4. B. Prepare Shannon’s 2015 journal entry to record entry the change in accounting principle.

(credit
account titles are automatically indented when amount is entered. Do not indent manually. If on entry is
required,select ‘’ No Entry ‘’ for the account tittles and enter 0 for the amounts.)

Account Titles and Explanation Debit Credit

Inventory 120000
0
Deferred Tax Liability 48000
0
Retained Earnings 72000
0