Aquatic Equipment Corporation decided to switch from the LIFO method of costing inventories to the FIFO method at the beginning of The inventory as reported at the end of using LIFO would have been $ higher using FIFO. Retained earnings at the end of was reported as $reflecting the LIFO method The tax rate is
Required:
Calculate the balance in retained earnings at the time of the change beginning of as it would have been reported if FIFO had been used in prior years.
Prepare the journal entry at the beginning of to record the change in accounting principle.
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Prepare the journal entry at the beginning of to record the change in accounting principle.
Note: If no entry is required for a transactionevent select No journal entry required" in the first account field.
Journal entry worksheet
Record the change in accounting principle.
Note: Enter debits before credits.
tableDateGeneral Journal,Debit,CreditJanuary nventory
