for question 1 options for the general journal descriptions include: no journal entry, accumulated depreciation, buildings, cash, common stock, cost of goods sold, deferred rent, revenue, depreciation, expense, dividends, equipment, income tax, expense, income tax, payable, insurance, expense, interest, expense, interest, people, interest, revenue, inventory, notes, people, operating expense, paid in capital -- excess of par, patent, prepaid, insurance, revenue, retained earnings, salaries expense, salaries payable, treasury stock

Problem 20-5 (Static) Change in inventory methods [LO20-2] 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 $20 million higher using FIFO. Retained earnings reported at the end of 2022 and 2023 was $240 million and $260 million, respectively (reflecting the LIFO method). Those amounts reflecting the FIFO method would have been $250 million and $272 million, respectively. 2023 net Income reported at the end of 2023 was $28 million (LIFO method) but would have been $30 million using FIFO. After changing to FIFO, 2024 net income was $36 million. Dividends of $8 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare 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 (i.e., 10,000,000 should be entered as 10). View transaction list Journal entry worksheet Record the change in accounting principle. Note: Enter debits before credits. Event 1 General Journal Debit Credit