For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acquired at the beginning of 2018 for $2,800,000. Its useful life was estimated to be six years with a $220,000 residual value. At the beginning of 2021, Clinton decided to change to the straight-line method. The effect of this change on depreciation for each year is as follows:**Table:**- **Year**: 2018 - **Straight-Line**: $438 - **Declining Balance**: $933 - **Difference**: $495- **Year**: 2019 - **Straight-Line**: $438 - **Declining Balance**: $622 - **Difference**: $192- **Year**: 2020 - **Straight-Line**: $438 - **Declining Balance**: $415 - **Difference**: $(15)- **Total** - **Straight-Line**: $1,290 - **Declining Balance**: $1,970 - **Difference**: $680**Required:**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.)**Journal Entry Worksheet:**Record the adjusting entry for depreciation in 2021.> Note: Enter debits before credits.| Event | General Journal | Debit | Credit ||-------|-----------------|-------|--------|| 1 | | | |**Buttons:**- Record entry- Clear entry- View general journal

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Description: For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acquired at the beginning of 2018 for $2,800,000. Its useful life was estimated to be six years with a $220,000 residual valu

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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 $2,800,000. Its useful life was estimated to be six years with a $220,000 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 $ 430 430 430 $1,290 ($ in thousands) Declining Balance $ 933 622 415 $1,970 Difference $503 192 (15) $680 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 fleld.)

For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acquired at the beginning of 2018 for $2,800,000. Its useful life was estimated to be six years with a $220,000 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 $ 430 430 430 $1,290 ($ in thousands) Declining Balance $ 933 622 415 $1,970 Difference $503 192 (15) $680 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 fleld.)

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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