Professional Simulation In this simulation, you are asked questions about changes in accounting policy. Prepare responses to all parts.

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KWW Professional Simulation Changes in Accounting Policy Time Remaining 1 hours 20 minutes Deractions Station Journal Financial Statements Resource E Gamer Company began operations on January 1, 2012, and uses the average-cost method of pricing Inventory. Management is contemplating a change in Inventory methods for 2015. The following Information is avaliable for the years 2012-2014. 2012 Net Income Computed Using Average-Cost Method FIFO Method $20,000 2013 2014 $15,000 18,000 20,000 24,000 27,000 On January 1, 2014, Gamer Issued 10-year, $200,000 face value, 6% bonds, at par. Each $1,000 bond is convertible Into 30 Gamer ordinary shares. The company has had 10,000 ordinary shares outstanding throughout its life. None of the bonds have been exercised as of the end of 2015. (ignore tax effects.) Directions Station Prepare the journal entry necessary to record a change from the average-cost method to the FIFO method in 2015. Deractions Station Journal Financial Statements Resourc Assuming Garner had the accounting change described above, Gamer's Income in 2015 was $30,000. Compute basic and diluted eamings per share for Garner Company for 2015. Show how Income and EPS will be reported for 2015 and 2014.