At the beginning of 2017, Metlock Construction Company changed from the completed-contract method to recognizing revenue over
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At the beginning of 2017, Metlock Construction Company changed from the completed-contract method to recognizing revenue over time (percentage-of-completion) for financial reporting purposes. The company will continue to use the completed-contract method for tax purposes. For years prior to 2017, pretax income under the two methods was as follows: percentage-of-completion $128,800, and completed-contract $86,100. The tax rate is 35%.Prepare Metlock?s 2017 journal entry to record the change in accounting principle.?
Account Titles and Explanation | Debit | Credit |
Related Book For
Financial Accounting
ISBN: 978-0134564142
6th Canadian edition
Authors: Walter Jr. Harrison, Charles T. Horngren, C. William Thomas, Greg Berberich, Catherine Seguin
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