Intermediate Accounting, Student Value Edition (2nd Edition)
Intermediate Accounting, Student Value Edition (2nd Edition)
2nd Edition
ISBN: 9780134732145
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Chapter 21, Problem 21.5BE

Change in Accounting Principle, Long-Term Construction Contracts. Cole Construction Company elected to change its method of accounting from the completed-contract method to the percentage-of- completion method. Prior-years income (cumulative) would have been $550,000 higher if Cole had always used the percentage-of-completion method. The company is subject to a 35% tax rate Prepare the journal entry to record the change in method.

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Accounting Changes and Error Analysis: Intermediate Accounting Chapter 22; Author: Finally Learn;https://www.youtube.com/watch?v=c2uQdN53MV4;License: Standard Youtube License