During 2022 (Its first year of operations) and 2023 , FlerI Foods used the FIFO Inventory costing method for both financial reporting and tax purposes. At the beginning of 2024 , Flerl decided to change to the average method for both financlal reporting and tax purposes. Income components before Income tax for 2022,2023 , and 2024 were as follows: Dividends of $38 million were pald each year. Fierl'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 2024-2023 comparative Income statements. 3. \& 4. Determine the balance In retained earnings at January 1, 2023, as Fierl 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. 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). Journal entry worksheet During 2022 (Its first year of operations) and 2023 , FlerI Foods used the FIFO Inventory costing method for both financial reporting and tax purposes. At the beginning of 2024 , Flerl 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 pald each year. Fierl's fiscal year ends December 31. Required: 1. Prepare the journal entry at the beginning of 2024 to record the change in accounting principle. (lgnore income taxes.) 2. Prepare the 2024-2023 comparatlve Income statements. 3. \& 4. Determine the balance in retained earnings at January 1, 2023, as Fierl 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. Prepare the 2024-2023 comparative income statements. Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10). During 2022 (Its first year of operations) and 2023 , FlerI Foods used the FIFO Inventory costing method for both financial reporting and tax purposes. At the beginning of 2024, Flerl 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. Fierl's fiscal year ends December 31 . Requlred: 1. Prepare the journal entry at the beginning of 2024 to record the change in accounting principle. (Ignore income taxes.) 2. Prepare the 2024-2023 comparatlve income statements. 3. \& 4. Determine the balance in retained earnings at January 1, 2023, as Fierl 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. 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. Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10). For financlal reporting, Kumas Poultry Farms has used the decilning-balance method of depreclation for conveyor equipment acquired at the beginning of 2021 for $2,816,000. Its useful life was estimated to be six years with a $224,000 residual value. At the beginning of 2024 , Kumas decides to change to the straight-IIne method. The effect of this change on depreclation for each year is as follows: Required: 2. Prepare any 2024 journal entry related to the change. Note: Enter you answers rounded to the nearest dollar. If no entry is required for a transaction/event, select "No journal entry required" In the first account fleld.) Journal entry worksheet Record the adjusting entry for depreciation in 2024. Note: Enter debits before credits
