Molina Company's reported net incomes for 2018 and the previous two years are presented below.

2018	2017	2016
$105,000	$95,000	$70,000

2018's net income was properly determined after giving effect to the following accounting changes, error corrections, etc. which took place during the year. The incomes for 2016 and 2017 do not take these items into account and are stated at the amounts determined in those years. Ignore income taxes.

Instructions

For each of the six accounting changes, errors, or prior period adjustment situations described below, prepare the journal entry or entries Molina Company should record during 2018. If no entry is required, write "none"

After recording the situation in part (a) above, prepare the year-end adjusting entry for December 31, 2018. If no entry, write "none"

Early in 2018, Molina determined that equipment purchased in January, 2016 at a cost of $1,290,000, with an estimated life of 5 years and salvage value of $90,000 is now estimated to continue in use until December 31, 2022 and will have a $30,000 salvage value. Molina recorded its 2018 depreciation at the end of 2018.

Molina determined that it had understated its depreciation by $20,000 in 2017 owing to the fact that an adjusting entry did not get recorded.

Molina bought a truck January 1, 2015 for $80,000 with a $8,000 estimated salvage value and a six-year life. The company debited an expense account and credited cash on the purchase date. The truck is expected to be traded at the end of 2020. Molina uses straight-line depreciation for its trucks.

During 2018, Molina changed from the straight-line method of depreciating its cement plant to the double-declining-balance method. The following calculations present depreciation on both bases. (Ignore income taxes.) The 2018 amount applies double-declining balance to the 1/1/18 carrying amount after straight-line was used.

	2018	2017	2016
Straight-line	$100,000	$100,000	$100,000
Double-declining	$200,000	$160,000	$200,000

Molina, in reviewing its provision for uncollectibles during 2018, has determined that 1/2 of 1% is the appropriate amount of bad debt expense to be charged to operations. The company had used 1% as its rate in 2017 and 2016 when the expense had been $20,000 and $14,000, respectively. The company would have recorded $50,000 of bad debt expense on December 31, 2018 under the old rate.

During 2018, Molina decided to change from the LIFO method of valuing inventories to average cost. The net incomes involved under each method were as follows:

	2018	2017	2016
LIFO	$51,000	$59,000	$42,000
Average Cost	$63,000	$67,000	$49,000

Assume no difference between LIFO and average cost inventory values in years prior to 2016.