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Coronado Company began operations on January 1, 2023, and uses the average-cost method of pricing inventory Management is contemplating a change in inventory methods for 2026. The following information is available for the years 2023-2025. 2023 2024 2025 Net Income Computed Using Average-Cost Method FIFO Method $16,140 17,960 20,000 (Ignore all tax effects.) (a) $19,020 20,890 25,230 LIFO Method $11.880 13,970 17.160 Prepare the journal entry necessary to record a change from the average-cost method to the FIFO method in 2026. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts. List debit entry before credit entry)

Coronado Company began operations on January 1, 2023, and uses the average-cost method of pricing inventory Management is contemplating a change in inventory methods for 2026. The following information is available for the years 2023-2025. 2023 2024 2025 Net Income Computed Using Average-Cost Method FIFO Method $16,140 17,960 20,000 (Ignore all tax effects.) (a) $19,020 20,890 25,230 LIFO Method $11.880 13,970 17.160 Prepare the journal entry necessary to record a change from the average-cost method to the FIFO method in 2026. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts. List debit entry before credit entry)

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 3P: Koopman Company began operations on January 1, 2018, and uses they FIFO inventory method for...
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Coronado Company began operations on January 1, 2023, and uses the average-cost method of pricing inventory Management is contemplating a change in inventory methods for 2026. The following information is available for the years 2023-2025. 2023 2024 2025 (Ignore all tax effects.) (a) Net Income Computed Using Average-Cost Method FIFO Method $19,020 20,890 25,230 $16,140 17,960 20,000 FIFO 2023 $27,000 2024 32,900 2025 28,300 2026 33,400 Prepare the journal entry necessary to record a change from the average-cost method to the FIFO method in 2026. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry) Account Titles and Explanation (a1) Average-Cost LIFO $23,900 $20,500 27,600 24,300 26,300 23.600 29,800 25,300 (Ignore tax considerations.) LIFO Method $11.880 13,970 Below is the net income of Teal Instrument Co. a private corporation, computed under the three inventory methods using a periodic system. 17.160 Account Titles and Explanation Debit Credit Assume that in 2026 Teal decided to change from the FIFO method to the average-cost method of pricing inventories. Prepare the journal entry necessary for the change that took place during 2026. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts. List debit entry before credit entry) Debit Credit
Transcribed Image Text:Coronado Company began operations on January 1, 2023, and uses the average-cost method of pricing inventory Management is contemplating a change in inventory methods for 2026. The following information is available for the years 2023-2025. 2023 2024 2025 (Ignore all tax effects.) (a) Net Income Computed Using Average-Cost Method FIFO Method $19,020 20,890 25,230 $16,140 17,960 20,000 FIFO 2023 $27,000 2024 32,900 2025 28,300 2026 33,400 Prepare the journal entry necessary to record a change from the average-cost method to the FIFO method in 2026. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry) Account Titles and Explanation (a1) Average-Cost LIFO $23,900 $20,500 27,600 24,300 26,300 23.600 29,800 25,300 (Ignore tax considerations.) LIFO Method $11.880 13,970 Below is the net income of Teal Instrument Co. a private corporation, computed under the three inventory methods using a periodic system. 17.160 Account Titles and Explanation Debit Credit Assume that in 2026 Teal decided to change from the FIFO method to the average-cost method of pricing inventories. Prepare the journal entry necessary for the change that took place during 2026. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts. List debit entry before credit entry) Debit Credit
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