Our Blog – More About our Services

Change in Accounting Principle Kamila Stores decided to change from LIFO to FIFO as of January 1, 2008. The change is being made for both book and tax purposes.   Net Income Excess of LIFO Cost of     Computed Goods Sold over Income Effect Year Using...

Change in Accounting Principle without Detailed Prior Year Information Refer to Exercise 20 29. Assume that the detailed information for 2006 and 2007 is not available. During 2008, dividends of $17,500 were paid (compared to dividends of $15,000 in both 2006 and...

Changes in Accounting Estimates and Accounting Principles Due to changing economic conditions and to making its financial statements more comparable to those of other companies in its industry, the management of Kelsea Inc. decided on January 1, 2008, to review its...

Accounting Errors The following errors in the accounting records of the Willis & Glassett Partnership were discovered on January 10, 2008.   Ending   Accrued Rent Accrued Interest   Inventories Depreciation Revenue Not Expense Not Year of Error...

Analysis of Errors State the effect of each of the following errors made in 2007 on the balance sheets and the income statements prepared in 2007 and 2008. (a) The ending inventory is understated as a result of an error in the count of goods on hand. (b) The ending...

Error Disclosure Comparative statements for Bodie Corporation are as follows: Bodie Corporation Income Statements and Statement of Retained Earnings For the Years Ended December 31   2007 2006 Sales $4,600,000 $4,350,000 Cost of goods sold 2,346,000 2,305,500...

Weighted Average Number of Shares Outdoor Recreation Products Inc. had 50,000 shares of common stock outstanding at the end of 2007. During 2008 and 2009, the following transactions took place. 2008 Mar. 31 Sold 10,000 shares at $24. Apr. 26 Paid cash dividend of...

Diluted Earnings per Share—Conversion of Debentures The following information relates to the December 31, 2007, balance sheet for Chiapucci Incorporated. 6% convertible 10 year debentures  issued at par         ...

Diluted Earnings per Share—Complex Capital Structure Carrizo Corporation’s capital structure is as follows:   December 31,   2009 2008 Outstanding shares of:     Common stock 336,000 280,000 Nonconvertible, noncumulative preferred stock 10,000...