($ in millions)Revenues2022$ 520(52)(80)(298)Cost of goods sold (FIFO)Cost of goods sold (average)Operating expensesDividends of $33 million were paid each year. Fieri's fiscal year ends December 31.Required:1. Prepare the journal entry at the beginning of 2024 to record the change in accounting principle. (Ignore income taxes.)2. Prepare the 2024-2023 comparative income statements.Req 12023$530(54)(84)(306)3. & 4. Determine the balance in retained earnings at January 1, 2023, as Fieri reported using FIFO method and determine theadjustment of balance in retained earnings as on January 1, 2023 using average method instead of FIFO method.Req 2Req 3 and 42024$ 560(60)(90)(310)Complete this question by entering your answers in the tabs below.X Answer is not complete.Determine the balance in retained earnings at January 1, 2023, as Fieri reported using FIFO method and determine theadjustment of balance in retained earnings as on January 1, 2023 using average method instead of FIFO method.Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10).Retained earnings balance previously reported using FIFO, January 1, 2023Adjustment to balance for change in inventory methodsRetained earnings balance using average method, January 1, 2023$($ inmillions)170 X

The first in first out method is the inventory valuation technique which states that the first…

($ in millions) Revenues 2023 2024 $ 530 $ 560 (54) (60) Cost of goods sold (FIF0) Cost of goods sold (average) (84) (90) Operating expenses (306) (310) Dividends of $33 million were paid each year. Fieri's fiscal year ends December 31. Required: 1. Prepare the journal entry at the beginning of 2024 to record the change in accounting principle. (Ignore income taxes.) 2. Prepare the 2024-2023 comparative income statements. 3. & 4. Determine the balance in retained earnings at January 1, 2023, as Fieri reported using FIFO method and determine the adjustment of balance in retained earnings as on January 1, 2023 using average method instead of FIFO method. Req 1 2022 $ 520 (52) (80) (298) Complete this question by entering your answers in the tabs below. Req 2 Req 3 and 4 X Answer is not complete. Determine the balance in retained earnings at January 1, 2023, as Fieri reported using FIFO method and determine the adjustment of balance in retained earnings as on January 1, 2023 using average method instead of FIFO method. Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Retained earnings balance previously reported using FIFO, January 1, 2023 Adjustment to balance for change in inventory methods ($ in millions) 170 X

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 4RE: Refer to RE22-2. Assume Heller Company had sales revenue of 510,000 in 2019 and 650,000 in 2020....