Calculate the balance in retained earnings at time of change

Assignment Help Cost Accounting
Reference no: EM133174057

Question - Aquatic Equipment Corporation decided to switch from the LIFO method of costing inventories to the FIFO method at the beginning of 2021. The inventory as reported at the end 0t 2020 using LIFO would have been $53,000 higher using FIFO. Retained earnings at the end of 2020 was reported as $710,000 (reflecting the LIFO method). The tax rate is 35%.

Required -

1. Calculate the balance in retained earnings at the time of the change (beginning of 2021) as it would have been reported if FIFO had been used in prior years.

2. Prepare the journal entry at the beginning of 2021 to record the change in accounting principle.

Reference no: EM133174057

Questions Cloud

How is the problem of counterfeiting and piracy related : Consider the case: Consumer A is strolling along Canal Street in New York City when she is accosted by a friendly salesperson who encourages her to see a range
Examine three company websites associated to accounting : Examine three company websites associated to accounting. Look for some specific reference on each site that matches your own set of values and beliefs
Should chen buy the new machine : The project cost of capital is 10%, and its marginal tax rate is 25%. Should Chen buy the new machine? Do not round intermediate calculations
Assignment on set raci matrix : a) Assuming you are the manager of your business or previous business.
Calculate the balance in retained earnings at time of change : Calculate the balance in retained earnings at the time of the change (beginning of 2021) as it would have been reported if FIFO had been used in prior years
Find the closest length that makes sense to you : You have an ice cream shop. You plan to increase the sugar content in your ice cream to see if it attracts more customers. You design an AB test in which some c
How important is reliability in research : Discuss the dimensions of reliability and provide a public administration example for each dimension. Provide answers with peer reviewed journal articles and re
People face a terrible dilemma : Watch the video "People face a terrible dilemma" available in the module, read Chapter one, and answer the following questions:
Prepare the appropriate adjusting entry for depreciation : Prepare the appropriate adjusting entry for depreciation in 2021 to reflect the revised estimate, assuming that the company uses the sum-of-years-digits method

Reviews

Write a Review

Cost Accounting Questions & Answers

  Which regression equation is better why

Using the method of least squares, run a regression using the number of orders as the independent variable. Which regression equation is better? Why?

  Define some ways accounting fraud could be committed

Determining appropriate product costs is essential to reporting a reliable inventory valuation. Fraud examiners have indicated that scams that involve product costs and expenses are relatively easy to detect.

  What is the total annual cost of the present ordering policy

What is the total annual cost of the present ordering policy for part number 650810/ss/R9/o? What would be the lot size for part number 650810/ss/R9/o if FabQual were to use an economic order quantity (EOQ)?

  What is the amount of the budgeted variable manufacturing

What is the amount of the budgeted variable manufacturing overhead cost per? unit? (Do not round any intermediary calculations.)

  Find what beginning balance of finished goods inventory

Find What is the beginning balance of Finished Goods Inventory? The Cost of Goods Manufactured is 60% of cost of goods sold. 36.

  Compute the product margins

Hi-Tek Manufacturing Inc. makes two types of industrial component parts-the B300 and the T500. Compute the product margins for the B300 and T500 under the company's traditional costing system

  Determine number board feet of lumber that towson company

Determine number board feet of lumber that Towson Company should buy in June. Towson expects that 1,800 and 2,050 book cases will be built in June

  Operating expense budget

The operating expense budget is based on the

  Decision making process related to the question

Identify any tools such as regression analysis or CVP that will support the decision making process related to the question. If needed, use calculations or lists

  How much interest revenue did bermudez earn in 2010

Bermudez Leasing Company purchased specialized equipment from Holmes Company on December 31, 2009 for $400,000. On the same date, it leased this equipment to Berry Company for 5 years, the useful life of the equipment.

  What will be the service departments residual income

The new machine is expected to have a 10% return. What will be the service department's residual income if the investment is accepted

  Prepare a bank reconciliation for laymon boat company

Prepare a bank reconciliation for Laymon Boat Company at September 30 and prepare any adjusting entries necessary as a result of the bank reconciliation.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd