The Pyramid Company has used the LIFO method of accounting for Inventory during its first two years of operation, 2019 and 2020 . At the beginning of 2021, Pyramid decided to change to the average cost method for both tax and financial reporting purposes. The following table presents information concerning the change for 2019-2021. The income tax rate for all years is 25%. Pyramid Issued 61,000$1 par, common shares for $260,000 when the business began, and there have been no changes In pald-In capital since then. Dividends were not pald the first year, but $10,000 cash dividends were paid in both 2020 and 2021 . Requlred: 1. Prepare the journal entry at January 1, 2021, to record the change in accounting principle. 2. Prepare the 2021-2020 comparative Income statements beginning with income before Income taxes. 3. Prepare the 2021-2020 comparative statements of shareholders' equity. [HInt: The 2019 statements reported retained earnings of $46,800. This is $62,400($62,40025%)]. Complete this question by entering your answers in the tabs below. Prepare the journal entry at January 1,2021 , to record the change in accounting principle. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Note: Enter debits before credits. The Pyramid Company has used the LIFO method of accounting for Inventory during its first two years of operation, 2019 and 2020 . At the beginning of 2021, Pyramid decided to change to the average cost method for both tax and financlal reporting purposes. The following table presents information concerning the change for 2019-2021. The Income tax rate for all years is 25%. Pyramid Issued 61,000$1 par, common shares for $260,000 when the business began, and there have been no changes in pald-In capital since then. Dividends were not pald the first year, but $10,000 cash dividends were paid in both 2020 and 2021. Requlred: 1. Prepare the Joumal entry at January 1,2021 , to record the change in accounting principle. 2. Prepare the 2021-2020 comparative Income statements beginning with Income before Income taxes. 3. Prepare the 2021-2020 comparative statements of shareholders' equlty. [HInt: The 2019 statements reported retained earnings of $46,800. This is $62,400($62,40025%)]. Complete this question by entering your answers in the tabs below. Prepare the 2021-2020 comparative income statements beginning with income before income taxes. (Round EPS answers to 2 decimal places.) repare the 2021-2020 comparative statements of shareholders' equity. [Hint: The 2019 statements reported retained earnings of $46,800. This is $62,400($62,40025%).] (Deductions should be indicated by a minus sign.)