Rogers Corporation commenced operations on October 1, 2022. With respect to property, plant and equipment, the...

 

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Rogers Corporation commenced operations on October 1, 2022. With respect to property, plant and equipment, the company completed the following transactions: 2022: October 1: The company paid $6,200,000 to purchase the following assets: Asset Land Building Equipment Appraised Value Useful Life $2,100,000 $2,650,000 $1,800,000 18 years 12 years Residual Value $500,000 $150,000 Rogers plans to use straight line depreciation for both buildings and equipment. November 1: Purchased two identical distribution trucks with a list price of $160,000 each for $280,000 cash. It is expected that the trucks will be used for five years, and each truck will be driven a total of 300,000 kilometres. The residual value is expected to be $30,000 for each truck and the company will use the units of production method to depreciate the trucks. December 31: Recorded depreciation on the assets. The first truck travelled 35,000 kilometres in December and the second truck travelled 48,000 kilometres. 2023: March 1: Rogers acquired additional manufacturing equipment for $410,000. The equipment was brand new and the useful life was expected to be 10 years. The company planned to use declining balance method for this equipment. Due to expected obsolescence, the residual value was set to $60,000. December 31: Recorded depreciation on the assets. Truck 1 travelled 65,000 kilometres in 2023 and Truck 2 travelled 50,000 kilometres. 2024: January 1: Rogers determined that the useful life remaining on the building purchased in 2022 is 14 years and the residual value will be $400,000. July 1: Rogers sold some of the equipment purchased in 2022. The original cost assigned to the equipment sold was $350,000 with no residual value. It received cash proceeds of $200,000 for the equipment. Required: 1. Prepare the journal entries to record the transactions for 2022 and 2023 2. Provide the appropriate statement of financial position disclosure at December 31, 2023. 3. Calculate the revised depreciation expense for the building for 2024. 4. Record the sale of the equipment in 2024. Rogers Corporation commenced operations on October 1, 2022. With respect to property, plant and equipment, the company completed the following transactions: 2022: October 1: The company paid $6,200,000 to purchase the following assets: Asset Land Building Equipment Appraised Value Useful Life $2,100,000 $2,650,000 $1,800,000 18 years 12 years Residual Value $500,000 $150,000 Rogers plans to use straight line depreciation for both buildings and equipment. November 1: Purchased two identical distribution trucks with a list price of $160,000 each for $280,000 cash. It is expected that the trucks will be used for five years, and each truck will be driven a total of 300,000 kilometres. The residual value is expected to be $30,000 for each truck and the company will use the units of production method to depreciate the trucks. December 31: Recorded depreciation on the assets. The first truck travelled 35,000 kilometres in December and the second truck travelled 48,000 kilometres. 2023: March 1: Rogers acquired additional manufacturing equipment for $410,000. The equipment was brand new and the useful life was expected to be 10 years. The company planned to use declining balance method for this equipment. Due to expected obsolescence, the residual value was set to $60,000. December 31: Recorded depreciation on the assets. Truck 1 travelled 65,000 kilometres in 2023 and Truck 2 travelled 50,000 kilometres. 2024: January 1: Rogers determined that the useful life remaining on the building purchased in 2022 is 14 years and the residual value will be $400,000. July 1: Rogers sold some of the equipment purchased in 2022. The original cost assigned to the equipment sold was $350,000 with no residual value. It received cash proceeds of $200,000 for the equipment. Required: 1. Prepare the journal entries to record the transactions for 2022 and 2023 2. Provide the appropriate statement of financial position disclosure at December 31, 2023. 3. Calculate the revised depreciation expense for the building for 2024. 4. Record the sale of the equipment in 2024.

Answer rating: 100% (QA)

1 Journal entries to record the transactions for 2022 and 2023 2022 October 1 Land Debit Land 210000... View the full answer