Fantasy Fashions had used the LIFO method of costing inventories, but at the beginning of 2024 decided to change to the FIFO method. The inventory as reported at the end of 2023 using LIFO would have been $24 million higher using FIFO.

Retained earnings reported at the end of 2022 and 2023 was $244 million and $264 million, respectively (reflecting the LIFO method). Those amounts reflecting the FIFO method would have been $254 million and $276 million, respectively. 2023 net income reported at the end of 2023 was $32 million (LIFO method) but would have been $34 million using FIFO. After changing to FIFO, 2024 net income was $40 million. Dividends of $9 million were paid each year. The tax rate is 25%.

Fantasy Fashions had used the LIFO method of costing inventories, but at the beginning of 2024 decided to change to the FIFO method. The inventory as reported at the end of 2023 using LIFO would have been $24 million higher using FIFO. Retained earnings reported at the end of 2022 and 2023 was $244 million and $264 million, respectively (reflecting the LIFO method). Those amounts reflecting the FIFO method would have been $254 million and $276 million, respectively. 2023 net income reported at the end of 2023 was $32 million (LIFO method) but would have been $34 million using FIFO. After changing to FIFO, 2024 net income was $40 million. Dividends of $9 million were paid each year. The tax rate is 25%. Required: 1. Prepare the journal entry at the beginning of 2024 to record the change in accounting principle. 2. In the 2024-2023 comparative income statements, what will be the amounts of net income reported for 2023 and 2024 ? 3. Prepare the 2024-2023 retained earnings column of the comparative statements of shareholders' equity. repare the journal entry at the beginning of 2024 to record the change in accounting principle. 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 rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). Journal entry worksheet Record the change in accounting principle. Note: Enter debits before credits. In the 2024-2023 comparative income statements, what will be the amounts of net income reported for 2023 and 2024? Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Prepare the 2024-2023 retained earnings column of the comparative statements of shareholders' equity. Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10 ). Fantasy Fashions had used the LIFO method of costing inventories, but at the beginning of 2024 decided to change to the FIFO method. The inventory as reported at the end of 2023 using LIFO would have been $24 million higher using FIFO. Retained earnings reported at the end of 2022 and 2023 was $244 million and $264 million, respectively (reflecting the LIFO method). Those amounts reflecting the FIFO method would have been $254 million and $276 million, respectively. 2023 net income reported at the end of 2023 was $32 million (LIFO method) but would have been $34 million using FIFO. After changing to FIFO, 2024 net income was $40 million. Dividends of $9 million were paid each year. The tax rate is 25%. Required: 1. Prepare the journal entry at the beginning of 2024 to record the change in accounting principle. 2. In the 2024-2023 comparative income statements, what will be the amounts of net income reported for 2023 and 2024 ? 3. Prepare the 2024-2023 retained earnings column of the comparative statements of shareholders' equity. repare the journal entry at the beginning of 2024 to record the change in accounting principle. 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 rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). Journal entry worksheet Record the change in accounting principle. Note: Enter debits before credits. In the 2024-2023 comparative income statements, what will be the amounts of net income reported for 2023 and 2024? Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Prepare the 2024-2023 retained earnings column of the comparative statements of shareholders' equity. Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10 )