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

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