Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

can i get help with this question please Exercise 22-2 ny began operations on January 1, 2015, and uses the average -cost method of pricing

can i get help with this question please image text in transcribed
image text in transcribed
Exercise 22-2 ny began operations on January 1, 2015, and uses the average -cost method of pricing inventory. Management is contemplating a change in inventory method s for 2018. The following information is available for the years 2015-2017. Net Income Computed Using Average-Cost Method FIFO Method LIFO Method 2015 2016 2017 $15,990 17,880 20,090 $19,120 20,820 24,750 $12,040 14,130 16,970 (a) Prepare the journal entry necessary to record a change from the average cost m account titles and enter 0 for the amounts) Account Titles and Explanation ethod to the FIFO method in 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the Debit Credit (b) Determine net income to be reported for 2015, 2016, and 2017, ater oiving effect to the change in accounting principle. (b) Determine net income to be reported for 2015, 2016, and 2017, after giving effect to the change in accounting principle. Net Income 2015 2016 2017 (c) Assume Ivanhoe Company used the LIFO method instead of the average cost method during the years 2015-2017. In 2018, Ivanhoe changed to the FIFO method. Prepare the journal entry necessary to record the change in principle. (Credit account titles are automaticall indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Account Titles and Explanation Debit Credit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And Assurance Services With ACL CD

Authors: McGraw Hill

1st Edition

1259071200, 978-1259071201

More Books

Students also viewed these Accounting questions

Question

Is it clear what happens if an employee violates the policy?

Answered: 1 week ago