Described below are five independent and unrelated situations involving accounting changes.
Assume for each situation that it is 2021. Therefore, your solution and any entries
will be prepared for 2021.
Also assume that it is before any adjusting entries or closing entries were made in 2021.
Ignore income tax effects.
REQUIRED: For each situation below:
	A	Identify the type of change.
	B	Identify if a Retrospective, Modified Retrospective, or Prospective is needed.
	C	Prepare the journal entry necessary due to the situation, as well as any
		adjusting entry needed in 2021.

1	On January 1, 2018, Mackey Company purchased office equipment at a cost of $240,000.
	The company determined the useful life to be 10 years with $20,000 residual value.
	In 2021, the company adjusted the total useful life to 15 years with no residual value.
2	Sam's Sheds produces back yard storage sheds. In 2020 Sam's began providing a
	one year warranty. The warranty costs were expected to be approximately 2%
	of sales revenue. Sales in 2020 were $2,000,000. Because the waranty was
	new to Sam's business, no accrual entry was made in 2020.
	During 2020, the company paid and expensed $10,000 of warranty costs.
3	Gibson Ironworks converted from the LIFO method of inventory to the FIFO method of
	inventory on January 1, 2021. Based on computations the December 31, 2020 ending
	inventory under FIFO would have been $300,000. The year end 2021 financial
	statements showed ending inventory at $50,000 under the LIFO method.
4	On December 31, 2020, Star Supply Company performed an inventory count and
	determined ending inventory to be $150,000. In March 2021, the accounting intern
	noticed that $40,000 of inventory was in transit at year end. This inventory was
	being shipped FOB shipping point and was owned by Star during shipment.
	The inventory in shipment was not included in the $150,000 inventory amount.
5	In May of 2020, Wiener Express, Inc. was sued by the State of Wisconsin for
	producing hotdogs that did not meet state processing standards. During 2020,
	Wiener recorded a $100,000 debit to Litigation Expense and a credit
	to Litigation Liability based on an attorney estimate that a fine would be probable
	and the best estimate was $100,000. In 2021, Wiener's attorney
	revised the fine estimate to $75,000 due to continued discussion with the
	State of Wisconsin.