Presented below are the comparative statements for the Andreza Cardoso Pinto Company Ltd$.$

Sales

$2024$

$2023$

Cost of Goods Sold

$ $1,400,000$

$ $1,100,000$

Gross Margin

$700,000$

$520,000$

$ $700,000$

Operating Expenses

$ $580,000$

$150,000$

Depreciation Expenses

$100,000$

$?$

$175,000$

Net Income

$

$ $305,000$

On December $3151,2024,$ before the books were closed, the management and the accountant Samual ElMalLevy of the Andreza Cardoso Pinto Company Ltd$.$ made the following determination about three depreciable assets:

$1.$ Depreciable asset A was purchased January $181,2019.$ It originally cost $$2,500,000$ and, for depreciation purposes, the straight line method was originally chosen. The asset was originally expected to be useful for $25$ years and have a zero residual value. In $2024,$ the decision was made to change depreciation method from the straight$-$line to the double declining method, and the estimates relating to the useful life and the residual value remained unchanged $($assume a change in policy$).$

II$.$ Depreciable asset B was purchased January $1$st$,$

$,2020.$ It originally cost $$720,000$ and for

depreciation purposes, the straight$-$line method was chosen. The asset originally expected to be useful for $15$ years and have a zero residual value. In $2024,$ the decision was made to shorten the total life of this asset to $9$ years and the residual value changed to $$28,000.$

$111.$ Depreciable asset C was purchased January $19$t

$,2020.$ The asset's original cost was

$$350,000$ and this amount was entirely expensed in $2020.$ This particular asset has a $10-$year useful life and no residual value. The straight$-$line method was chosen for depreciation purposes.

Additional information:

$1.$ In $2024,$ the company discovered that the ending inventory for $2023$ was overstated by $$30,000,$ ending inventory for $2024$ was incorrectly overstated by $$45,000.$

$2.$ The Company had beginning Retained Earnings of $$360,000$ as at December $319$t

$,2023$

Dividends paid were $$60,000$ in $2023$ and $$80,000$ in $2024.$

$3.$ The books had not been closed

Required:

$1.$ Prepare the revised Income Statement and Retained Earnings Statement for $2024$ and

$2023,$ assuming comparative statements.

$2.$ Prepare the compound journal entry to record the change in accounting method$/$errors in

$2024,$ and to adjust the inventory error.

Use format debit and credit.