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During 2019 [its rst year of operations] and 2626, Fieri Foods used the FIFO inventory costing method for both nancial reporting and tax purposes. At the beginning of 2021, Fieri decided to change to the average method for both nancial reporting and tax purposes. Income components before income tax for 2619, 2020, and 2621 were as follows: ($ in millions) 2619 2626 2621 Revenues $ 586 ES 596 ES 526 Cost. of goods sold (FIFO) [56) [66) [66} Cost of goods sold (average) [92) [96) [162} Operating expenses [322) [336) [334} Dividends of$39 million were paid each year. Fieri's fiscal year ends December 31. Required: 1. Prepare thejournal entry at the beginning of 2021 to record the change in accounting principle. [Ignore income taxes.) 2. Prepare the 20212626 comparative income statements. 3. 8: 4. Determine the balance in retained earnings at January 1. 2620 as Fieri reported using FIFO method and determine the adjustment of balance in retained earnings as on January 1, 2020 using average method instead of FIFO method. T haw 7 haw Key 5 and 4 Prepare the journal entry at the beginning of 2021 to record the change in accounting principle. (Ignore income taxes. ) (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) View transaction list Journal entry worksheet > Record the change in accounting principle. Note: Enter debits before credits. Date General Journal Debit Credit January 01, 2021Check my work Req 1 Req 2 Req 3 and 4 Prepare the 2021-2020 comparative income statements. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) COMPARATIVE INCOME STATEMENTS 2021 2020 ($ in millions) Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 and 4 Determine the balance in retained earnings at January 1, 2020 as Fieri reported using FIFO method and determine the adjustment of balance in retained earnings as on January 1, 2020 using average method instead of FIFO method. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) ($ in millions) Retained earnings balance previously reported using FIFO, Jan. 1, 2020 Adjustment to balance for change in inventory methods Retained earnings balance using average method, Jan. 1, 2020