The Cecil-Booker Vending Company changed its method of valuing inventory from the average cost method to...

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The Cecil-Booker Vending Company changed its method of valuing inventory from the average cost method to the FIFO cost method at the beginning of 2024. At December 31, 2023, Inventories were $120,000 (average cost basis) and were $124,000 a year earlier. Cecil Booker's accountants determined that the inventories would have totaled $155,000 at December 31, 2023, and $160,000 at December 31, 2022, if determined on a FIFO basis. A tax rate of 25% is in effect for all years. One hundred thousand common shares were outstanding each year. Income from continuing operations was $400,000 in 2023 and $525,000 in 2024. There were no discontinued operations either year. Required: 1. Prepare the journal entry at January 1, 2024, to record the change in accounting principle. (All tax effects should be reflected in the deferred tax liability account.) 2. Prepare the 2024-2023 comparative income statements beginning with income from continuing operations (adjusted for any revisions). Include per share amounts Complete this question by entering your answers in the tabs below. Required Required 2 Prepare the journal entry at January 1, 2024, to record the change in accounting principle. (All tax effects should be reflected in the deferred tax liability account.) Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < Record the change in accounting principle. Show lessA Note: Enter debits before credits. Date January 01, 2024 General Journal Debit Credit Record entry View general journal Clear entry The Cecil-Booker Vending Company changed its method of valuing inventory from the average cost method to the FIFO cost method at the beginning of 2024. At December 31, 2023, inventories were $120,000 (average cost basis) and were $124,000 a year earlier. Cecil-Booker's accountants determined that the inventories would have totaled $155,000 at December 31, 2023, and $160,000 at December 31, 2022, if determined on a FIFO basis. A tax rate of 25% is in effect for all years. One hundred thousand common shares were outstanding each year. Income from continuing operations was $400,000 in 2023 and $525,000 in 2024. There were no discontinued operations either year. Required: 1. Prepare the journal entry at January 1, 2024, to record the change in accounting principle. (All tax effects should be reflected in the deferred tax liability account.) 2. Prepare the 2024-2023 comparative income statements beginning with income from continuing operations (adjusted for any revisions). Include per share amounts. Complete this question by entering your answers in the tabs below. Required Required 2 Prepare the 2024-2023 comparative income statements beginning with income from continuing operations (adjusted for any revisions). Include per share amounts. Note: Round EPS answers to 2 decimal places. COMPARATIVE INCOME STATEMENTS 2024 2023 Earnings per common share < Required 1 Show lessA The Cecil-Booker Vending Company changed its method of valuing inventory from the average cost method to the FIFO cost method at the beginning of 2024. At December 31, 2023, Inventories were $120,000 (average cost basis) and were $124,000 a year earlier. Cecil Booker's accountants determined that the inventories would have totaled $155,000 at December 31, 2023, and $160,000 at December 31, 2022, if determined on a FIFO basis. A tax rate of 25% is in effect for all years. One hundred thousand common shares were outstanding each year. Income from continuing operations was $400,000 in 2023 and $525,000 in 2024. There were no discontinued operations either year. Required: 1. Prepare the journal entry at January 1, 2024, to record the change in accounting principle. (All tax effects should be reflected in the deferred tax liability account.) 2. Prepare the 2024-2023 comparative income statements beginning with income from continuing operations (adjusted for any revisions). Include per share amounts Complete this question by entering your answers in the tabs below. Required Required 2 Prepare the journal entry at January 1, 2024, to record the change in accounting principle. (All tax effects should be reflected in the deferred tax liability account.) Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < Record the change in accounting principle. Show lessA Note: Enter debits before credits. Date January 01, 2024 General Journal Debit Credit Record entry View general journal Clear entry The Cecil-Booker Vending Company changed its method of valuing inventory from the average cost method to the FIFO cost method at the beginning of 2024. At December 31, 2023, inventories were $120,000 (average cost basis) and were $124,000 a year earlier. Cecil-Booker's accountants determined that the inventories would have totaled $155,000 at December 31, 2023, and $160,000 at December 31, 2022, if determined on a FIFO basis. A tax rate of 25% is in effect for all years. One hundred thousand common shares were outstanding each year. Income from continuing operations was $400,000 in 2023 and $525,000 in 2024. There were no discontinued operations either year. Required: 1. Prepare the journal entry at January 1, 2024, to record the change in accounting principle. (All tax effects should be reflected in the deferred tax liability account.) 2. Prepare the 2024-2023 comparative income statements beginning with income from continuing operations (adjusted for any revisions). Include per share amounts. Complete this question by entering your answers in the tabs below. Required Required 2 Prepare the 2024-2023 comparative income statements beginning with income from continuing operations (adjusted for any revisions). Include per share amounts. Note: Round EPS answers to 2 decimal places. COMPARATIVE INCOME STATEMENTS 2024 2023 Earnings per common share < Required 1 Show lessA

Answer rating: 100% (QA)

Required 1 Journal entries are given below Date General Journal Debit Credit January 01 2024 Invento... View the full answer