($ 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
($ 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:($ in millions)
Revenues
2022
$ 520
(52)
(80)
(298)
Cost of goods sold (FIFO)
Cost of goods sold (average)
Operating expenses
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.
Req 1
2023
$530
(54)
(84)
(306)
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 2
Req 3 and 4
2024
$ 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 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
Retained earnings balance using average method, January 1, 2023
$
($ in
millions)
170 X
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