Wolfgang Kitchens has always used the FIFO inventory costing method for both financial reporting and tax purposes.
Question:
Required:
1. Prepare the journal entry at the beginning of 2018 to record the change in accounting principle. (Ignore income taxes.)
2. Briefly describe other steps Wolfgang will take to report the change.
3. What amounts will Wolfgang report for net income in its 2018-2016 comparative income statements?
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Related Book For
Intermediate Accounting
ISBN: 9781259722660
9th Edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
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