Answer:
a. There is no entry required to record the accounting change
b. The journal entry to record depreciation for 2021 would be as follows:
Debit Credit
Depreciation Expense $3,000
Accumulated Depreciation $3,000
Explanation:
According to the given data we have the following:
Sum of year digits=5(5+1)/2
Sum of year digits=(5*6)/2
Sum of year digits=15
Depreciation for year 2019=$30,000*5/15
Depreciation for year 2019=$10,000
Depreciation for year 2020=$30,000*4/15
Depreciation for year 2020=$8,000
Therefore, book value as on january 1, 2021=$30,000-$10,000-$8,000
book value as on january 1, 2021=$12,000
Revised useful life=6 years-2 years=4 years
Therefore, Revised depreciation for 2021=$12,000/4
Revised depreciation for 2021=$3,000
a. There is no entry required to record the accounting change
b. The journal entry to record depreciation for 2021 would be as follows:
Debit Credit
Depreciation Expense $3,000
Accumulated Depreciation $3,000
