Hello,

Please help with my Intermediate Accounting II, Unit 8, for accounting changes and error analysis.

Thanks,

K

Exercise 22-2 Holder-Webb 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 available for the years 2012-2014. Net Income Computed Using Average-Cost Method 2012 2013 2014 $15,966 18,323 19,950 FIFO Method $19,505 21,738 24,525 LIFO Method $11,200 14,891 16,374 (a) Prepare the journal entry necessary to record a change from the average cost method to the FIFO method in 2015. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit (b) Determine net income to be reported for 2012, 2013, and 2014, after giving effect to the change in accounting principle. Net Income $ 201 2 $ 201 3 201 4 $ (c) Assume Holder-Webb Company used the LIFO method instead of the average cost method during the years 2012-2014. In 2015, HolderWebb changed to the FIFO method. Prepare the journal entry necessary to record the change in principle. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Don't show me this message again for the assignment Debit Credit