Provide a separate answer for each of the 4 cases covering the following(Assume they are not related, it is Dec 31st 2019)

1. Type of accounting change.

2. Manner of reporting the change under current generally accepted accounting principles including

a discussion, where applicable, of how amounts are computed.

3. Effect of the change on the balance sheet and income statement.

4. Footnote disclosures that would be necessary.

Case 1- Mike Company has been using the cash method for their business accounting records since 2013. In Dec of 2019, the company wants to get a loan and the company's new accountant has determined that they need to change to accrual accounting to insure loan approval.

Case 2 -Mike's company's previous accountant recorded $500,000, received on April of 2018 as revenue. It represented an advance payment for a 2 year service contract starting May 1st of 2018.

Case 3- Mike's company received a bill on Dec 1st 2016 from workers compensation indicating that they had mis-classified their employees and would have to pay fines of $400,000. After discussing it with an attorney, the company was told that they would have to pay between $150,000 to $300,000 for the violation. When the financial statements were issued in 2016, a settlement had not been made with state authorities, so they accrued a contingent liability of $150,000. Late in 2019, a settlement was reached with state authorities to pay a total of $350,000 in penalties.

Case 4 The company had originally purchased 15% of company A's stock in 2018 and in 2019 they purchased an additional 45% of company A's stock.