Intermediate Accounting
Intermediate Accounting
3rd Edition
ISBN: 9780136912644
Author: Elizabeth A. Gordon; Jana S. Raedy; Alexander J. Sannella
Publisher: Pearson Education (US)
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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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Dave Ryan is the CEO of Ryan's Arcade. At the end of its accounting period, December 31, Ryan's Arcade has assets of $450,000 and liabilities of $125,000. Using the accounting equation, determine the following amounts: a. Stockholders' equity as of December 31 of the current year. b. Stockholders' equity as of December 31 at the end of the next year, assuming that assets increased by $65,000 and liabilities increased by $35,000 during the year.
Boston Products has a production budget as follows: May, 19,000 units; June, 22,000 units; and July, 27,000 units. Each unit requires 2.5 labor hours at $10 per hour. What would be the budgeted direct labor cost for June?

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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