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:

$($$ in millions$)202220232024$

Revenues $ $580$ $ $590$ $ $620$

Cost of goods sold $($FIFO$)(58)(60)(66)$

Cost of goods sold $($average$)(92)(96)(102)$

Operating expenses $(322)(330)(334)$

Dividends of $$39$ million were paid each year. Fieri$$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 $20242023$ 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.