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:

Dividends of $$38$ million were paid each year. Fieri$$s fiscal year ends December $31.$

Required:

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

Prepare the $2024-2023$ comparative income statements.

& $4.$ 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.

Complete this question by entering your answers in the tabs below.

Req $1$

Req $3$ and $4$

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

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Enter your answers in

millions $($i$.$e$.,10,000,000$ should be entered as $10).$