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Collins Corporation purchased office equipment at the beginning of 2019 and capitalized a cost of $2,022,000. This cost figure Included the following expenditures: Purchase price

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Collins Corporation purchased office equipment at the beginning of 2019 and capitalized a cost of $2,022,000. This cost figure Included the following expenditures: Purchase price Freight charges Installation charges Annual maintenance charge Total $1,860,000 31,000 21. 110,000 $2,022,000 The company estimated an eight-year useful life for the equipment. No residual value is anticipated. The double declining balance method was used to determine depreciation expense for 2019 and 2020. In 2021, after the 2020 financial statements were issued, the company decided to switch to the straight-line depreciation method for this equipment. At that time, the company's controller discovered that the original cost of the equipment incorrectly included one year of annual maintenance charges for the equipment Required: 1. Ignoring income taxes, prepare the appropriate correcting entry for the equipment capitalization error discovered in 2021. 2. Ignoring income taxes, prepare any 2021 journal entry(s) related to the change in depreciation methods Complete this question by entering your answers in the tabs below. Required 1 Required 2 Ignoring income taxes, prepare the appropriate correcting entry for the equipment capitalization error discovered in 2021. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) Required 1 Required 2 Ignoring income taxes, prepare any 2021 journal entry(s) related to the change in depreciation methods. (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 Record the entry related to the change in depreciation method Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general journal

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