Technology Solutions, Inc. adopted the percentage-of-completion method when it began operations on JJanuary 1, 2013. The company elected to change to the completed-contract method on JanuaryJanuary 1, 20152015 , due to a change in the size of its computer network contracts. Net income under both methods for the first three years of the company's operations is presented in the following table. Ignore income tax effects.

Requirement a. Prepare the journal entry required to record the accounting change on January 1, 2015. (Record debits first, then credits. Exclude explanations from any journal entries.)

Requirement b. Prepare the footnote to disclose the change from the percentage-of-completion to the completed-contract method. Designate the note as "Note A: Change in Method of Accounting for Computer Network Contracts."

Note A: Change in Method of Accounting for Computere Network Contracts. On January 1 of the current year, the Company changed its method of accounting for computer network contracts from the percentage-of-completion method to the completed-contract method. The new method of accounting is considered preferable because it better reflects changes in the nature of the Company's operations. Comparative financial statements have been adjusted to apply the new method Prospectively OR retrospectively Net income is increased or decreased by $______ and $______ for the years ended December 31, 2014 and 2013 respectively. As a result of the change to the completed-contract method, net income for the current year is ______by $ ______as compared to the results obtained if the percentage-of-completion method was still used. Construction in progress has been increased or decreased by $ _________as of the beginning of the current year. The cumulative effect of the change is to reduce beginning retained earnings by $ . The accounting change in principle is reported Prospectively OR retrospectively

Net Income Information

Net Income Percentage of Completed Year Ended Completion Contract 161,000 141,000 December 31, 2013 December 31, 2014 96,000 117,000 220,000 December 31, 2015 234,000 Print Done