Question
All information provided: Could somebody provide the solution to Chapter 11, Problem 10, part C, requirements 1, 2 and 3 (Intermediate Accounting: Eighth Edition)? Described
All information provided:
Could somebody provide the solution to Chapter 11, Problem 10, part C, requirements 1, 2 and 3 (Intermediate Accounting: Eighth Edition)?
Described below is an situation involving accounting changes. The change occurs during 2016 before any adjusting entries or closing entries are prepared.
"C. At the beginning of 2016, Jantzen Specialties, which uses the sum-of-the-years'-digits method, changed to the straight-line method for newly acquired buildings and equipment. The change increased current year net income by $445,000.
1. Identify Type of change
2. Prepare any journal entry necessary as a direct result of the change as well as any adjusting entries for 2016, related to the situation described.
3. Briefly describe any other steps that should be taken to appropriately report the situation.
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