Described below are six Independent and unrelated situations involving accounting changes. Each change occurs during 2021 before any adjusting entries or closing entries were prepared Assume the tax rate for each company is 25% in all years. Any tax effects should be adjusted through the deferred tax liability account a Fleming Home Products introduced a new line of commercial awnings in 2020 that carry a one year warranty against manufacturer's defects Based on industry experience, warranty costs were expected to approximate 4% of sales Sales of the awnings in 2020 were $2,800,000. Accordingly, warranty expense and a warranty ability of $112,000 were recorded in 2020. In late 2021, the company's claims experience was evaluated, and it was determined that claims were for fewer than expected 3% of sales rather than 4 Sales of the awnings in 2021 were $3.300.000, and warranty expenditures in 2021 totaled $75075 On December 30, 2017 Rival Industries acquired its office building at a cost of $860000, it was depreciated on a straight line basis assuming a useful life of 40 years and no salvage value However plans were finalized in 2021 to relocate the company headquarters at the end of 2025 The vacated office building will have a salvage value at that time of $630,000 c. Hobbs-Bato Merchandisingine changed inventory cost methods to LIFO from FIFO at the end of 2021 for both financial statement and income tax purposes Under FIFO, the inventory at January 1 2021 5620000 d. At the beginning of 2018, the Hoffman Group purchased office equipment at a cost of $253,000. Its useful life was estimated to be 10 years with no olge value the equipment was deprecated by the sum of the year dois method on January , 2021 the company changed to the straight line method ein November 2019, the State of Minnesota filed suit against Huggins Manufacturing Company, seeking penalties for violations of clean air laws. When the financial statements were issued in 2020, Hd not reached a settlement with state authorities but legal counsel advised Hoogmo that it was probable the company would have to pay $130,000 in penalties Accordingly, the following entry was recorded 1. 130,00 Latem 2021 a settlement was reached with state authories to pay a total of $273.000 in penalties At the beginning of 2021. Jantzen Specialties, which the sum of the years digits method changed to the straight line method for newly acquired buildings and equipment The change ind current year net angs by $308000 q For each situation 1. Identity the type of change. 2. Prepare any journal entry necessary as a direct result of the change, as well as any adjusting entry for 2021 related to the situat described Complete this question by entering your answers in the tabs below. Required: Required ? Prepare any joumal entry necessary as a direct result of the change, as well as any adjusting entry for 2021 related to the situation described. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field) View transaction list Journal entry worksheet 1 5 5 7 8 11 Record journal entry as a direct result of the change. Gonaloumel Toportion 010 Dahit reque. For each situation 1. Identify the type of change 2. Prepare any Journal entry necessary as a direct result of the change, as well as any adjusting entry for 2021 related to the situation described Complete this question by entering your answers in the tabs: Islom. Required 1 Required 2 Prepare any Journal entry necessary as a direct result of the change, as well as any adjusting entry for 2021 related to the situation described. (Il nometry is required for a transaction/event, select "no Joumal entry required in the first account. Vold) View transactions Journal entry worksheet Record adjusting entry for change in warranty Hinter debit before credits Gonnal Journal Crodli Det 99 000 az Warranty one Warranty ability 99.000 que For each situation 1. Identify the type of change 2. Prepare any joumal entry necessary as a direct result of the change, as well as any adjusting entry for 2021 related to the situation described Complete this question by entering your answers in the tabs below. Required: Required 2 Prepare any journal entry necessary as a direct result of the change, as well as any adjusting entry for 2021 related to the situation described. (ir no entry le required for a transactio/event, select "No journal entry required in the first account field.) View transaction tist Journal entry worksheet Record the adjusting entry for change in Inventory cont method. Hit Enter det for credits Credli nuyu , For each situation 1. Identify the type of change 2. Prepare any journal entry necessary as a direct result of the change, as well as any adjusting entry for 2021 related to the situation described Complete this question by entering your answers in the tabs below Required 1 Required 2 Prepare any journal entry necessary as a direct result of the change, as well as any adjusting entry for 2021 related to the situation described. ( no entry is required for a transaction/event, select "No journal entry required in the list account fold.) View transaction ist Journal entry worksheet + B Record journal entry as a direct result of the change, 6 3 11 Note: Enter debit before credite General Journal Debit Credit Transaction 1) Y. For each situation 1. Identify the type of change 2. Prepare any joumal entry necessary as a direct result of the change, as well as any adjusting entry for 2021 related to the situation described Complete this question by entering your answers in the tabs below. Required Required 2 Prepare any journal entry necessary as a direct result of the change, as well as any adjusting entry for 2021 related to the station described. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field) View transaction list Journal entry worksheet Record the adjusting entry for change in depreciation method from sum-of- the years -digits method to straight-line method. Noite Enter debts bore credite Transaction Soumal Crode Described below are six independent and unrelated situations involving accounting changes. Each change occurs during 2021 before any adjusting entries or closing entries were prepared Assume the tax rate for each company is 25% in all years. Any tax effects should be adjusted through the deferred tax liability account a. Fleming Home Products introduced a new line of commercial awnings in 2020 that carry a one-year warranty against manufacturers defects. Based on industry experience, warranty costs were expected to approximate 4% of sales. Sales of the awnings in 2020 were $2,800,000. Accordingly, warranty expense and a warranty liability of $112.000 were recorded in 2020. In late 2021, the company's claims experience was evaluated, and it was determined that claims were far fewer than expected 3% of sales tather than 4% Sales of the awnings in 2021 were $3.300.000, and warranty expenditures in 2021 totaled $75,075, B. On December 30, 2017 Rival Industries acquired its office building at a cost of $860,000. It was depreciated on a straight line basis assuming a useful life of 40 years and no salvage value. However plans were finalized in 2021 to relocate the company headquarters at the end of 2025 The vacated office building will have a salvage value at that time of $630,000 c. Hobbs-Bato Merchandising, Inc. changed inventory cost methods to LIFO from FIFO at the end of 2021 for both financial statement and income tax purposes Under FIFO the inventory at January 1, 2021 is $620.000. d. At the beginning of 2018, the Hoffman Group purchased office equipment at a cost of $253000. Its useful life was estimated to be 10 years with no salvage value. The equipment was depreciated by the sum-of-the-years-digits method On January 1, 2021 the company changed to the straight line method ein November 2019, the State of Minnesota filed suit against Huggins Manufacturing Company, seeking penalties for violations of clean air laws. When the financial statements were issued in 2020 Huggins had not reached a settlement with state authorities, but legal counsel advised Huggins that it was probable the company would have to pay $130,000 in penalties. Accordingly, the following entry was recorded 1. At the beginning of 2021. Jantzen Specialties, which uses the sum-of-the-years-digits method, changed to the straight-ne method for newly acquired buildings and equipment. The change increased current year net earnings by $368,000. Required: For each situation 1. Identify the type of change 2. Prepare any journal entry necessary as a direct result of the change, as well as any adjusting entry for 2021 related to the situation described Complete this question by entering your answers in the tabs below. Required: Required 2 Prepare any Journal entry necessary as a direct result of the change, as well as any adjusting entry for 2021 related to the situation described in any w regulad for a transaction/event, select "No journal entry required in the first account feld) Views Journal entry worksheet 11 1 Record tournal entry as direct result ot the change Debit Crede Transaction , General Journal Next > Journal entry worksheet 7 8 11 EEE. Record adjusting entry for change in warranty. Note: Enter debits before credits Transaction a 2 Credit General Journal Warranty expense Warranty liability Debit 99.000 99.000 RA Journal entry worksheet Record adjusting entry for depreciation. Note: Enter debits before credits Transaction b[2) Debit Credit General Journal Depreciation expense Accumulated depreciation Record Cheaty View all Prepare any journal entry necessary as a direct result of the change, as well as any adjusting entry for 20 described. (If no entry is required for a transaction/event, select "No journal entry required" in the first ac View transaction list Journal entry worksheet Record adjusting entry for depreciation. Note: Enter debts before credits Transaction 0:2) General Journal Debit Credit Prepare any journal entry necessary as a direct result of the change, as well as any adjusting entry for described. (If no entry is required for a transaction/event, select "No journal entry required" in the first a View transaction list Journal entry worksheet Record journal entry as a direct result of the change. Note: Enter debits before credito Transaction General Journal Debit Credit Ya epare any journal entry necessary as a direct result of the change, as well as any adjusting entry for 2021 scribed. (If no entry is required for a transaction/event, select "No journal entry required" in the first acco View transaction list Journal entry worksheet 5 6 8 9 10 11 Record journal entry as a direct result of the change. Note: Enter debits before credits Transaction General Journal Debit Credit Clementy View general formal Prepare any journal entry necessary as a direct result of the change, as well as any adjusting entry for 20 described. (If no entry is required for a transaction/event, select "No journal entry required" in the first ac View transaction list Journal entry worksheet 6 7 8 9 10 Record the adjusting entry for change in depreciation method from sum-of- the-years'-digits method to straight-line method. Note: Enter debits before credits General Journal Transaction $12) Debit Credit Reconenty Ckan View general Journal