Hello,

Please help with my Intermediate Accounting II, Unit 8, for accounting changes and error analysis.

Thanks,

K

Exercise 22-4 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. Retained Earnings (Ending Balance) Net Income Under FIFO 2009 2010 2011 2012 2013 2014 Under Average-Cost $101,590 69,560 90,520 120,180 300,890 304,930 $91,110 64,530 80,730 130,620 292,990 310,010 Under FIFO $100,060 160,820 235,260 339,290 589,520 779,140 (a) What is the beginning retained earnings balance at January 1, 2011, if Gordon prepares comparative financial statements starting in 2011? $ Retained earnings, January 1 (b) What is the beginning retained earnings balance at January 1, 2014, if Gordon prepares comparative financial statements starting in 2014? $ Retained earnings, January 1 (c) What is the beginning retained earnings balance at January 1, 2015, if Gordon prepares single-period financial statements for 2015? $ Retained earnings, January 1 (d) What is the net income reported by Gordon in the 2014 income statement if it prepares comparative financial statements starting with 2012? 2012 Net $ Inc om e 2013 $ Don't show me this message again for the assignment 2014 $