Required information would have been if the switch from LIFO had not occurred. Statement of Shareholders' Equity Reports changes that occur in each shareholders' equity account starting with the beginning balances in the earliest year reported Knowledge Check 01 Melas Company changed from the LIFO to the FIFO inventory costing method on January 1, Year 3. Invento year since the inception of the company are as follows: FIFO LIFO Year 1 $195,000 $177,500 Year 2 390,000 355,000 Ignoring income tax considerations, prepare the appropriate journal entry, dated January 1, Year 3, to report this accounting change. ( no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list Journal entry worksheet