Retrospective approach: In retrospective approach, the financial statements are restated in such a way, that the financial statement reflects the new changes in accounting principles which had been adopted from the beginning. Prospective approach: In prospective approach, changes in the accounting estimates are reflected in the financial statements with effect from the current and future periods. This method is applied when application of retrospective approach seems to be impracticable. To prepare: The journal entry to record the change in inventory costing method.

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Answer 1

Question

Chapter 20, Problem 20.3P

(1)

To determine

Retrospective approach:

In retrospective approach, the financial statements are restated in such a way, that the financial statement reflects the new changes in accounting principles which had been adopted from the beginning.

Prospective approach:

In prospective approach, changes in the accounting estimates are reflected in the financial statements with effect from the current and future periods. This method is applied when application of retrospective approach seems to be impracticable.

To prepare: The journal entry to record the change in inventory costing method.

(2)

To determine

To prepare: The journal entry to record the changes in accounting principle.

(3)

To determine

To journalize: The entry to record the changes in accounting principle.

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Answer 2

Question

Chapter 20, Problem 20.3P

(1)

To determine

Retrospective approach:

In retrospective approach, the financial statements are restated in such a way, that the financial statement reflects the new changes in accounting principles which had been adopted from the beginning.

Prospective approach:

In prospective approach, changes in the accounting estimates are reflected in the financial statements with effect from the current and future periods. This method is applied when application of retrospective approach seems to be impracticable.

To prepare: The journal entry to record the change in inventory costing method.

(2)

To determine

To prepare: The journal entry to record the changes in accounting principle.

(3)

To determine

To journalize: The entry to record the changes in accounting principle.

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Answer 3

Question

Chapter 20, Problem 20.3P

(1)

To determine

Retrospective approach:

In retrospective approach, the financial statements are restated in such a way, that the financial statement reflects the new changes in accounting principles which had been adopted from the beginning.

Prospective approach:

In prospective approach, changes in the accounting estimates are reflected in the financial statements with effect from the current and future periods. This method is applied when application of retrospective approach seems to be impracticable.

To prepare: The journal entry to record the change in inventory costing method.

(2)

To determine

To prepare: The journal entry to record the changes in accounting principle.

(3)

To determine

To journalize: The entry to record the changes in accounting principle.

Expert Solution & Answer

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Answer 4

Question

Chapter 20, Problem 20.3P

(1)

To determine

Retrospective approach:

In retrospective approach, the financial statements are restated in such a way, that the financial statement reflects the new changes in accounting principles which had been adopted from the beginning.

Prospective approach:

In prospective approach, changes in the accounting estimates are reflected in the financial statements with effect from the current and future periods. This method is applied when application of retrospective approach seems to be impracticable.

To prepare: The journal entry to record the change in inventory costing method.

(2)

To determine

To prepare: The journal entry to record the changes in accounting principle.

(3)

To determine

To journalize: The entry to record the changes in accounting principle.

Expert Solution & Answer

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Answer 5

Chapter 20, Problem 20.3P

(1)

To determine

Retrospective approach:

In retrospective approach, the financial statements are restated in such a way, that the financial statement reflects the new changes in accounting principles which had been adopted from the beginning.

Prospective approach:

In prospective approach, changes in the accounting estimates are reflected in the financial statements with effect from the current and future periods. This method is applied when application of retrospective approach seems to be impracticable.

To prepare: The journal entry to record the change in inventory costing method.

(2)

To determine

To prepare: The journal entry to record the changes in accounting principle.

(3)

To determine

To journalize: The entry to record the changes in accounting principle.

Answer 6

Chapter 20, Problem 20.3P

(1)

To determine

Retrospective approach:

In retrospective approach, the financial statements are restated in such a way, that the financial statement reflects the new changes in accounting principles which had been adopted from the beginning.

Prospective approach:

In prospective approach, changes in the accounting estimates are reflected in the financial statements with effect from the current and future periods. This method is applied when application of retrospective approach seems to be impracticable.

To prepare: The journal entry to record the change in inventory costing method.

Answer 7

Chapter 20, Problem 20.3P

(1)

To determine

Retrospective approach:

In retrospective approach, the financial statements are restated in such a way, that the financial statement reflects the new changes in accounting principles which had been adopted from the beginning.

Prospective approach:

In prospective approach, changes in the accounting estimates are reflected in the financial statements with effect from the current and future periods. This method is applied when application of retrospective approach seems to be impracticable.

To prepare: The journal entry to record the change in inventory costing method.

Answer 8

(2)

To determine

To prepare: The journal entry to record the changes in accounting principle.

Answer 9

(2)

To determine

To prepare: The journal entry to record the changes in accounting principle.

Answer 10

(3)

To determine

To journalize: The entry to record the changes in accounting principle.

Answer 11

(3)

To determine

To journalize: The entry to record the changes in accounting principle.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 20 - Prob. 20.1Q Ch. 20 - Prob. 20.2Q Ch. 20 - Prob. 20.3Q Ch. 20 - Lynch Corporation changes from the...Ch. 20 - Prob. 20.5Q Ch. 20 - Most changes in accounting principles are recorded...Ch. 20 - Prob. 20.7Q 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...

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