For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acquiredat the beginning of 2021 for $2,700,000. Its useful life was estimated to be six years, with a $186,000 residual value. At the beginningof 2024, Clinton decides to change to the straight-line method. The effect of this change on depreciation for each year is as follows:Year202120222023Straight Line($ in thousands)DecliningBalance$ 419419419$ 1,257KView transaction listRequired:2. Prepare any 2024 journal entry related to the change.Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answersin whole dollars rounded to the nearest whole number.$ 900600400$ 1,900Journal entry worksheet1EventDifference481181(19)Note: Enter debits before credits.$ 643Record depreciation expense for 2024.General JournalDebitCreditہے

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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 2021 for $2,700,000. Its useful life was estimated to be six years, with a $186,000 residual valu

Depreciation is the amount which is to be reduced from value of assets to recognise the normal…

Business

Accounting

For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acc at the beginning of 2021 for $2,700,000. Its useful life was estimated to be six years, with a $186,000 residual value. At the begin of 2024, Clinton decides to change to the straight-line method. The effect of this change on depreciation for each year is as follo ($ in thousands) Declining Balance Year Straight Line 2021 2022 2023 $ 419 419 419 $ 1,257 $ 900 600 400 $ 1,900 Difference $ 481 181 (19) $ 643 Required: 2. Prepare any 2024 journal entry related to the change. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your ans in whole dollars rounded to the nearest whole number.

For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acc at the beginning of 2021 for $2,700,000. Its useful life was estimated to be six years, with a $186,000 residual value. At the begin of 2024, Clinton decides to change to the straight-line method. The effect of this change on depreciation for each year is as follo ($ in thousands) Declining Balance Year Straight Line 2021 2022 2023 $ 419 419 419 $ 1,257 $ 900 600 400 $ 1,900 Difference $ 481 181 (19) $ 643 Required: 2. Prepare any 2024 journal entry related to the change. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your ans in whole dollars rounded to the nearest whole number.

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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For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acquired at the beginning of 2018 for $2,816,000. Its useful life was estimated to be six years with a $224,000 residual value. At the beginning of 2021, Clinton decides to change to the straight-line method. The effect of this change on depreciation for each year is as follows: ($ in thousands) Year Straight-Line Declining Balance Difference 2018 $ 432 $ 938 $ 506 2019 432 626 194 2020 432 417 (15 ) $ 1,296 $ 1,981 $ 685 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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