Hampton's Construction,Inc.decided to change from completed-contract method of accounting to percentage-of-completion method.The following information is available for net income.Ignore income tax effects: What is the journal entry to record the change in accounting principle on January 1,2016?
A)No journal entry need for prospective application of the change in principle.
D) Retained Earnings Prior Period Adj. 51,000

Question

Hampton's Construction,Inc.decided to change from completed-contract method of accounting to percentage-of-completion method.The following information is available for net income.Ignore income tax effects:   What is the journal entry to record the change in accounting principle on January 1,2016?
A)No journal entry need for prospective application of the change in principle. 
D) Retained Earnings Prior Period Adj. 51,000

Quizplus · Accepted Answer

The Answer of Hampton's Construction,Inc.decided to change from completed-contract method of accounting to percentage-of-completion method.The following information is available for net income.Ignore income tax effects:   What is the journal entry to record the change in accounting principle on January 1,2016?
A)No journal entry need for prospective application of the change in principle. 
D) Retained Earnings Prior Period Adj. 51,000