7. Ray acquired a property on 1 January x2 at a cost of RM960,000. Expected useful life is 24 years. The company policy is to revalue its properties to their market values at the end of each year. Accumulated depreciation is eliminated and the property is restated to the revalued amount. Annual depreciation iş calculated on the carrying amount at the beginning of the year. The market values of the property on 31 December x3 and x5 were RM1,100,000 and RM750,000, respectively. The existing balance on the revaluation reserve is RM200,000 which is related to some non-depreciable land whose value has not changed significantly since 1 January x2. Required: Prepare extracts of the financial statements of Ray (including revaluation reserve) for the years x2 to x6.
7. Ray acquired a property on 1 January x2 at a cost of RM960,000. Expected useful life is 24 years. The company policy is to revalue its properties to their market values at the end of each year. Accumulated depreciation is eliminated and the property is restated to the revalued amount. Annual depreciation iş calculated on the carrying amount at the beginning of the year. The market values of the property on 31 December x3 and x5 were RM1,100,000 and RM750,000, respectively. The existing balance on the revaluation reserve is RM200,000 which is related to some non-depreciable land whose value has not changed significantly since 1 January x2. Required: Prepare extracts of the financial statements of Ray (including revaluation reserve) for the years x2 to x6.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
This question related with MFRS 116
Transcribed Image Text:7. Ray acquired a property on 1 January x2 at a cost of RM960,000. Expected
useful life is 24 years. The company policy is to revalue its properties to
their market values at the end of each year. Accumulated depreciation is
eliminated and the property is restated to the revalued amount. Annual
depreciation iş calculated on the carrying amount at the beginning of the
year. The market values of the property on 31 December x3 and x5 werege
RM1,100,000 and RM750,000, respectively. The existing balance on the
revaluation reserve is RM200,000 which is related to some non-depreciable
land whose value has not changed significantly since 1 January x2.
Required:
Prepare extracts of the financial statements of Ray (including revaluation
reserve) for the years x2 to x6.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education