The Cecil-Booker Vending Company changed its method of valuing inventory from the average cost method to the FIFO cost method at the beginning of 2013. At December 31, 2012, inventories were $115,000 (average cost basis) and were $119,000 a year earlier. Cecil-Booker’s accountants determined that the inventories would have totaled $145,000 at December 31, 2012, and $150,000 at December 31, 2011, if determined on a FIFO basis. A tax rate of 40% is in effect for all years.

One hundred thousand common shares were outstanding each year. Income from continuing operations was $350,000 in 2012 and $475,000 in 2013. There were no extraordinary items either year.

Required:

1. Prepare the journal entry to record the change in accounting principle. (If no entry is required for a particular event, select "No journal entry required" in the first account field

2. Prepare the 2013–2012 comparative income statements beginning with income from continuing operations. Include per share amounts.