For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acquired at the beginning of 2021 for $2,880,000. Its useful life was estimated to be four years, with a $168,000 residual value. At the beginning of 2024, Clinton decides to change to the straight-line method. The effect of this change on depreciation for each year is as follows: ($ in thousands) Year Straight Line Declining Balance Difference 2021 $ 678 $ 1,440 $ 762 2022 678 720 42 2023 678 360 (318)   $ 2,034 $ 2,520 $ 486 Required: 2. Prepare any 2024 journal entry related to the change.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 2021 for $2,880,000. Its useful life was estimated to be four years, with a $168,000 residual value. At the beginning of 2024, 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
2021 $ 678 $ 1,440 $ 762
2022 678 720 42
2023 678 360 (318)
  $ 2,034 $ 2,520 $ 486

Required:

2. Prepare any 2024 journal entry related to the change.

Journal entry worksheet
1
Record depreciation expense for 2024.
Note: Enter debits before credits.
Event
1
General Journal
Depreciation expense
Accumulated depreciation
Record entry
Clear entry
Debit
Credit
View general journal
Transcribed Image Text:Journal entry worksheet 1 Record depreciation expense for 2024. Note: Enter debits before credits. Event 1 General Journal Depreciation expense Accumulated depreciation Record entry Clear entry Debit Credit View general journal
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