Teal Company changed depreciation methods in 2020 from double-declining-balance to straight-line. Depreciation prior to 2020 under double-declining-balance was $87,900, whereas straight-line depreciation prior to 2020 would have been $54,900. Teal’s depreciable assets had a cost of $241,300 with a $43,800 salvage value, and an 8-year remaining useful life at the beginning of 2020. Prepare the 2020 journal entry related to Teal’s depreciable assets (equipment).

On february 10, 2014, after issuance of its financial statements for 2013, higgins company entered into a financing agreement with cleveland bank, allowing higgins company to borrow up to $6,000,000 at any time through 2016. amounts borrowed under the agreement bear interest at 2% above the bank's prime interest rate and mature two years from the date of loan. higgins company presently has $2,250,000 of notes payable with star national bank maturing march 15, 2014. the company intends to borrow $3,750,000 under the agreement with cleveland and liquidate the notes payable to star national bank. the agreement with cleveland also requires higgins to maintain a working capital level of $9,000,000 and prohibits the payment of dividends on common stock without prior approval by cleveland bank. from the above information only, the total short-term debt of higgins company as of the december 31, 2013 balance sheet date is