A footnote journal entry to record the change in the accounting method for inventory evaluation. Given Information: Tax rate is 40%. Cumulative cost of goods as per average cost method is $140,000. Cumulative cost of goods as per LIFO method would have been $300,000. Pre-tax income as per average method would have been $455,000. Pre-tax income as per LIFO method is $230,000.

Question

Want to see the full answer?

Answer 1

Question

Chapter 21, Problem 21.3BE

To determine

To prepare: A footnote journal entry to record the change in the accounting method for inventory evaluation.

Given Information:

Tax rate is 40%.

Cumulative cost of goods as per average cost method is $140,000.

Cumulative cost of goods as per LIFO method would have been $300,000.

Pre-tax income as per average method would have been $455,000.

Pre-tax income as per LIFO method is $230,000.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

General accounting question please solve

Hii, Tutor Give Answer

Q. GENERAL ACCOUNT

Answer 2

Question

Chapter 21, Problem 21.3BE

To determine

To prepare: A footnote journal entry to record the change in the accounting method for inventory evaluation.

Given Information:

Tax rate is 40%.

Cumulative cost of goods as per average cost method is $140,000.

Cumulative cost of goods as per LIFO method would have been $300,000.

Pre-tax income as per average method would have been $455,000.

Pre-tax income as per LIFO method is $230,000.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 21, Problem 21.3BE

To determine

To prepare: A footnote journal entry to record the change in the accounting method for inventory evaluation.

Given Information:

Tax rate is 40%.

Cumulative cost of goods as per average cost method is $140,000.

Cumulative cost of goods as per LIFO method would have been $300,000.

Pre-tax income as per average method would have been $455,000.

Pre-tax income as per LIFO method is $230,000.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 21, Problem 21.3BE

To determine

To prepare: A footnote journal entry to record the change in the accounting method for inventory evaluation.

Given Information:

Tax rate is 40%.

Cumulative cost of goods as per average cost method is $140,000.

Cumulative cost of goods as per LIFO method would have been $300,000.

Pre-tax income as per average method would have been $455,000.

Pre-tax income as per LIFO method is $230,000.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 21, Problem 21.3BE

To determine

To prepare: A footnote journal entry to record the change in the accounting method for inventory evaluation.

Given Information:

Tax rate is 40%.

Cumulative cost of goods as per average cost method is $140,000.

Cumulative cost of goods as per LIFO method would have been $300,000.

Pre-tax income as per average method would have been $455,000.

Pre-tax income as per LIFO method is $230,000.

Answer 6

Chapter 21, Problem 21.3BE

To determine

To prepare: A footnote journal entry to record the change in the accounting method for inventory evaluation.

Given Information:

Tax rate is 40%.

Cumulative cost of goods as per average cost method is $140,000.

Cumulative cost of goods as per LIFO method would have been $300,000.

Pre-tax income as per average method would have been $455,000.

Pre-tax income as per LIFO method is $230,000.

Answer 7

Chapter 21, Problem 21.3BE

To determine

To prepare: A footnote journal entry to record the change in the accounting method for inventory evaluation.

Given Information:

Tax rate is 40%.

Cumulative cost of goods as per average cost method is $140,000.

Cumulative cost of goods as per LIFO method would have been $300,000.

Pre-tax income as per average method would have been $455,000.

Pre-tax income as per LIFO method is $230,000.

Answer 8

Expert Solution & Answer

Answer 9

Expert Solution & Answer

Answer 10

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 11

Ch. 21 - Are accounting changes permitted in financial...Ch. 21 - How do firms report accounting changes under the...Ch. 21 - Prob. 21.3Q Ch. 21 - How do firms account for changes in accounting...Ch. 21 - Prob. 21.5Q Ch. 21 - Prob. 21.6Q Ch. 21 - Prob. 21.7Q Ch. 21 - Prob. 21.8Q Ch. 21 - Do accounting errors that self-correct within two...Ch. 21 - Does a firm need to correct an error that...

Solution Summary: The author describes journalizing as the process of recording the transactions of an organization in a chronological order.

Want to see the full answer?

Chapter 21 Solutions