M Mullins Company is in the process of closing its books at the end of 2020. The company's preliminary income statement for 2020 and its reported income statement for 2019 are given below. Sales Revenues Cost of Goods Sold Gross Profit Depreciation Other Expenses Net Income 2020 900,000 432,000 468,000 (115,000) (108,000) 245.000 2019 880,000 1420,000) 460,000 (115,000) 102,000) 243.000 Mullins's records reveal the following information: (1) Mullins failed to accrue $9,000 of commissions expense at the end of 2019. The supplies expense was recorded as paid in 2020. (2) On 1/1/18, Mullins purchased a machine for $150,000. 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 2020, Mullins 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 2018 2019 2020 FIFO 410,000 420,000 432,000 Average 430,000 425,000 450,000 Year 2018 2019 2020 FIFO 410.000 420,000 432,000 Average 430,000 425,000 450,000 (4) Mullins acquired a machine on 1/3/18 for $90,000 and estimated its useful life to be 6 years with a salvage value of $15,000. In 2020, after the preliminary statements were prepared, Mullins 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. Required: A. Prepare the necessary journal entries at December 31, 2020, 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 2019 was $2,295,000 and at the end of 2018 was $2,112,000. Dividends of $60,000 were declared in each year. Prepare comparative statements of retained earnings for Mullins Company for 2020 and 2019, reflecting appropriate adjustments from items (1)-(4) above, ignoring income taxes