Prepare the journal entry necessary to record the change

Assignment Help Accounting Basics
Reference no: EM131928355

Problem

Below is the net income of Anita Ferreri Instrument Co., a private corporation, computed under the three inventory methods using a periodic system.


FIFO

Average Cost

LIFO

2012

$26,896

$22,754

$20,046

2013

30,402

24,953

20,002

2014

29,641

26,667

23,373

2015

34,181

30,554

26,636

(Ignore tax considerations.)

(a) Assume that in 2015 Ferreri decided to change from the FIFO method to the average-cost method of pricing inventories. Prepare the journal entry necessary for the change that took place during 2015, and show net income reported for 2012, 2013, 2014, and 2015.

(b) Assume that in 2015 Ferreri, which had been using the LIFO method since incorporation in 2012, changed to the FIFO method of pricing inventories. Prepare the journal entry necessary to record the change in 2015 and show net income reported for 2012, 2013, 2014, and 2015.

Reference no: EM131928355

Questions Cloud

Should intelisystems make or buy the switch : Given the same cost structure, should InteliSystems make or buy the switch? Show your analysis.
Loan with an interest rate : If she obtains financing to come up with the difference what will her monthly payments be assuming she gets a 5 year loan with an interest rate
What advice would you give the accountant : The net income of Steinbach & Sons, a landscaping company, decreased sharply during 2016. As a personal friend, what advice would you give the accountant?
How many additional dollars of interest would you earn : You have $540540 in an account which pays 4.14.1?% compounded annually. How many additional dollars of interest would you earn over 44 years.
Prepare the journal entry necessary to record the change : Prepare the journal entry necessary to record the change in 2015 and show net income reported for 2012, 2013, 2014, and 2015.
What is that cash price of the house now : What is that cash price of the house now with a 30 yr mortgage?
What does this problem tell you about the interest rate risk : Illustrate your answers by graphing bond prices versus YTM. What does this problem tell you about the interest rate risk of longer-term bonds?
What position will you need to hedge your portfolio : You have a $6,000,000 portfolio that has a beta of 2.4 to the S&P 500. You have decided you want to hedge this portfolio over the next 12 months.
What is the total current cash price of house : A modest home was purchased for $30,000 down payment and $1,000 a month for 5 yrs with a 12% interest rate compounded monthly.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Bond journal entries

Crow Co. issued 493,000 of 10%, 20 yr. bonds on Jan, 1, 2010, at face value. Interest is payable annually on Jan. 1. Prepare journal entries to record the last of the following events:

  Evaluate the financial risks

Evaluate the financial risks associated with operating internationally.  If your chosen company does not operate internationally, evaluate what the financial risks could be if they were to expand internationally

  What is the bond current market price

Its par value is $1,000. Its semiannual coupons are $50. What is the bond's current market price? Show work

  Evaluate the alternative strategies available to the company

The variable cost of the power drill manufactured by Home tools Ltd is £4 and the selling price £10. The company expects its net profit for the year just.

  During 2010 yoder enterprises generated revenues of 60000

during 2010 yoder enterprises generated revenues of 60000. the companys expenses were as follows cost of goods sold of

  Determine the net present value of the investment

An investment that costs $65,000 will return $30,000 per year for 6 years. Determine the net present value of the investment

  Scudder company has two operating departments mixing and

scudder company has two operating departments mixing and forming. mixing has 240 employees and occupies 22000 ftsup2.

  1112 brendan inc reports net assets of 760000 although

1112 brendan inc. reports net assets of 760000 although equipment with a 4 year life having a book value of 440000 is

  Levels of activities to the next cost objective

Specify an appropriate cost driver for tracing costs associated with the various levels of activities to the next cost objective or products, whichever is appropriate.

  Compute lowest average cost of capital for each increment

Calculate the lowest average cost of capital for each increment of $40 million of new capital, where Deming raises $20 million in the equity market.

  Define terminology relationships computations and entries

In a period in which a taxable temporary difference reverses, the reversal will cause taxable income to be _______ (less than, greater than).

  How much of these amounts can victoria deduct

In addition, she incurs related legal fees of $65,000 in defending herself from the IRS. How much of these amounts can Victoria deduct

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