Wolfgang Kitchens has always used the FIFO inventory costing method for both financial reporting and tax purposes. At the beginning of 2024. Wolfgang decided to change to the LIFO method. Net income in 2024 was correctly stated as $128 million. If the company had used LIFO in 2023, its cost of goods sold would have been higher by $15 million that year. Company accountants are able to determine that the cumulative net income for all years prior to 2023 would have been lower by $42 million if LIFO had been used all along, but have insufficient information to determine specific effects of using LiFO in 2022. Last year. Woligang reported the following net income amounts in its comparative income statements: Required: 1. Prepare the joumal entry at the beginning of 2024 to record the change in accounting principle. (Ignore income taxes.) 3. What amounts will Wolfgang report for net income in its 20222024 comparative income statements? Complete this question by entering your answers in the tabs below. Prepare the journal entry at the beginning of 2024 to record the change in accounting principle. (Ignore income taxes.) 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 (1.e., 10,000,000 should be entered as 10). Journal entry worksheet Record the change in accounting principle. Norwi fiter debits before cred ta. Exercise 20-9 (Algo) Change in inventory methods; FIFO method to the LIFO method [LO20-3] Woifgang Kitchens has always used the FIFO inventory costing method for both financial reporting and tax purposes. At the beginning of 2024. Wolfgang decided to change to the LIFO method. Net income in 2024 was correctly stated as $128 million. If the company had used LiFO in 2023 , its cost of goods sold would have been higher by $15 million that year. Company accountants are able to determine that the cumulative net income for all years pilor to 2023 would have been lower by $42 million if Lifo had been used all along. but have insufficient information to determine specific effects of using LiFO in 2022 . Last year, Wolfgang reported the following net income amounts in its comparatve income statements. Required: 1. Prepare the joumal entry at the beginning of 2024 to record the change in accounting principle: (lgnore income taxes.) 3. What amounts will Wolfgang report for net income in its 20222024 comparative income statements? Complete this question by entering your answers in the tabs below. What amounts will wolfgang report for net income in its 20222024 comparative income statements? Note: Enter your answers in milions (i.e, 10,000,000 should be entered as 10)
