Millington Materials is a leading supplier of building equipment, building products, materials, and timber for sale,...

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Millington Materials is a leading supplier of building equipment, building products, materials, and timber for sale, with over 200 branches across the Mid-South. On January 1, 2024, management decided to change from the average inventory costing method to the FIFO inventory costing method at each of its outlets. The following table presents information concerning the change. The income tax rate for all years is 25%. Income before Income Tax Average Cost Before 2023 2023 2024 FIFO $ 23 million $ 16 million 24 million 18 million 13 million 17 million Difference $7 million 11 million 1 million Required: 1. Prepare the journal entry to record the change in accounting principle. 2. Determine the net income to be reported in the 2024-2023 comparative income statements. 4. Indicate the affect of the change in the 2024-2023 comparative statements of shareholders' equity assuming cash dividends were $6.00 million each year and that no dividends were paid prior to 2023. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 4 Prepare the journal entry to record the change in accounting principle. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50). View transaction list Journal entry worksheet 1 Record the change in accounting principle. Note: Enter debits before credits. Event 1 General Journal Debit Credit Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 4 Determine the net income to be reported in the 2024-2023 comparative income statements. Note: Do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50). 2024 2023 ($ in millions) Net Income < Required 1 Required 4 > Required 1 Required 2 Required 4 Indicate the affect of the change in the 2024-2023 comparative statements of shareholders' equity assuming cash dividends were $6 million each year and that no dividends were paid prior to 2023. Note: Do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50). MILLINGTON MATERIALS Statement of Shareholders' Equity For the Years Ended December 31, 2024 and 2023 ($ in millions) Balance at January 1, 2023 Balance at December 31, 2023 Balance at December 31, 2024 Common Stock Additional Paid-in Capital Retained Earnings Total Shareholders' Equity < Required 2 Required 4 > Show less Millington Materials is a leading supplier of building equipment, building products, materials, and timber for sale, with over 200 branches across the Mid-South. On January 1, 2024, management decided to change from the average inventory costing method to the FIFO inventory costing method at each of its outlets. The following table presents information concerning the change. The income tax rate for all years is 25%. Income before Income Tax Average Cost Before 2023 2023 2024 FIFO $ 23 million $ 16 million 24 million 18 million 13 million 17 million Difference $7 million 11 million 1 million Required: 1. Prepare the journal entry to record the change in accounting principle. 2. Determine the net income to be reported in the 2024-2023 comparative income statements. 4. Indicate the affect of the change in the 2024-2023 comparative statements of shareholders' equity assuming cash dividends were $6.00 million each year and that no dividends were paid prior to 2023. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 4 Prepare the journal entry to record the change in accounting principle. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50). View transaction list Journal entry worksheet 1 Record the change in accounting principle. Note: Enter debits before credits. Event 1 General Journal Debit Credit Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 4 Determine the net income to be reported in the 2024-2023 comparative income statements. Note: Do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50). 2024 2023 ($ in millions) Net Income < Required 1 Required 4 > Required 1 Required 2 Required 4 Indicate the affect of the change in the 2024-2023 comparative statements of shareholders' equity assuming cash dividends were $6 million each year and that no dividends were paid prior to 2023. Note: Do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50). MILLINGTON MATERIALS Statement of Shareholders' Equity For the Years Ended December 31, 2024 and 2023 ($ in millions) Balance at January 1, 2023 Balance at December 31, 2023 Balance at December 31, 2024 Common Stock Additional Paid-in Capital Retained Earnings Total Shareholders' Equity < Required 2 Required 4 > Show less