REQUIRED JE:

a. Record entry necessary as a direct result of the change or error correction.

b. Record adjusting journal entry if needed for 2016.

c. Record entry necessary as a direct result of the change or error correction.

d. Record adjusting journal entry if needed for 2016.

e. Record entry necessary as a direct result of the change or error correction.

f. Record adjusting journal entry if needed for 2016.

g. Record entry necessary as a direct result of the change or error correction.

h. Record adjusting journal entry if needed for 2016.

Whaley Distributors is a wholesale distributor of electronic components. Financial statements for the years ended December 31, 2014 and 2015, reported the following amounts and subtotals (S in millions): Shareholders Net Assets Liabilities Income Expenses 2014 $650 2015 730 $285 355 $365 375 $165 185 $141 166 In 2016 the following situations occurred or came to light a. Internal auditors discovered that ending inventories reported on the financial statements the two previous years were misstated due to faulty internal controls. The errors were in the following amounts 2014 inventory Overstated by 11.1 million 2015 inventory Understated by S 9.1 million b. A liability was accrued in 2014 for a probable payment of $5.2 mllion in connection with a lawsuit ultimately settled in December 2016 for $3.1 million Apatent costing $12.6 million at the beginning of 2014, expected to benefit operations for a total of six years, has not been amortized since acquired c. d. Whaley's conveyer equipment was depreciated by the sum-of-the-years'-digits (SYD) basis since it was acquired at the beginning of 2014 at a cost of $16.5 million. It has an expected useful life of five years and no expected residual value. At the beginning of 2016, Whaley decided to switch to straight-line depreciation. Required For each situation Prepare any journal entry necessary as a direct result of the change or error correction as well as any adjusting entry for 2016 related to the situation described. (Ignore tax effects.) (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5)) 1