A firm changed from completed contract to percentage of completion for revenue recognition on long-term construction contracts in 20x7.This change had the following effects on earnings: Increase in earnings All years retained earnings balances before 20x6 100,000
By what amounts are the beginning retained earnings balances for 20x6 and 20x7 adjusted, if the 20x6 and 20x7 statements are shown comparatively.

Question

A firm changed from completed contract to percentage of completion for revenue recognition on long-term construction contracts in 20x7.This change had the following effects on earnings: Increase in earnings  All years retained earnings balances before 20x6 100,000
By what amounts are the beginning retained earnings balances for 20x6 and 20x7 adjusted, if the 20x6 and 20x7 statements are shown comparatively.

Quizplus · Accepted Answer

The Answer of A firm changed from completed contract to percentage of completion for revenue recognition on long-term construction contracts in 20x7.This change had the following effects on earnings: Increase in earnings  All years retained earnings balances before 20x6 100,000
By what amounts are the beginning retained earnings balances for 20x6 and 20x7 adjusted, if the 20x6 and 20x7 statements are shown comparatively.

A Firm Changed from Completed Contract to Percentage of Completion