For financial reporting, Kumas Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acquired at the beginning of 2021 for $2,752,000. Its useful life was estimated to be six years with a $208,000 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 $ 424 424 424 $ 1,272 ($ in thousands) Declining Balance No 1 $917 611 408 $ 1,936 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. Difference $493 187 (16) $ 664 View transaction list View journal entry worksheet Event 1 Depreciation expense Accumulated depreciation General Journal Debit Credit
For financial reporting, Kumas Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acquired at the beginning of 2021 for $2,752,000. Its useful life was estimated to be six years with a $208,000 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 $ 424 424 424 $ 1,272 ($ in thousands) Declining Balance No 1 $917 611 408 $ 1,936 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. Difference $493 187 (16) $ 664 View transaction list View journal entry worksheet Event 1 Depreciation expense Accumulated depreciation General Journal Debit Credit
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 5MC: During 2019, White Company determined that machinery previously depreciated over a 7-year life had a...
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