During 2019 its first year of operations) and 2020, Flen Foods used the FIFO inventory costing method for both financial reporting and tax purposes. At the beginning of 2021. Fler 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: (5 in millions Revenues Cost of goods sold (TO) Cost of goods sold (average) Operating expenses 2019 2020 2021 $53055570 (50) (55) (61) (82) (B6 (923 (302) (310 (314) Dividends of $34 million were paid each year Fen's fiscal year ends December 31 Required: 1. Prepare the journal entry at the beginning of 2021 to record the change in accounung principle (ignore Income taxes.) 2. Prepare the 2021-2020 comparative Income statements. 3.& 4. Determine the balance in retained earnings at January 1, 2020 as Fler 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. Complete this question by entering your answers in the tabs below. Reg 1 Red Req 3 and 4 Prepare the journal entry at the beginning of 2021 to record the change in accounting principle (Ignore income taxes.) (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions de 10,000,000 should be entered as 10).) View transaction at View journal entry worksho No General Journal Debit Credit 1 Date January 01, 202Retained earnings Inventory Reg 2 > tax purposes. At the beginning of 2021. Fler decided to change to the average method for both financial rep Income components before income tax for 2019, 2020 and 2021 were as follows: 2021 $570 ($ In millions) Revenges Cost of goods sold (FIED) Cost of goods sold Gaverage) Operating expenses 2019 553 (53) (82) 302) 2020 $ 540 (SS) (86) 019 (92) (14) Dividends of $34 million were paid each year Flert's fiscal year ends December 31 Required: 1. Prepare the journal entry at the beginning of 2021 to record the change in accounting principle. (Ignore Inco 2. Prepare the 2021-2020 comparative Income statements. 3. & 4. Determine the balance in retained earnings at January 1, 2020 as Fler reported using FIFO method an adjustment of balance in retained eamings as on January 1, 2020 using average method instead of FIFO meth Complete this question by entering your answers in the tabs below. Req Reg 2 Req 3 and 4 Determine the balance in retained earnings at January 1, 2020 as Fieri reported using FIFO method and determine adjustment of balance in retained earnings as on January 1, 2020 using average method instead of FIFO method. answers in millions de 10,000,000 should be entered as 10):) ($ in millions) Retained earnings balance previously reported using FIFO, Jan 1. 2020 Adjustment to balance for change in inventory methods Retained earnings balance using average method, Jan 1, 2020