Munich Company has the following balance sheets and retained earnings statements:

			2020	2019
Cash			$10,000	$15,000
Receivables			12,000	10,000
Inventories (LIFO)			21,000	18,000
Other Assets			30,000	20,000
			$73,000	$63,000
Capital Stock			$40,000	$30,000
Retained Earnings			43,000	33,000
			$83,000	$63,000
Retained Earnings Jan 1			$33,000	$35,000
Income			15,000	12,000
Dividends			-5,000	-14,000
Retained Earnin Dec 31			$43,000	$33,000

The above incomes are based on LIFO Cost of Goods Sold.

Munich changed from LIFO to FIFO on January 1, 2020. December 31, 2020 inventory at FIFO is $25,000 while December 31, 2019

inventory at FIFO is $21,000.

Prepare a retained earnings statement for 2020 under FIFO assuming there is no comparative statement with prior years.

Journalize the correction at January 1, 2020.