7. 1. 25 pts Cotton Company has the following balance sheets and retained earnings statements 9 2022 2021 10 Cash $10,000 $15.000 11 Receivables 15,000 10,000 12 Inventories (FIFO) 18,000 23,000 13. Other Assets 40.000 15,000 14 583,000 $63,000 15 15 Capital Stock $40,000 $30,000 17 Retained Earnings 43.000 33.000 18 583,000 $63,000 19 20 21 Retained Earningslan 1 533,000 $35,000 22 Income 15,000 12.000 23 Dividends -5.000 14.000 24 Retained Earnin Dec 31 543,000 $33,000 25 26 The above incomes and Retained Earnings balances are based on FIFO Cost of Goods Sold 2 Cotton changed from FIFO to LIFO on January 1, 2022. December 31, 2022 inventory at LIFO is $17,000 white December 31, 2021 inventory at UFO is $21,000 28 Inventory at January 1, 2021 was zero 29 30. Prepare statements in the format above assuming 2022 wil be shown by itself without reference to 2021. 31 32 141 42 b. Journalize the change to LIFO at January 1, 2022. 43 44 7. 1. 25 pts Cotton Company has the following balance sheets and retained earnings statements 9 2022 2021 10 Cash $10,000 $15.000 11 Receivables 15,000 10,000 12 Inventories (FIFO) 18,000 23,000 13. Other Assets 40.000 15,000 14 583,000 $63,000 15 15 Capital Stock $40,000 $30,000 17 Retained Earnings 43.000 33.000 18 583,000 $63,000 19 20 21 Retained Earningslan 1 533,000 $35,000 22 Income 15,000 12.000 23 Dividends -5.000 14.000 24 Retained Earnin Dec 31 543,000 $33,000 25 26 The above incomes and Retained Earnings balances are based on FIFO Cost of Goods Sold 2 Cotton changed from FIFO to LIFO on January 1, 2022. December 31, 2022 inventory at LIFO is $17,000 white December 31, 2021 inventory at UFO is $21,000 28 Inventory at January 1, 2021 was zero 29 30. Prepare statements in the format above assuming 2022 wil be shown by itself without reference to 2021. 31 32 141 42 b. Journalize the change to LIFO at January 1, 2022. 43 44