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Question: questions on 31 december 2014 chrisco textiles pty ltd purchased...

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Questions 

On 31 December 2014, Chrisco Textiles Pty Ltd purchased the following fixed assets:

  • Computer equipment on credit for $40,000 plus GST.
  • New textile equipment for $25000 plus GST.
  • New factory land for $100,000 plus GST.

Organisational policies and procedures for Chrisco Textiles Pty Ltd states the following for depreciation:

  • All computer equipment must be sold within three years of purchase
  • Any equipment purchased should be serviced every year and the service fee should be recorded on the asset register card.
  • The land will be recorded at cost and will not be depreciated.
  • Depreciation on computer equipment should be calculated using the diminishing balance method

 

 

 

 

 

 

 

 

 

 

Depreciation on textile equipment should be calculated using the straight line method

Your task is to:

  1. Create and maintain a detailed Asset Register Card with complete depreciation schedule for the above fixed assets.
    1. Record the depreciation and disposal of the non-current assets as per the above organisational procedures and policy information
    2. Complete the general journal entries for the disposal of assets along with recording of profit/loss on sale of the asset

To assist with completing the Asset Register Care, you will need to: 

  • Calculate depreciation on the computer equipment for the financial years ended 30 June 2015, 2016 and 2017.

Notes: 

  • The computer equipment has been sold during the year on 30/9/2017 for $18000 plus GST. 
  • The rate of depreciation is 30%.
  • Calculate depreciation for the financial years ended 30 June 2015, 2016 and 2017 for the textile equipment.

Note:

  • The useful life of the machinery is 5 years

 

1a) 

 

ASSET REGISTER CARD

Depreciation Worksheet – Chrisco Textiles Pty Ltd.

Asset Cost:  $40,000

Asset Name: Computer Equipment 

Less: Residual Value:

Depreciable Amount:

$

Depreciable method:  Diminishing balance             Date Sold:  30/09/2017

Depreciation p.a.                                                Disposal Proceeds: $ $18,000

Date

Book Value at Start

Depreciation

Accumulated

Depreciation

Book Value at End

31/12/14

40,000

0

 

 

30/06/15 

40,000

12,000

6000

34,000

30/06/16

34,000

10,200

16,200

23,800

30/06/17

23,800

7140

23,340

16,660

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSET REGISTER CARD

Depreciation Worksheet – Chrisco Textiles Pty Ltd.

Asset Cost:  $25,000

Asset Name: New Textiles Equipment  

Less: Residual Value:

Depreciable Amount:

$

Depreciable method:  straight line method             Date Sold: 

Depreciation p.a.                                                Disposal Proceeds: $

Date

Book Value at Start

Depreciation

Accumulated

Depreciation

Book Value at End

31/12/14

25,000

0

0

25,000

30/06/15

25,000

5000

2500

22,500

30/06/16

22,500

5000

7500

17,500

30/06/17

17,500

5000

12,500

12,500

 

 

 

 

 

 

 

 

 

 

 

I HAVE TRIED TO DO IT BUT NOT SURE IF ITS CORRECT THE TABLES PLEASE CORRECT AND DO AGAIN 

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