Change in inventory methods: Change in inventory method is said to be the difference between the previous years ending inventory and the current years ending inventory. First In First Out (FIFO) Under the FIFO method, the inventory bought first is used or transferred out first. Last In First Out (LIFO) Under the LIFO method, the inventory bought later is used or transferred out first To Journalize : The entry at the beginning of 2016 to record the change in accounting principle of F Company.

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Answer 1

Question

Chapter 20, Problem 20.8E

(1)

To determine

Change in inventory methods:

Change in inventory method is said to be the difference between the previous years ending inventory and the current years ending inventory.

First In First Out (FIFO)

Under the FIFO method, the inventory bought first is used or transferred out first.

Last In First Out (LIFO)

Under the LIFO method, the inventory bought later is used or transferred out first

To Journalize: The entry at the beginning of 2016 to record the change in accounting principle of F Company.

(2)

To determine

To Describe: The Steps that F Company should take to report the change.

(3)

To determine

To Describe: The amounts reported by F Company for net income in its 2016–2014 comparative income statements.

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Answer 2

Question

Chapter 20, Problem 20.8E

(1)

To determine

Change in inventory methods:

Change in inventory method is said to be the difference between the previous years ending inventory and the current years ending inventory.

First In First Out (FIFO)

Under the FIFO method, the inventory bought first is used or transferred out first.

Last In First Out (LIFO)

Under the LIFO method, the inventory bought later is used or transferred out first

To Journalize: The entry at the beginning of 2016 to record the change in accounting principle of F Company.

(2)

To determine

To Describe: The Steps that F Company should take to report the change.

(3)

To determine

To Describe: The amounts reported by F Company for net income in its 2016–2014 comparative income statements.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 20, Problem 20.8E

(1)

To determine

Change in inventory methods:

Change in inventory method is said to be the difference between the previous years ending inventory and the current years ending inventory.

First In First Out (FIFO)

Under the FIFO method, the inventory bought first is used or transferred out first.

Last In First Out (LIFO)

Under the LIFO method, the inventory bought later is used or transferred out first

To Journalize: The entry at the beginning of 2016 to record the change in accounting principle of F Company.

(2)

To determine

To Describe: The Steps that F Company should take to report the change.

(3)

To determine

To Describe: The amounts reported by F Company for net income in its 2016–2014 comparative income statements.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 20, Problem 20.8E

(1)

To determine

Change in inventory methods:

Change in inventory method is said to be the difference between the previous years ending inventory and the current years ending inventory.

First In First Out (FIFO)

Under the FIFO method, the inventory bought first is used or transferred out first.

Last In First Out (LIFO)

Under the LIFO method, the inventory bought later is used or transferred out first

To Journalize: The entry at the beginning of 2016 to record the change in accounting principle of F Company.

(2)

To determine

To Describe: The Steps that F Company should take to report the change.

(3)

To determine

To Describe: The amounts reported by F Company for net income in its 2016–2014 comparative income statements.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 20, Problem 20.8E

(1)

To determine

Change in inventory methods:

Change in inventory method is said to be the difference between the previous years ending inventory and the current years ending inventory.

First In First Out (FIFO)

Under the FIFO method, the inventory bought first is used or transferred out first.

Last In First Out (LIFO)

Under the LIFO method, the inventory bought later is used or transferred out first

To Journalize: The entry at the beginning of 2016 to record the change in accounting principle of F Company.

(2)

To determine

To Describe: The Steps that F Company should take to report the change.

(3)

To determine

To Describe: The amounts reported by F Company for net income in its 2016–2014 comparative income statements.

Answer 6

Chapter 20, Problem 20.8E

(1)

To determine

Change in inventory methods:

Change in inventory method is said to be the difference between the previous years ending inventory and the current years ending inventory.

First In First Out (FIFO)

Under the FIFO method, the inventory bought first is used or transferred out first.

Last In First Out (LIFO)

Under the LIFO method, the inventory bought later is used or transferred out first

To Journalize: The entry at the beginning of 2016 to record the change in accounting principle of F Company.

Answer 7

Chapter 20, Problem 20.8E

(1)

To determine

Change in inventory methods:

Change in inventory method is said to be the difference between the previous years ending inventory and the current years ending inventory.

First In First Out (FIFO)

Under the FIFO method, the inventory bought first is used or transferred out first.

Last In First Out (LIFO)

Under the LIFO method, the inventory bought later is used or transferred out first

To Journalize: The entry at the beginning of 2016 to record the change in accounting principle of F Company.

Answer 8

(2)

To determine

To Describe: The Steps that F Company should take to report the change.

Answer 9

(2)

To determine

To Describe: The Steps that F Company should take to report the change.

Answer 10

(3)

To determine

To Describe: The amounts reported by F Company for net income in its 2016–2014 comparative income statements.

Answer 11

(3)

To determine

To Describe: The amounts reported by F Company for net income in its 2016–2014 comparative income statements.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 20 - Prob. 20.1Q Ch. 20 - Prob. 20.2Q Ch. 20 - Prob. 20.3Q Ch. 20 - Lynch Corporation changes from the...Ch. 20 - Prob. 20.5Q Ch. 20 - Most changes in accounting principles are recorded...Ch. 20 - Prob. 20.7Q Ch. 20 - Prob. 20.8Q Ch. 20 - Its not easy sometimes to distinguish between a...Ch. 20 - For financial reporting, a reporting entity can be...

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To Describe: The Steps that F Company should take to report the change.

To Describe: The amounts reported by F Company for net income in its 2016–2014 comparative income statements.

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