The Collins Corporation purchased office equipment at the beginning of 2019 and capitalized a cost of $2,092,000. This cost included the following expenditures: Purchase price Freight charges Installation charges Annual maintenance charge Total $1,9ee, eee 36,eee 26, eee 130, eee $2,092, eee 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 & 2. Ignoring Income taxes, prepare the appropriate correcting entry for the equipment capitalization error discovered in 2021 and any 2021 journal entries 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. Round your final answers to the nearest whole dollar.) No Event Debit Credit Answer is not complete. General Journal Retained earnings Accumulated depreciation Equipment 1 1 130.000 2 2 No journal entry required 3 3 Depreciation expense Accumulated depreciation The Rockwell Corporation uses a periodic Inventory system and has used the FIFO cost method since inception of the company in 1982. In 2021, the company decided to change to the average cost method. Data for 2021 are as follows: $240,000 Beginning inventory, FIFO (6,800 units @ $40.00) Purchases: 6,eee units @ $46.00 6,000 units @ $50.00 cost of goods available for sale sales for 2021 (10,000 units @ $80.80) $276, eee 3ee, eee 576,000 $816,000 $800,000 Additional information: 1. The company's effective Income tax rate is 25% for all years. 2. If the company had used the average cost method prior to 2021, ending Inventory for 2020 would have been $216,000. 3. 8,000 units remained in Inventory at the end of 2021. Required: 1. Prepare the journal entry at the beginning of 2021 to record the change in principle. 2. In the 2021-2019 comparative financial statements, what will be the amounts of cost of goods sold and Inventory reported for 2021? Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entry at the beginning of 2021 to record the change in principle. (If no entry is required for a particular event, select "No journal entry required" in the first account field.) No Event General Journal Debit Credit 1 1 9.600 Retained earnings Inventory 24.000 In the 2021-2019 comparative financial statements, what will be the amounts of cost of goods sold and inventory reported for 2021? Cost of goods sold Inventory