Ronaldo Co has a year-end of 31 December and purchased equipment on 1 September 2018 with...

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Ronaldo Co has a year-end of 31 December and purchased equipment on 1 September 2018 with the following costs: list price BD6500; delivery costs BD150 and installation costs BD250. The equipment has a useful life of 10 years with a BD400 residual value. It is the policy of the company to charge a full year's depreciation on the year of acquisition and none in the year of disposal. Ronaldo has the policy of keeping all equipment at revalued amount. No revaluation was necessary until 31 2/6 December 2021. A specific market value of the equipment is available amounting to BD 5000. Ronaldo Co treats revaluation surpluses as being realised through the use of the asset and transfers them to retained earnings over the life of the asset. The remaining useful life and the residual value of the asset remained the same. Required: (a) Prepare the extracts of financial statements related to the above transactions for the year ended 31 December 2022. (b) Discuss the accounting implications if the equipment was held by Ronaldo Co to earn rentals or for capital appreciation. Ronaldo Co has a year-end of 31 December and purchased equipment on 1 September 2018 with the following costs: list price BD6500; delivery costs BD150 and installation costs BD250. The equipment has a useful life of 10 years with a BD400 residual value. It is the policy of the company to charge a full year's depreciation on the year of acquisition and none in the year of disposal. Ronaldo has the policy of keeping all equipment at revalued amount. No revaluation was necessary until 31 2/6 December 2021. A specific market value of the equipment is available amounting to BD 5000. Ronaldo Co treats revaluation surpluses as being realised through the use of the asset and transfers them to retained earnings over the life of the asset. The remaining useful life and the residual value of the asset remained the same. Required: (a) Prepare the extracts of financial statements related to the above transactions for the year ended 31 December 2022. (b) Discuss the accounting implications if the equipment was held by Ronaldo Co to earn rentals or for capital appreciation. Ronaldo Co has a year-end of 31 December and purchased equipment on 1 September 2018 with the following costs: list price BD6500; delivery costs BD150 and installation costs BD250. The equipment has a useful life of 10 years with a BD400 residual value. It is the policy of the company to charge a full year's depreciation on the year of acquisition and none in the year of disposal. Ronaldo has the policy of keeping all equipment at revalued amount. No revaluation was necessary until 31 2/6 December 2021. A specific market value of the equipment is available amounting to BD 5000. Ronaldo Co treats revaluation surpluses as being realised through the use of the asset and transfers them to retained earnings over the life of the asset. The remaining useful life and the residual value of the asset remained the same. Required: (a) Prepare the extracts of financial statements related to the above transactions for the year ended 31 December 2022. (b) Discuss the accounting implications if the equipment was held by Ronaldo Co to earn rentals or for capital appreciation. Ronaldo Co has a year-end of 31 December and purchased equipment on 1 September 2018 with the following costs: list price BD6500; delivery costs BD150 and installation costs BD250. The equipment has a useful life of 10 years with a BD400 residual value. It is the policy of the company to charge a full year's depreciation on the year of acquisition and none in the year of disposal. Ronaldo has the policy of keeping all equipment at revalued amount. No revaluation was necessary until 31 2/6 December 2021. A specific market value of the equipment is available amounting to BD 5000. Ronaldo Co treats revaluation surpluses as being realised through the use of the asset and transfers them to retained earnings over the life of the asset. The remaining useful life and the residual value of the asset remained the same. Required: (a) Prepare the extracts of financial statements related to the above transactions for the year ended 31 December 2022. (b) Discuss the accounting implications if the equipment was held by Ronaldo Co to earn rentals or for capital appreciation.

Answer rating: 100% (QA)

a Extracts of Financial Statements for the year ended 31 December 2022 Statement of Financial Positi... View the full answer