During 2013, Magma Company changed its inventory valuation method from LIFO to FIFO. The following information shows
Question:
During 2013, Magma Company changed its inventory valuation method from LIFO to FIFO. The following information shows the effect of this change.
Instructions:
1. Before the change from LIFO to FIFO, the Retained Earnings balance on January 1, 2011, was $700,000. Magma Company does not pay any dividends. Prepare the comparative statement of retained earnings, reflecting the change to FIFO, for 2011, 2012, and 2013.
2. What additional information would you need to prepare all the necessary disclosures to include in the notes to the 2013 financial statements?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Question Posted: