Intermediate Accounting: E22-4 Linden Company started operations on January

Intermediate Accounting 
E22-4 
Linden Company started operations on January 1, 2006, and has used the FIFO method of inventory valuation since its inception. In 2012, it decides to switch to the average cost method. You are provided with the following information. 
Net Income Retained Earnings (Ending Balance) 
Under FIFO Under Average Cost Under FIFO Difference between FIFO & Ave Cost 
2006 100,000 92,000 100,000 8,000 
2007 70,000 65,000 160,000 5,000 
2008 90,000 80,000 235,000 10,000 
2009 120,000 130,000 340,000 (10,000)
2010 300,000 293,000 590,000 7,000 
2011 305,000 310,000 780,000 (5,000)
(a) What is the beginning retained earnings balance at January 1, 2008, if Linden prepares comparative financial statements starting in 2008? 
(b) What is the beginning retained earnings balance at January 1, 2011, if Gordon prepares comparative financial statements starting in 2011? 
(c) What is the beginning retained earnings balance at January 1, 2012, if Gordon prepares single period financial statements for 2012? 
(d) What is the net income reported by Gordon in the 2011 income statement if it prepares comparative financial statements starting with 2009? 
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