Determine net income to be reported

Assignment Help Accounting Basics
Reference no: EM132449979

Problem - Oriole Company began operations on January 1, 2015, and uses the average-cost method of pricing inventory. Management is contemplating a change in inventory methods for 2018. The following information is available for the years 2015-2017.


Net Income Computed Using


Average-Cost Method

FIFO Method

LIFO Method

2015

$16,060

$18,980

$12,010

2016

18,040

20,970

14,050

2017

20,180

25,130

17,000

Required -

(a) Prepare the journal entry necessary to record a change from the average cost method to the FIFO method in 2018.

(b) Determine net income to be reported for 2015, 2016, and 2017, after giving effect to the change in accounting principle.

(c) Assume Oriole Company used the LIFO method instead of the average cost method during the years 2015-2017. In 2018, Oriole changed to the FIFO method. Prepare the journal entry necessary to record the change in principle.

Reference no: EM132449979

Questions Cloud

Explain windows azure capabilities for virtual machines : Explain Windows Azure capabilities for virtual machines and managing hybrid cloud, including Windows Azure's Infrastructure as Service and storage capabilities
What net income should Nash report : The company presently uses the LIFO method of pricing its inventory, If comparative income statements are prepared, what net income should Nash report in 2016
Hows abc cost data are useful for manufacturing companies : Besides spotting irregularities, like the case above, what are some other ways that ABC cost data are useful for manufacturing companies?
Discuss the fisher effect : If the real interest rate is 3 percent and the nominal interest rate is 8 percent, what rate of inflation is the financial marketplace expecting?
Determine net income to be reported : Determine net income to be reported for 2015, 2016, and 2017, after giving effect to the change in accounting principle
Classify the subscriptions received in advance by a magazine : Classify the Subscriptions received in advance by a magazine publisher. A 2-year premium paid on a fire insurance policy.Utilities owed but not yet paid.
Resilience relates to productivity : Directly at low levels of productivity, but inversely at higher levels. Directly at low levels of productivity, but inversely at higher levels.
Cyber attacks using common cyber security resources : Tech companies prepare for cyber attacks using common cyber security resources.
What happens to the wastewater in orlando florida : What happens to the wastewater in Orlando Florida? Describe the wastewater treatment facilities on homes.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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