Jupiter Electric Company provided the following financial statement information for 2018 before considering the accounting changes that follow:

Retained earnings, January 1, 2018	$ 49,540
Sales	308,000
Selling and administrative expenses	54,000
Cash dividends declared	15,000
Cost of goods sold (weighted-average cost)	182,000
Interest income	3,300
Interest expenses	8,200

• The company failed to record $7,000 interest expense on a zero-coupon bond in 2014. The bonds are still outstanding.

• The company changed its accounting method to FIFO from the weighted-average method in 2018. Beginning inventory would have been $3,000 higher and cost of goods sold would have been $3,000 lower in 2018 using FIFO.

• Bad debt expense is included in selling and administrative expenses on the income statement. Jupiter uses the percentage of accounts receivable method of estimating bad debt expense. At December 31, 2018, the Allowance for Uncollectible Accounts is $5,280 (credit balance), based on the estimates of uncollectible accounts for the quarterly financial statements. At December 31, 2018, the company now believes the quarterly estimates were too high and the Allowance for Uncollectible Accounts should be $2,640 with a credit balance.

• Jupiter's tax rate is 40 %.

Required

a. Prepare the journal entries 10 record the accounting changes made in 2018.

b . Compute the cumulative effect of the accounting changes made in 2018.

c. Prepare the multiple-step income statement for Jupiter for the year ended December 31, 2018.

d. Prepare the footnote disclosures required for the accounting changes made in 2018.

e. Prepare the retained earnings column of the statement of stockholders' equity for the year ended December 31. 2018.