Exam (elaborations)
FAC1601 Assignment 3 (COMPLETE ANSWERS) Semester 1 2024 (214921) - DUE 30 April 2024
- Course
- FAC1601
- Institution
- University Of South Africa
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FAC1601Assignment 3
(COMPLETE
ANSWERS)
Semester 1 2024
(214921) - DUE
30 April 2024
, Question 1 Not yet answered Marked out of 3.00 QUIZ This information
relates to questions 1 - 5 below: A profi table cattle feed production company,
Tswelelopele Ltd, was incorporated with an authorised share capital of
900,000 NPV ordinary shares and 600,000 6.5% preference shares. The
company's fi nancial year-end is April 30. Below are the share transactions
recorded for Tswelelopele Ltd since incorporation: On May 1, 2022, 105,000
ordinary shares were issued to subscribers at R8.5 per share. On June 18,
2022, 225,000 ordinary shares and 260,000 6.5% preference shares were
issued to the public at R10.50 each and R11.20 each, respectively. On July
31, 2023, 102,000 6.5% preference shares were issued at R20.20 each. On
March 25, 2024, the share capital for ordinary shares increased by
R1,820,500. These shares were issued at R12.50 each. On April 15, 2024,
the directors of Tswelelopele Ltd approved a capitalisation issue of 1 share for
every 4 ordinary shares held at R15.9 per share. On April 30, 2024, the board
of Tswelelopele Ltd declared an ordinary dividend of R0.45 per share, payable
during May 2024. The company met the liquidity and solvency requirements.
Which one of the following alternatives represents the correct total number of
ordinary shares issued by Tswelelopele Ltd as at 31 March 2024? a. 330,000
b. 245,000 c. 300,000 d. 475,640 e.2,150,500 Clear my choice Time left
1:57:13 S - The study-notes marketplace S - The study-notes marketplace
Question 5 Not yet answered Marked out of 5.00 Which one of the following
alternatives represents the correct amount of preference share dividend by
Tswelelopele Ltd on 30 April 2024? a. R 189,000 b. R 323,206 c. R 289,725 d.
R 189,280 e.R 320,000 Clear my choice S - The study-notes marketplace
Question 8 Not yet answered Marked out of 1.50 Which statement accurately
describes the taxation of close corporations? a. A close corporation is taxed
separately from its members. b. Members of a close corporation are taxed on
the CC's income. c. Taxation of a close corporation is at a fi xed rate
irrespective of income. d. Close corporations pay double the tax rate
compared to companies. e.Close corporations are exempt from all forms of
taxation. Clear my choice S - The study-notes marketplace FAC1601-24-S1
Welcome Message Assessment 3 Question 9 Not yet answered Marked out
of 1.50 Question 10 Not yet answered Marked out of 1.50 QUIZ How many
natural persons are allowed to be members of a close corporation? a. No limit
as long as all are natural persons. b. 20 c. 15 d. 10 e.5 Clear my choice When
accounting for the payment of provisional tax by a close corporation, what are
the correct journal entries? a. Debit SARS (income tax) and Credit Bank. b.
Debit Bank and credit income tax expense. c. Debit income tax expense and
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