Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. during 2019 (its first year of operations) and 202

During 2019 (its first year of operations) and 2020. Fieri Foods used the FIFO inventory...

90.2K

Verified Solution

Question

Accounting

image
During 2019 (its first year of operations) and 2020. Fieri Foods used the FIFO inventory costing method for both financial reporting and tax purposes. At the beginning of 2021, Fieri decided to change to the average method for both financial reporting and tax purposes. Income components before income tax for 2019, 2020, and 2021 were as follows: Dividends of $35 million were paid each year. Fieri's fiscal year ends December 31 . Required: 1. Prepare the journal entry at the beginning of 2021 to record the change in accounting principle. (Ignore income taxes.) 2. Prepare the 2021-2020 comparative income statements. 3. \& 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. Complete this question by entering your answers in the tabs below. Prepare the journal entry at the beginning of 2021 to record the change in accounting principle, (Ignore income taxes.) (If io 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).)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students