During 2019 (its first year of operations) and 2020, Fieri Foods used the FIFO inventory costing method for both financial reporting and tax purposes. At the beginning of 2021, Fieri decided to change to the average method for both financial reporting and tax purposes. Income components before income tax for 2019, 2020, and 2021 were as follows:

($ in millions)	2019			2020			2021
Revenues	$	580		$	590		$	620
Cost of goods sold (FIFO)		(58	)		(60	)		(66	)
Cost of goods sold (average)		(92	)		(96	)		(102	)
Operating expenses		(322	)		(330	)		(334	)

Dividends of $39 million were paid each year. Fieris fiscal year ends December 31.

Required: 1. Prepare the journal entry at the beginning of 2021 to record the change in accounting principle. (Ignore income taxes.) 2. Prepare the 20212020 comparative income statements. 3. & 4. Determine the balance in retained earnings at January 1, 2020 as Fieri reported using FIFO method and determine the adjustment of balance in retained earnings as on January 1, 2020 using average method instead of FIFO method.

For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acquired at the beginning of 2018 for $2,800,000. Its useful life was estimated to be six years with a $220,000 residual value. At the beginning of 2021, Clinton decides to change to the straight-line method. The effect of this change on depreciation for each year is as follows:

	($ in thousands)
Year	Straight-Line				Declining Balance				Difference
2018		$	430			$	933			$	503
2019			430				622				192
2020			430				415				(15	)
		$	1,290			$	1,970			$	680

Required: 2. Prepare any 2021 journal entry related to the change. (Enter your answers in dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)