Presented below are the comparative statements for the Rana Asifi Company Ltd$.$

$20242023$

Sales $..................................................................................$ $ $2,000,000$ $ $1,600,000$

Cost of Goods Sold $...........................................................1,000,000700,000$

Gross Margin $.....................................................................$ $ $1,000,000$ $ $900,000$

Operating Expenses $..........................................................200,000150,000$

Depreciation Expenses $.....................................................?250,000$

Net Income $........................................................................$ $ $?$ $ $500,000$

On December $31$st$,2024,$ before the books were closed, the management and the accountant Samual ElMalLevy of the Rana Asifi Company Ltd$.$ made the following determination about three depreciable assets:

Depreciable asset A was purchased January $1$st$,2019.$ It originally cost $$3,500,000$ 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$).$

Depreciable asset B was purchased January $1$st$,2020.$ It originally cost $$1,050,000$ and for depreciation purposes, the straight$-$line method was chosen. The asset originally expected to be useful for $15$ years and have a zero residual value. In $2024,$ the decision was made to shorten the total life of this asset to $9$ years and the residual value changed to $$70,000.$

Depreciable asset C was purchased January $1$st$,2020.$ The asset$$s original cost was $$500,000$ 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:

In $2024,$ the company discovered that the ending inventory for $2023$ was overstated by $$45,000$; ending inventory for $2024$ was incorrectly overstated by $$65,000.$

The Company had beginning Retained Earnings of $$500,000$ as at December $31$st$,2023.$ Dividends paid were $$90,000$ in $2023$ and $$110,000$ in $2024.$

The books had not been closed.

Prepare the revised Income Statement and Retained Earnings Statement for $2024$ and $2023,$ assuming comparative statements.

Prepare the compound journal entry to record the change in accounting method$/$errors in $2024,$ and to adjust the inventory error.

Please Use Format Below to Answer the Required Entries:

Description$/$Account

Debit

Credit