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)	2022	2023	2024
Revenues	$ 530	$ 540	$ 570
Cost of goods sold (FIFO)	(53)	(55)	(61)
Cost of goods sold (average)	(82)	(86)	(92)
Operating expenses	(302)	(310)	(314)

Dividends of $34 million were paid each year. Fieris 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.