Lancer Company's preliminary income statement for 2021 and its reported income statement for 2020 are given below. Sales Revenues Cost of Goods Sold Gross Profit Depreciation Other Expenses Net Income 2021 1,350,000 1648,000) 702,000 (172,500) (162.000) 367.500 2020 1,320,000 1630.000 690,000 (172,500) (153.000) 364,500 Lancer's records reveal the following information: (1) Lancer neglected to record $8,000 of supplies expense at the end of 2020, so the supplies inventory was overstated at the end of 2020. Consequently, the supplies expense computed for 2021 included the additional amount of supplies used in 2020. (2) On 1/1/19, Lancer purchased a machine for 5120,000. Although the machine was expected to have an eight-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 2021, Lancer decided to change its inventory costing method from the FIFO costing method to the average costing method. An analysis of the accounting records provides the following cost of goods sold amounts under average cost and FIFO: Year 2019 2020 2021 FIFO Average 615,000 645,000 630,000 637,500 648,000 675,000 (4) Lancer acquired a machine on 1/3/19 for $100,000 and estimated its useful life to be 6 years with a salvage value of $10,000. In 2021, after the preliminary statements were prepared, Lancer 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 $5,000. Straight-line depreciation is being used. Required: A. Prepare the necessary journal entries at December 31, 2021, to record the above information. Lancer Company's preliminary income statement for 2021 and its reported income statement for 2020 are given below. Sales Revenues Cost of Goods Sold Gross Profit Depreciation Other Expenses Net Income 2021 1,350,000 1648,000) 702,000 (172,500) (162.000) 367.500 2020 1,320,000 1630.000 690,000 (172,500) (153.000) 364,500 Lancer's records reveal the following information: (1) Lancer neglected to record $8,000 of supplies expense at the end of 2020, so the supplies inventory was overstated at the end of 2020. Consequently, the supplies expense computed for 2021 included the additional amount of supplies used in 2020. (2) On 1/1/19, Lancer purchased a machine for 5120,000. Although the machine was expected to have an eight-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 2021, Lancer decided to change its inventory costing method from the FIFO costing method to the average costing method. An analysis of the accounting records provides the following cost of goods sold amounts under average cost and FIFO: Year 2019 2020 2021 FIFO Average 615,000 645,000 630,000 637,500 648,000 675,000 (4) Lancer acquired a machine on 1/3/19 for $100,000 and estimated its useful life to be 6 years with a salvage value of $10,000. In 2021, after the preliminary statements were prepared, Lancer 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 $5,000. Straight-line depreciation is being used. Required: A. Prepare the necessary journal entries at December 31, 2021, to record the above information