
Concept Introduction:
Prior period adjustments:
Prior period adjustment refers to the adjustment of previous years errors in the current year’s financial statement. The financial statement of the current discloses the proper period adjustments as a separate item.
Change in an estimate:
Change in estimate requires an accounting adjustment in the current year’s financial statement and for future accounting periods. For example change in the estimated life of a
Requirement-1:
To discuss: The adjustment of previous year’s mistake in recording the notes payable installments.
Requirement-2:
To discuss: The adjustment for change in the estimated life of the depreciable asset

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Chapter 13 Solutions
Connect 2-Semester Access Card for Fundamental Accounting Principles
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