Chapter 9, Problem 9.24E

Accounting

Sunland Company uses the FIFO method for internal reporting purposes and LIFO for external reporting purposes. The balance in the LIFO Reserve account at the end of 2020 was $277000. The balance in the same account at the end of 2021 is $419000. Sunland’s Cost of Goods Sold account has a balance of $2110000 from sales transactions recorded during the year. What amount should Sunland report as Cost of Goods Sold in the 2021 income statement?

Toolum Corporation began operations on January 1, 2020, and uses the average-cost method of pricing inventory. Management is contemplating a change ininventory methods for 2023. The following information is available for the years2020–2022   Requirements:(Ignore all tax effects.)a. Prepare the journal entry necessary to record a change from the average-costmethod to the FIFO method in 2023. Show all workings  b. Determine net income to be reported for 2020, 2021, and 2022, after givingeffect to the change in accounting policy.

Mm.20. Subject  :- Account

In year 2022, cash sales is credited to Rent Income. What is the effect of the error in the year 2022 net income?

It is discovered in 2021 that ending inventory in 2019 was understated. What is the effect of the understatement on the following:2019:                                   Cost of goods sold                                                  Net income                                       Ending retained earnings2020:                                        Net purchases                                           Cost of goods sold                                                  Net income                                     Ending retained earnings

In​ 2019, ending inventory is overstated. What is the effect of the error on net income in 2019 and​ 2020?   A. Net income is understated in 2019 and 2020.   B. Net income is understated in 2019 and overstated in 2020.   C. Net income is overstated in 2019 and understated in 2020.   D. Net income is overstated in 2019 and 2020.

Note: who asked us to solve the question told us that the solution to this question is according to predictions, I did not understand his intention but maybe this will benefit you to solve. Note :pro forma income statement for year <2021>

Using 2019 values and not averages, answer the following:a) What is the inventory to sale conversion period?b) What is the sale to cash conversion period?