For financial reporting, Kumas Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acquiredat the beginning of 2021 for $2,736,000. Its useful life was estimated to be six years with a $204,000 residual value. At the beginningof 2024, Kumas decides to change to the straight-line method. The effect of this change on depreciation for each year is as follows:($ in thousands)DecliningBalanceDifferenceYear2021Straight-Line$ 422$ 912$ 49020222023422422608186405(17)$ 1,266$ 1,925$ 659Required:2. Prepare any 2024 journal entry related to the change.Note: Enter you answers rounded to the nearest dollar. If no entry is required for a transaction/event, select "No journal entryrequired" in the first account field.View transaction listJournal entry worksheet1Record the adjusting entry for depreciation in 2024.Note: Enter debits before credits.Event1General JournalDebitCreditRecord entryClear entryView general journal

The objective of the question is to prepare the journal entry for the year 2024 related to the…

Answered: For financial reporting, Kumas Poultry…

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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Hadley Zavis Inc. started its unicycle manufacturing business in 2020 and acquired $600,000 of equipment at the beginning of 2020. It decided to use the double-declining balance (DDB) depreciation on its equipment with no residual value and a 10-year useful life. In 2022 it changed to the straight-line depreciation method. Depreciation computed for 2020-2021 is presented below: Year DDB 2020 $120,000 2021 96,000 In 2022, what would Harley Davis report for depreciation expense?
For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acquired at the beginning of 2015 for $2,560,000. Its useful life was estimated to be six years with a $160,000 residual value. At the beginning of 2018, Clinton decides to change to the straight-line method. The effect of this change on depreciation for each year is as follows ($ in 000s): Year 2015 Straight-Line $ 400 2016 2017 400 400 $1,200 Declining Balance $ 853 569 Difference $453 169 379 $1,801 (21) $601 Required: 2. Prepare any 2018 journal entry related to the change. (Enter your answers in dollars rounded to the nearest thousand. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record the adjusting entry for depreciation in 2018. Note: Enter debits before credits. Event 1 General Journal Debit Credit
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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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For financial reporting, Kumas Poultry Farms has used the declining-balance method of depreciation for conveyer. equipment acquired at the beginning of 2021 for $2,560,000. Its useful life was estimated to be six years with a $160,000 residual value. At the beginning of 2024, Kumas decides to change to the straight-line method. The effect of this change on depreciation for each year is as follows: Year 2021 2022 2023 Straight-Line $ 400 400 400 $ 1,200 View transaction list ($ in thousands) Declining Balance $ 853 569 379 $ 1,801 Required: 2. Prepare any 2024 journal entry related to the change. Note: Enter you answers rounded to the nearest dollar. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet 1 Difference. $ 453 169 (21) $ 601 Record the adjusting entry for depreciation in 2024. Note: Enter debits before credits.

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