9) Matador began doing business on January 1, 2018, using the Percentage of Completion to record...

 

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9) Matador began doing business on January 1, 2018, using the Percentage of Completion to record construction revenues. During 2022, Matador changed to the Completed Contract Method to record construction revenues to be consistent with industry practice. The bookkeeper used the Completed Contract Method for recording construction revenues in 2022. Determine the adjustment to ICO. Matador has a corporate tax rate of 30%. The company compiled the following comparative data. Percentage of Completion Method Completed Contract Method 2018 $ 600,000 $ 387,500 2019 $ 545,500 $ 322,500 2020 $ 537,500 $ 385,000 2021 $ 512,500 $ 395,000 2022 $685,000 $ 415,000 10) Using the information in Question 9, determine the cumulative effect adjustment to Retained Earnings that Matador will recognize in the journal entry to record this accounting change. Matador has a corporate tax rate of 30%. 11) Matador reports 3 years of comparative financial statements (2022, 2021, and 2020). Using the information in Question 9, determine the cumulative effect adjustment to Retained Earnings that Matador will recognize in the comparative financial statements to record this accounting change. Matador has a corporate tax rate of 30%. 9) Matador began doing business on January 1, 2018, using the Percentage of Completion to record construction revenues. During 2022, Matador changed to the Completed Contract Method to record construction revenues to be consistent with industry practice. The bookkeeper used the Completed Contract Method for recording construction revenues in 2022. Determine the adjustment to ICO. Matador has a corporate tax rate of 30%. The company compiled the following comparative data. Percentage of Completion Method Completed Contract Method 2018 $ 600,000 $ 387,500 2019 $ 545,500 $ 322,500 2020 $ 537,500 $ 385,000 2021 $ 512,500 $ 395,000 2022 $685,000 $ 415,000 10) Using the information in Question 9, determine the cumulative effect adjustment to Retained Earnings that Matador will recognize in the journal entry to record this accounting change. Matador has a corporate tax rate of 30%. 11) Matador reports 3 years of comparative financial statements (2022, 2021, and 2020). Using the information in Question 9, determine the cumulative effect adjustment to Retained Earnings that Matador will recognize in the comparative financial statements to record this accounting change. Matador has a corporate tax rate of 30%.