in a P140,000 increase in thebeginning inventory at January 1, 20x2. Assume a 30% incometax rate.(Adapted)

Solution:- Calculation of Income tax rate :- Inventory = 1,40,000 Tax rate @ 30% So, 1,40,000*30% =…

Answered: Requirements: What is the entry to…

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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Joseph Bright lists the following transactions for the period ended 30 September 2017. Classify EACH item as follows: i. Write either capital or revenue in the expenditure type column to indicate the type of expenditure involved or EACH item. ii. Insert a-check mark (√) in the appropriate column to indicate whether the item is reported-in the Statement of profit or loss or in the Statement of financial position. The first one is done as an example. Description CLASSIFICATION OF EXPENDITURE Expenditure Type Statement where item should be reported Statement of Profit Statement of Example Wages of the computer operators 1 Cost of customizing software for use in business 2 Installing thief detection equipment 3 Cost of paper used for printing receipts during the year 4 Cost of toner used by the computer printer 5 Cost of adding extra memory to the compute or loss Revenue financial position
Prepare a template(table) that may be used for preparing an institution's estimate of expenditure (EOE)/expenditure estimates according to the prescribed standard chart of accounts. Note that the template does not have to contain any figures(amounts).
In year 2022, collection of interest income is credited to Interest Expense. What is the effect of the error in year 2022 revenue and expenses? a.Revenue - understated; expenses - overstated b.Revenue - overstated; expenses - overstated c.Revenue - understated; expenses - understated d.Revenue - overstated; expenses - understated
sales tax is collected from customers and paid to the a. board of equalization b. contract documents c. net profit for the year d. current and long term
(a) Describe the detail of the transaction being performed in the following screen. (b) Give the journal entry that MYOB made as a result of the transaction in part (a) (Note: account numbers are not required, just use account names.)
ccess the FASB Accounting Standards Codification at the FASB website (www.fasb.org).Required:1. Obtain the relevant authoritative literature on recognition of contingent losses. What is the specific citationthat describes the guidelines for determining when an expense and liability should be accrued for a contingentloss?2. List the guidelines.
In year 2022, collection of interest income is credited to Interest Expense. What is the effect of the error in year 2022 revenue and expenses? a. Revenue - understated; expenses - understated b. Revenue - overstated; expenses - overstated c. Revenue - understated; expenses - overstated d. Revenue - overstated; expenses - understated
Can you help me with the match terms, please? Thank u :) Modified retrospective approach Prospective approach and retrospective approach are the options
A revenue was earned in 2019 but payment is not received until 2020. Using the accrual basis of accounting, the revenue should appear on: A. the 2020 income statement B. the 2019 income statement C. both the 2019 and 2020 income statements D. neither the 2019 nor 2020 income statement
Choose the best accounting treatment for each of the following items. Change from straight-line to sum of the year's digits depreciation A. Change in reporting entity reported prospectively B. Change in estimate reported prospectively Change from adjusting the valuation allowance for deferred tax assets Change from individual to consolidated financial C. Correction of an error reported prospectively statement Change as a result of a failure to record depreciation in a prior period Change from cash basis to accrual basis of D. Change in accounting principle reported retrospectively E. Change in accounting principle reported prospectively accounting Change from completed contract to percent of F. Correction of an error reported retrospectively completion Change from FIFO to LIFO method for inventory G. Change in estimate reported retrospectively valuation Change in the realizability of accounts receivable H. Change in reporting entity reported retrospectively
Current GAAP requires a company to account for a change in accounting estimate that impacts multiple periods during
Deferred tax accounting adjustments are recorded at what point in time? a. At the end of each month b. At balance date c. As each transaction arises or is incurred d. As the cash flows from each transaction occur

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Requirements: What is the entry to record the effect of this accounting change? cumulative effect of this accounting change = 98,000