Change in inventory methods: Change in inventory method is said to be the difference between the previous year’s ending inventory and the current year’s ending inventory. Disclosure Note: Disclosure notes are added in the footnotes of the financial statement of a company. These notes contain certain information about the company which cannot be enclosed in the face of the income statement, balance sheet, statement of cash flows, and statement of changes in equity. To Prepare: the disclosure note for M Department Stores which will be included in the 2018 financial statements.

Question

Want to see the full answer?

Answer 1

Question

Chapter 20, Problem 20.2BYP

(1)

To determine

Change in inventory methods:

Change in inventory method is said to be the difference between the previous year’s ending inventory and the current year’s ending inventory.

Disclosure Note:

Disclosure notes are added in the footnotes of the financial statement of a company. These notes contain certain information about the company which cannot be enclosed in the face of the income statement, balance sheet, statement of cash flows, and statement of changes in equity.

To Prepare: the disclosure note for M Department Stores which will be included in the 2018 financial statements.

(2)

To determine

To Explain: the reason for which the cumulative effect of the change on prior years’ income is not determinable.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Q.13 coronado industries sells its product for $80 per unit…

23) f the buyer is ready to bear the entire cost of shipment charges, it is being called as _____________________. a. FOB destination b. FOB c. FOB shipping point d. None

Answer 2

Question

Chapter 20, Problem 20.2BYP

(1)

To determine

Change in inventory methods:

Change in inventory method is said to be the difference between the previous year’s ending inventory and the current year’s ending inventory.

Disclosure Note:

Disclosure notes are added in the footnotes of the financial statement of a company. These notes contain certain information about the company which cannot be enclosed in the face of the income statement, balance sheet, statement of cash flows, and statement of changes in equity.

To Prepare: the disclosure note for M Department Stores which will be included in the 2018 financial statements.

(2)

To determine

To Explain: the reason for which the cumulative effect of the change on prior years’ income is not determinable.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 20, Problem 20.2BYP

(1)

To determine

Change in inventory methods:

Change in inventory method is said to be the difference between the previous year’s ending inventory and the current year’s ending inventory.

Disclosure Note:

Disclosure notes are added in the footnotes of the financial statement of a company. These notes contain certain information about the company which cannot be enclosed in the face of the income statement, balance sheet, statement of cash flows, and statement of changes in equity.

To Prepare: the disclosure note for M Department Stores which will be included in the 2018 financial statements.

(2)

To determine

To Explain: the reason for which the cumulative effect of the change on prior years’ income is not determinable.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 20, Problem 20.2BYP

(1)

To determine

Change in inventory methods:

Change in inventory method is said to be the difference between the previous year’s ending inventory and the current year’s ending inventory.

Disclosure Note:

Disclosure notes are added in the footnotes of the financial statement of a company. These notes contain certain information about the company which cannot be enclosed in the face of the income statement, balance sheet, statement of cash flows, and statement of changes in equity.

To Prepare: the disclosure note for M Department Stores which will be included in the 2018 financial statements.

(2)

To determine

To Explain: the reason for which the cumulative effect of the change on prior years’ income is not determinable.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 20, Problem 20.2BYP

(1)

To determine

Change in inventory methods:

Change in inventory method is said to be the difference between the previous year’s ending inventory and the current year’s ending inventory.

Disclosure Note:

Disclosure notes are added in the footnotes of the financial statement of a company. These notes contain certain information about the company which cannot be enclosed in the face of the income statement, balance sheet, statement of cash flows, and statement of changes in equity.

To Prepare: the disclosure note for M Department Stores which will be included in the 2018 financial statements.

(2)

To determine

To Explain: the reason for which the cumulative effect of the change on prior years’ income is not determinable.

Answer 6

Chapter 20, Problem 20.2BYP

(1)

To determine

Change in inventory methods:

Change in inventory method is said to be the difference between the previous year’s ending inventory and the current year’s ending inventory.

Disclosure Note:

Disclosure notes are added in the footnotes of the financial statement of a company. These notes contain certain information about the company which cannot be enclosed in the face of the income statement, balance sheet, statement of cash flows, and statement of changes in equity.

To Prepare: the disclosure note for M Department Stores which will be included in the 2018 financial statements.

Answer 7

Chapter 20, Problem 20.2BYP

(1)

To determine

Change in inventory methods:

Change in inventory method is said to be the difference between the previous year’s ending inventory and the current year’s ending inventory.

Disclosure Note:

Disclosure notes are added in the footnotes of the financial statement of a company. These notes contain certain information about the company which cannot be enclosed in the face of the income statement, balance sheet, statement of cash flows, and statement of changes in equity.

To Prepare: the disclosure note for M Department Stores which will be included in the 2018 financial statements.

Answer 8

(2)

To determine

To Explain: the reason for which the cumulative effect of the change on prior years’ income is not determinable.

Answer 9

(2)

To determine

To Explain: the reason for which the cumulative effect of the change on prior years’ income is not determinable.

Answer 10

Expert Solution & Answer

Answer 11

Expert Solution & Answer

Answer 12

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 13

Ch. 20 - Prob. 20.1Q Ch. 20 - There are three basic accounting approaches to...Ch. 20 - Prob. 20.3Q Ch. 20 - Lynch Corporation changes from the...Ch. 20 - Sugarbaker Designs Inc. changed from the FIFO...Ch. 20 - Most changes in accounting principles are recorded...Ch. 20 - Southeast Steel, Inc., changed from the FIFO...Ch. 20 - Prob. 20.8Q Ch. 20 - Its not easy sometimes to distinguish between a...Ch. 20 - For financial reporting, a reporting entity can be...

Solution Summary: The author explains how the company changed its method of valuing inventory from FIFO to LIFO during 2018 which was determined by the retail method.

Concept explainers

Videos

To Explain: the reason for which the cumulative effect of the change on prior years’ income is not determinable.

Want to see the full answer?

Chapter 20 Solutions