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AC 302 WEEK 8 Willy Exercises Exercise 22 Question 4 Gordon Company started operations on January 1, 2009, and has used the FIFO method of inventory valuation since its inception. In 2014, it decides to switch to the average cost method. You are provided with the following information. Net Income Retained Earnings (Ending Balance) Under FIFO Under Average-Cost Under FIFO 2009 $101,820 $91,710 $101,540 2010 69,300 64,1

Other / Other Other / AC 302 09 Sep 2015

AC 302 WEEK 8 Chapter 22 Homework Brief Exercise 22 Question 3 Shannon, Inc., changed from the LIFO cost flow assumption to the FIFO cost flow assumption in 2014. The increase in the prior year's income before taxes is $1,200,000. The tax rate is 40%. Prepare Shannon’s 2014 journal entry to record the change in accounting principle.

Other / Other allied-american-university / AC 302 09 Sep 2015

AC 302 WEEK 8 Chapter 22 Homework Brief Exercise 22 Question 7 At January 1, 2014, Beidler Company reported retained earnings of $2,000,000. In 2014, Beidler discovered that 2013 depreciation expense was understated by $400,000. In 2014, net income was $900,000 and dividends declared were $250,000. The tax rate is 40%.

Other / Other allied-american-university / AC 302 09 Sep 2015

AC 302 WEEK 8 Chapter 22 Homework Brief Exercise 22 Question 9 Roundtree Manufacturing Co. is preparing its year-end financial statements and is considering the accounting for the following items.

Other / Other Other / AC 302 09 Sep 2015

AC 302 WEEK 8 Homework Chapter 22 Multiple Choice Questions IFRS Multiple Choice Question 06 Your answer is correct. Is the following exception applicable to IFRS or U.S. GAAP? “If determining the effect of a change in accounting principle is considered impracticable, then a company should report the effect of the change in the period in which it believes it practicable to do so.” IFRS U.S. GAAP No No

Other / Other allied-american-university / AC 302 09 Sep 2015

AC 302 WEEK 7 Exercise 21 Question 10 Morgan Leasing Company signs an agreement on January 1 2014 to lease equipment to Cole Company. The following information relates to this agreement. 1. The term of the noncancelable lease is 6 years with no renewal option. The equipment has an estimated economic life of 6 years. 2. The cost of the asset to the lessor is $241,500. The fair value of the asset at January 1, 2014, is $241,500. 3. The asset

Other / Other strayer university / AC 302 08 Sep 2015

AC 302 WEEK 7 Multiple Choice Question IFRS True False Question 01 Your answer is correct IFRS requires that companies provide a year-by-year breakout of future noncancelable lease payments due in years 1 through 5. IFRS Multiple Choice Question 07 Your answer is correct. Which of the following is one of the criteria for recording a lease as a finance lease, under IFRS? True False Click if you would like

Other / Other strayer university / AC 302 08 Sep 2015

AC 302 WEEK 7 Problem 21 Question 1 Glaus Leasing Company agrees to lease machinery to Jensen Corporation on January 1, 2014. The following information relates to the lease agreement. 1. The term of the lease is 7 years with no renewal option, and the machinery has an estimated economic life of 9 years. 2. The cost of the machinery is $508,000, and the fair value of the asset on January 1, 2014, is $781,000. 3. At the end of the lease term

Other / Other strayer university / AC 302 08 Sep 2015

AC 302 WEEK 7 Exercise Questions AND Problems Exercise 21 Question 4 Your answer is partially correct Castle Leasing Company signs a lease agreement on January 1, 2014, to lease electronic equipment to Jan Way Company. The term of the noncancelable lease is 2 years, and payments are required at the end of each year. The following information relates to this agreement: 1. Jan Way has the option to purchase the equipment for $16,990 upon

Other / Other Other / AC 302 08 Sep 2015

AC 302 WEEK 7 Exercise 21 Question 4 Your answer is partially correct Castle Leasing Company signs a lease agreement on January 1, 2014, to lease electronic equipment to Jan Way Company. The term of the noncancelable lease is 2 years, and payments are required at the end of each year. The following information relates to this agreement: 1. Jan Way has the option to purchase the equipment for $16,990 upon termination of the lease. 2. T

Other / Other Other / AC 302 08 Sep 2015