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For years prior to 2014, pretax income under the two methods was as follows: percentage-of-completion $120,000, and completed-contract $80,000.
Prepare Shannon's 2014 journal entry to record the change in accounting principle.
Tedesco's depreciable assets had a cost of $250,000 with a $40,000 salvage value, and an 8-year remaining useful life at the beginning of 2014.
On January 1, 2015, Sesame revised these estimates to a total useful life of 4 years and a salvage value of $10,000.
Change from completed-contract to percentage-of-completion method on construction contracts.
Prepare the general journal entries that should be made at December 31, 2015, to record these events.
Peter M. Dell Co. purchased equipment for $510,000 which was estimated to have a useful life of 10 years with a salvage value of $10,000 at the end.
Gerald Englehart Industries changed from the double declining-balance to the straight-line method in 2015 on all its plant assets.
Accrued vacation pay for the year of $31,100 was not recorded because the bookkeeper "never heard that you had to do it."
Prepare the correcting entry necessary when these errors are discovered. Assume that the books are closed.
What is the definition of "retrospective application"?
If a company registered with the SEC justifies a change in accounting method as preferable under the circumstances, and the circumstances change.
What are the major reasons why companies change accounting methods?
How should this change in accounting entity be reflected in the financial statements?
Evaluate at least one security policy or procedure that would minimize threats and risks.
Is it important for non-accountants to understand how to read financial statements
Under cash-basis accounting, how much expense should Kroger report for February and March?
Prepare a schedule to determine the gross profit for 2014, 2015, and 2016 from the installment sale.
How should Dexter classify the deferred tax consequences of the temporary differences on its balance sheet?
he down payment is not refundable, no future services are required by the franchisor, and collection of the note is reasonably assured.
How much should Campbell record as revenue from franchise fees on January 1, 2014? At what amount should Benjamin record the acquisition cost of the franchise.
Matre pays the $30 installment due December 1, 2014. 3. On December 31, 2014, the appropriate entries are made to record profit realized on the installment sale
She reviews the financial statements Nies prepared and tells Nies to recognize membership revenue when the fees are received.
What is the proper treatment of a net operating loss for financial reporting purposes?