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FAC2601 ASSIGNMENT 3 SEMESTER 2 2024 MCQ Distinction guaranteed 90+
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Fac2601 Assignment 3 Semester 2 2024 MCQ 90+ upward
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QUESTION ORDER IS DIFFERENT FOR EACH STUDENTAnswer the following multiple-choice questions. Indicate your choice by selecting only one option
from the four options given for each question answered. Round off all calculations to the nearest
Rand or 2nd decimal %, where applicable.
Use the following information to answer questions 13:
Lala Ltd, with a financial year ending on 31 December 2023, issued share capital upon incorporation on 1
January 2021.
At the beginning of the year, the following information was available:
600,000 ordinary shares were issued at R7 each at incorporation. On 1 July 2021, 200,000 cumulative
preference shares, with a 15% dividend rate, were issued at R8.00 each. On 1 October 2022, 240,000
non-cumulative preference shares, with a 10% dividend rate, were issued at R9.00 each. Retained
earnings as of 1 January 2023 were R641,400.
The following equity-related transactions for the current financial year have not yet been recorded in
the accounting records:
On 1 June 2023, 50,000 ordinary shares were issued at R10 per share. Share issue expenses amounted
to R5,000, which must be written off against retained earnings. On 1 July 2023, a capitalization issue was
made, issuing one new ordinary share for every five ordinary shares held, at R11 per share. The total
comprehensive income for the year amounted to R990,000.
QUESTION 13:
REQUIRED:
If an ordinary dividend of 20c for every share was declared on 23 December 2023, what is the amount of
total dividends payable on 31 December 2023?
1.
R720 000
2.
R972 000
3.
R756 000
,4.
R730 000
Ordinary shares
Shares
Issued at incorporation 600 000
Issued on 1 June 2023 50 000
Total before capitalisation 650 000
Capitalisation issue (650 000 x 1/5) 130 000
Total ordinary shares 780 000
Ordinary dividends (780 000 x 0,20) 156 000
Cumulative preference dividend (200 000 x 8 x 15% x 30/12) 600 000
Non-cumulative preference dividend (240 000 x 9 x 10%) 216 000
972 000
Clear my choice
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Answer the following multiple-choice questions. Indicate your choice by selecting only one option
from the four options given for each question answered. Round off all calculations to the nearest
Rand or 2nd decimal %, where applicable.
Use the following information to answer questions 11:
Lala Ltd, with a financial year ending on 31 December 2023, issued share capital upon incorporation on 1
January 2021.
At the beginning of the year, the following information was available:
600,000 ordinary shares were issued at R7 each at incorporation. On 1 July 2021, 200,000 cumulative
preference shares, with a 15% dividend rate, were issued at R8.00 each. On 1 October 2022, 240,000
non-cumulative preference shares, with a 10% dividend rate, were issued at R9.00 each. Retained
earnings as of 1 January 2023 were R641,400.
, The following equity-related transactions for the current financial year have not yet been recorded in
the accounting records:
On 1 June 2023, 50,000 ordinary shares were issued at R10 per share. Share issue expenses amounted
to R5,000, which must be written off against retained earnings. On 1 July 2023, a capitalization issue was
made, issuing one new ordinary share for every five ordinary shares held, at R11 per share. The total
comprehensive income for the year amounted to R990,000.
REQUIRED
QUESTION 11:
Assume Lala Ltd declared only non-cumulative preference dividends on 31 December 2023, and these
dividends have not yet been paid. No other dividends, including cumulative preference share dividends
or ordinary share dividends, have been declared nor paid since incorporation.
Calculate the total outstanding dividend liability on 31 December 2023?
1.
R600 000
2.
R616 000
3.
R216 000
4.
R816 000
Clear my choice
Cumulative preference dividend (200 000 x 8 x 15% x 30/12) 600 000
Non-cumulative preference dividend (240 000 x 9 x 10%) 216 000
816 000
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