Carrboro Construction Company elected to change its method of accounting from the percentage-of-completion method to the completed-contract method. Prior-years income (cumulative) would have been $310,000 lower if Carrboro had always used the completed contract method. The company is subject to a 35% tax rate. Prepare the journal entry to record the change in method. (Record debits first, then credits. Exclude explanations from any journal entries.) Account ... Current Year

Carrboro Construction Company elected to change its method of accounting from the percentage-of-completion method to the completed-contract method. Prior-years income (cumulative) would have been $310,000 lower if Carrboro had always used the completed contract method. The company is subject to a 35% tax rate. Prepare the journal entry to record the change in method. (Record debits first, then credits. Exclude explanations from any journal entries.) Account ... Current Year

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Accounting Muckingjay Inc. opened in 2022. The company reported sales revenue of $486,000 and expenses of $574,000. The revenue is on account, and no cash has been received or paid out for expenses. There are no permanent or temporary differences, so the book loss and taxable loss will be the same. Muckingjay plans to carry forward the net operating loss (NOL). The company has a 38% tax rate, and a valuation allowance is not required. Prepare the following for 2022: a) The necessary journal entry to record the NOL carryforward. b) A partial income statement beginning with sales revenue.
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