1-Accounting Changes and Error Corrections Molina Company's reported net incomes for 2011 and the previous two years are presented below. 2011 105,000 2010 95,000 2009 70,000 2011's net income was properly determined after giving effect to the following accounting changes, error corrections, etc. which took place during the year. The incomes for 2009 and 2010 do not take these items into account and are stated at the amounts determined in those years. Ignore income taxes. Instructions: a. For each of the six accounting changes and/or errors described below, prepare the journal entry or entries Molina Company should record during 2011 to adjust for the change and/or error. If no entry is required, write "none." b. After recording the situation in part (a) above, prepare the year-end adjusting entry for December 31, 2011. If no entry is required, write "none." 4. During 2011, Molina changed from the straight line method of depreciating its cement plant to the double-declining-balance method. The following calculations present depreciation on both bases. (ignore income taxes.) The 2011 amount applies double-declining balance to the 1/1/11 carrying amount after straight-line was used. straight line 2011 100,000 2010 100,000 2009 100,000 Double-declining 2011 200,000 2010 160,000 2009 200,000 5. Molina, in reviewing its provision for uncollectibles during 2011, has determined that of 1% is the appropriate amount of bad debt expense to be charged to operations. The company had used 1% as its rate in 2010 and 2009 when the expense had been $20,000 and $14,000, respectively. The company would have recorded $30,000 of bad debt expense on December 31, 2011 under the old rate. 6. During 2011, Molina decided to change from the LIFO method of valuing inventories to average cost. The net incomes involved under each method were as follows: LIFO 2011 51,000 2010 59,000 2009 42,000 Average Cost 2011 63,000 2010 69,000 2009 48,000 Assume no difference between LIFO and average cost inventory values in years prior to 2009