Holder-Webb Company began operations on January 1, 2015, and uses the average-cost method of pricing inventory. Management
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(Ignore all tax effects.)
(a) Prepare the journal entry necessary to record a change from the average-cost method to the FIFO method in 2018.
(b) Determine net income to be reported for 2015, 2016, and 2017, after giving effect to the change in accounting principle.
(c) Assume Holder-Webb Company used the LIFO method instead of the average-cost method during the years 2015-2017. In 2018, Holder-Webb changed to the FIFO method. Prepare the journal entry necessary to record the change in principle.
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Related Book For
Intermediate Accounting
ISBN: 978-1118742976
16th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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