Part 1: Accounting change AND an accounting error create a scenario that assumes the company has had an accounting change and an accounting error the past year. Describe the scenario and explain how the financial statements would be affected. Address each situation separately (i.e. independent of each other). Be detailed and include numbers in the examples. Include any applicable journal entries.

For this portion I have decided I am going to switch methods from LIFO to FIFO. For the accounting error I am going to accidentally recording packaging as an expense instead of counting it as inventory.

Part 2: Change in investment value Assume the company has investments in debt securities. One is classified as a trading security and the other is classified as an available-for-sale security. Create a scenario where it is year end and the investments have changed in fair market value. Describe the scenario and explain how the financial statements would be affected. Be detailed and include numbers in the examples. Include any applicable journal entries.