Barney Corporation began business on January 1, 2011. The company has released the following financial statements for 2011 and 2012 and has prepared the following proposed statements for 2013.

Barney Corporation acquired the equipment for $150,000 on January 1, 2011, and began depreciating the equipment over a 10-year estimated useful life with no salvage value, using the straight-line method of depreciation. The capitalized exploration costs reflect oil and gas drilling costs that Barney has capitalized under the full cost method.
As of January 1, 2013, Barney has decided to make the following accounting changes.
(a) For justifiable reasons, Barney Corporation changed to the double-decliningbalance method of depreciation for the equipment as of January 1, 2013.
(b) For justifiable reasons, Barney Corporation changed from the full cost to the successful efforts method of accounting for oil and gas drilling costs as of January 1, 2013. Because none of Barney's drilling so far can be classified as "successful," all drilling costs would be expensed as incurred under the successful efforts method.
Instructions:
In 3-year comparative format, prepare the balance sheets, statements of income, and statements of retained earnings that would be reported in 2013 for the years 2011, 2012, and 2013. Barney has not yet paid any dividends. Make sure to correctly treat the accounting changes mentioned above. (Ignore any income tax effects.)

Barney Corporation Comparative Balance Sheets December 31 2013 2011 $249,000 60,000 150,000 (45,000) $414,000 $219,000 45,000 150,000 (30,000) $384,000 Cash $165,000 30,000 150,000 (15,000) $330,000 Equipment Total assets Liabilities and Stockholders' Equity Current liabilities Common stock Retained earnings $177,000 165,000 72,000 $414,000 $177,000 165,000 42,000 $384,000 $147,000 165,000 18,000 $330,000 Total liabilities and stockholders' equity Barney Corporation Comparative Income Statements For the Years Ended December 31 2012 2011 Sales Cost of goods sold Administrative expenses Amortization of capitalized exploration costs $315,000 $240,000 12,500 17,500 15,000 $285,000 30,000 $255,000 $189,000 28,000 5,000 $300,000 $225,000 12,500 15,000 $276,000 24,000 Total costs $237,000 Net income 18,000