Ask Question, Ask an Expert


Ask Accounting Basics Expert

Brown Corporation had consistently reported its income by the cash method. The corporation should have used the accrual method because inventories are material to the business. In 2005, Brown timely filed a request to change to the accrual method. At the beginning of 2005, Brown had accounts receivable of $60,000. Also, Brown had merchandise on hand with a cost of $80,000 and accounts payable for merchandise of $25,000. The accounts receivable, inventory, and accounts payable balance per books were zero. Determine the adjustment to income due to the change in accounting method and the amount that is allocated to 2005.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M947931

Have any Question? 

Related Questions in Accounting Basics

Problem-ccc has decided to carry and sell t-shirts with its

Problem- CCC has decided to carry and sell t-shirts with its logo printed on them. Journalize and post the following entries. You may need to create additional T accounts. Note that we will work a whole year's worth of p ...

Read the pcaob enforcement case against christopher e

Read the PCAOB enforcement case against Christopher E. Anderson (PCAOB Release No. 105-2008-003, available at Among the PCAOB's findings is that the audit partner, Anderson, changed materiality during the ...

Practice questionswhat are the main problems associated

Practice questions: What are the main problems associated with strategic management accounting?

I need help with a t-chart account with the following1

I need help with a T-Chart Account with the following: 1. Received $10,000 contribution from Bill London, owner, in exchange for capital. 2. Paid utilities expense of $400. 3. Paid the liability from July 5 (Purchased eq ...

Using financial statement disclosures to infer bad debt

Using Financial Statement Disclosures to Infer Bad Debt Expense The 2009 annual report for Sears Holding Corporation contained the following Description Using Financial Statement Disclosures to Infer Bad Debt Expense The ...

Legal regulation of business structures assignment-

LEGAL REGULATION OF BUSINESS STRUCTURES ASSIGNMENT- QUESTION Dr Dawes declared personal bankruptcy on 28 February 2016 and he remains un-discharged.  He informed the board of GML (refer to the facts of this company in yo ...

Auditing assurance amp services individual assignment

Auditing Assurance & Services Individual Assignment Research Question - You work in a chartered accounting firm and your partner, Sally Smith, has asked you to do some research and write a report to update her about the ...

Practice questionsdistinguish betweennormal lossesabnormal

Practice questions: Distinguish between normal losses abnormal losses and explain their costing treatments.

Accounts receivablesbullwhat is the importance of the

Accounts Receivables • What is the importance of the turnover of Accounts Receivables? • Why is it is essential for organizations to keep cash reserves on hands? • Is it possible to still bring in a lot of revenue, but s ...

Assignment - review of current accounting issuestaskfor

Assignment - Review of Current Accounting Issues Task For this assignment assume that you are the senior accountant working for a major firm. Question 1 - The CEO has forwarded to you an interesting article and requires ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate