GIVE ALL CALCULATIONS AND ANSWERS OR I WILL THUMBS DOWN. Lexington Company is in the process of closing its books at the end of $2023.$ The company's preliminary income statement for $2023$

and its reported income statement for $2022$ are given below.

$20232022$

Sales Revenues $800,000780,000$

Cost of Goods Sold $(432,000)(420,000)$

Gross Profit $368,000360,000$

Depreciation $(95,000)(95,000)$

Other Expenses $(118,000)(112,000)$

Net Income $155,000153,000$

Lexington's records reveal the following information:

$(1)$ Lexington failed to accrue $$9,000$ of salaries and wages expense at the end of $2022.$ The salaries and wages expense was recorded as paid in $2023.$

$(2)$ On $1/1/21,$ Lexington purchased a machine for $$160,000.$ Although the machine was expected to have a five$-$year life, it was erroneously

expensed in recording the purchase. The appropriate depreciation method for this machine is double$-$declining$-$balance with no residual.

$(3)$ At the end of $2023,$ Lexington decided to change its inventory costing method from the FIFO costing method to the average cost method.

An analysis of the accounting records provides the following cost of goods sold amounts under average cost and FIFO:

Year FIFO Average

$2020410,000430,000$

$2022420,000425,000$

$2023432,000450,000$

$(4)$ Lexington acquired a machine on $1/3/21$ for $$120,000$ and estimated its useful life to be $6$ years with a salvage value of $$15,000.$ In $2023,$

after the preliminary statements were prepared, Lexington realized that the machine could be used for an additional $5$ years, but that the

salvage value at the end of that time would probably be only $$10,000.$ Straight$-$line depreciation is being used for this asset.

Required:

A$.$ Prepare the necessary journal entries at December $31,2023,$ to record the above information.

B$.$ Prepare new comparative income statements to reflect the adjustments required $(1)$ through $(4)$ above. You may ignore income taxes.

C$.$ Retained earnings reported for the end of $2022$ was $$2,295,000$ and at the end of $2021$ was $$2,202,000.$ Dividends of $$60,000$ were

declared in each year. Prepare comparative statements of retained earnings for Lexington Company for $2023$ and $2022,$ reflecting

appropriate adjustments from items $(1)-(4)$ above, ignoring income taxes.