For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acquired at the beginning of 2018 for $2,656,000. Its useful life was estimated to be six years with a $184,000 residual value. At the beginning of 2021, Clinton decides to change to the straight-line method. The effect of this change on depreciation for each year is as follows: Year 2018 2019 2020 Straight-Line $ 412 412 412 $1,236 ($ in thousands) Decliğing Balance $885 590 394 $1,869 Difference $473 178 (18) $633 Required: 2. Prepare any 2021 journal entry related to the change. (Enter your answers in dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acquired at the beginning of 2018 for $2,656,000. Its useful life was estimated to be six years with a $184,000 residual value. At the beginning of 2021, Clinton decides to change to the straight-line method. The effect of this change on depreciation for each year is as follows: Year 2018 2019 2020 Straight-Line $ 412 412 412 $1,236 ($ in thousands) Decliğing Balance $885 590 394 $1,869 Difference $473 178 (18) $633 Required: 2. Prepare any 2021 journal entry related to the change. (Enter your answers in dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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Description: For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acquiredat the beginning of 2018 for $2,656,000. Its useful life was estimated to be six years with a $184,000 residual value

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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