During 2022 (its first year of operations) and 2023, Fieri Foods used the FIFO inventory costing method for both financial reporting and tax purposes. At the beginning of 2024 , Fieri decided to change to the average method for both financial reporting and tax purposes. Income components before income tax for 2022, 2023, and 2024 were as follows: Dividends of $31 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
Other questions asked by students
Statistics
1.2K views
Psychology
1.2K views
What does it mean to be a macro social worker? A micro social worker? Do these...
Psychology
1.2K views
Mechanical Engineering
1.2K views
Advance Math
1.2K views
Find the order of each of the following elements. ( 3 , 4 ) in Z...
General Management
1.2K views
What are the three type of constraints that projects face; provide examples and suggest ways to...
Algebra
1.2K views
Write the equation of the circle with center 1 5 and radius 4 Write the...
Algebra
1.2K views
Write an explicit formula for the sequence a1 4 r 4 A an 4 12...
Accounting
1.2K views
Accounting
1.2K views