During $2022($its first year of operations$)$ and $2023,$ Fieri Foods used the FIFO inventory costing method for both financial reporting and tax purposes. At the beginning of $2024,$ Fieri decided to change to the average method for both financial reporting and tax purposes.

Income components before income tax for $2022,2023,$ and $2024$ were as follows:

$($$ in millions$)202220232024$

Revenues $ $390$ $ $400$ $ $430$

Cost of goods sold $($FIFO$)(39)(41)(47)$

Cost of goods sold $($average$)(54)(58)(64)$

Operating expenses $(246)(254)(258)$

Dividends of $$20$ million were paid each year. Fieri$$s fiscal year ends December $31.$

Required:

$1.$ Prepare the journal entry at the beginning of $2024$ to record the change in accounting principle. $($Ignore income taxes.$)$

$2.$ Prepare the $20242023$ comparative income statements.

$3.$ & $4.$ Determine the balance in retained earnings at January $1,2023,$ as Fieri reported using FIFO method and determine the adjustment of balance in retained earnings as on January $1,2023$ using average method instead of FIFO method.