Exam (elaborations)
Fac1502 Assignment 7 2024 Solutions
- Course
- Institution
Fac1601 Assignment 4 solutions for students who are doing Financial accounting at Unisa
[Show more]
Seller
Follow
nattiefellow9
Content preview
FAC1601 Assignment 4 (ANSWERS)Semester 1 2024 - DISTINCTION
GUARANTEED
written by
dochub
www.stuvia.com
Downloaded by: nattiefellow9 | nattiefellow9@gmail.com Want to earn
Distribution of this document is illegal R13,625 per year?
, Stuvia.com - The study-notes marketplace
FAC1601
Assignment 4 Semester 1 2024
Unique Number: 215199
Due Date: 20 May 2024
DISCLAIMER & TERMS OF USE
1. Educational Aid: These study notes are designed to serve as educational aids and should not be considered as a
substitute for individual research, critical thinking, or professional guidance. Students are encouraged to
conduct their own extensive research and consult with their instructors or academic advisors for specific
assignment requirements.
2. Personal Responsibility: While every effort has been made to ensure the accuracy and reliability of the
information provided in these study notes, the seller cannot guarantee the completeness or correctness of all
the content. It is the responsibility of the buyer to verify the accuracy of the information and use their own
judgment when applying it to their assignments.
3. Academic Integrity: It is crucial for students to uphold academic integrity and adhere to their institution's
policies and guidelines regarding plagiarism, citation, and referencing. These study notes should be used as a
tool for learning and inspiration, but any direct reproduction of the content without proper acknowledgment and
citation may constitute academic misconduct.
4. Limited Liability: The seller of these study notes shall not be held liable for any direct or indirect damages,
losses, or consequences arising from the use of the notes. This includes, but is not limited to, poor grades,
academic penalties, or any other negative outcomes resulting from the application or misuse of the information
provide
Downloaded by: nattiefellow9 | nattiefellow9@gmail.com Want to earn
]
Distribution of this document is illegal R13,625 per year?
, Stuvia.com - The study-notes marketplace
Question 1 This information relates to the 24 questions below:
Answer saved
Time left 0:20:10
SolaMin CC is a profitable business in the maintenance of solar systems for mines in Ermelo, Mpumalanga. The CC has presented you with the following information for the preparation of the statement of cash flows for the previous financial year ended 31 August
Marked out of 2023:
3.00
Flag
question Extract from the statement of financial position as at 31 August 2023:
2023 2022
R R
Long-term loan 323,800 225,200
SARS ⏤ current tax payable 72,200 51,000
Trade payables control 158,900 85,900
Loans from members 137,800 14,200 OSCAR THE TUTOR
Accrued water and electricity expenses 7,000 3,400
Distribution to members payable 92,700 128,300
Revaluation reserve 18,600 - 0737560989
Retained earnings 273,600 94,000
Members’ contributions 1,828,600 1,681,600
for FAC MAC ECS DSC TAX
Fixed deposit 25,100 12,800 QMI FIN
Vehicles at cost 147,000 -
Equipment (at cost) 695,700 617,300
INV BNU STA tutorials
Land and buildings 1,051,700 795,100
Accumulated depreciation: equipment 107,800 38,100
Loans to members 87,200 28,000
Trade receivables control 66,900 52,000
Investment (at fair value) 277,200 -
Inventory 150,300 85,900
Prepaid security expense 53,900 44,500
Dividend receivable 55,100 232,300
Bank 504,000 707,500
Extract from the statement of profit or loss and other comprehensive income for the year ended 31 August 2023:
R
Revenue ⏤ sale of maintenance parts 1,701,600
Revenue ⏤ maintenance services 1,013,800
Cost of sales 935,800 OSCAR THE TUTOR
Travel expenses 32,100
Repairs and maintenance expenses 38,900 oscardiura@gmail.com
Other operating expenses 266,000 0737560989
Water and electricity 108,800
Depreciation on equipment 191,400 for FAC MAC ECS DSC TAX
Security expenses 64,400 QMI FIN
Profit on sale of equipment 19,100
Interest income on loans to members 11,000 INV BNU STA tutorials
Interest expense on loans from members 24,000
Interest expense on long term loans 19,300
Investment income: dividend income 23,200
Income tax expense 168,900
Additional information
1. The company adopts the direct method for presenting cash flows from operating activities.
2. All inventory necessary for solar system maintenance—ranging from spare parts to entire solar panels—is procured and sold on credit terms.
3. This year, profit distributions totalling R194,000 were declared to members, reflecting the company's profitability and its commitment to returning value to its investors.
4. Over the financial year, significant refurbishments were made to the company’s operational facilities, including the storage building for solar components.
5. Interest on loans given to and obtained from members is capitalised. All loans to members are immediately callable, while the total amount due to partners is payable on 30 June 2026.
6. During the year, equipment essential for maintaining solar systems—bought originally at R19,000 and with accumulated depreciation, on the date of sale, of R7,000 — was sold as part of the company’s asset improvement strategy. The proceeds were reinvested in
acquiring new, more efficient and technologically advanced equipment on 30 June 2023. This new machinery is expected to enhance the efficiency of maintenance operations and support the company’s growth in the solar maintenance sector.
7. The company maintains a strategic investment in 11,000 ordinary shares of Ermelo Energy Resources Ltd, a move that aligns with its core business by investing in a company that is also involved in the renewable energy sector. This investment was acquired at a
cost of R24 (per share) and the shares traded at R25.2 on 31 August 2023.
8. Land and buildings were appraised by an independent valuer and all the adjustments have been correctly recorded in the financial records of the CC.
9. On 31 August 2023, the finance managed discovered that the maintenance team had granted one of the customers a discount of R2,500 on a maintenance job done on the day. This is yet to be recorded by the finance team.
10. One of the members contributed a second-hand bakkie to the CC for use by the maintenance team to carry spare parts when travelling to different client sites. No other contributions were made by the members to the CC.
Which of the following alternatives represents the correct amount that must be disclosed as cash receipts from customers
under cash ows from operating activities section in the statement of cash ows for SolaMin CC for the year ended 31 August 2023?
Downloaded
Downloaded
by: jerinanokuhlobataka
by: nattiefellow9 | nattiefellow9@gmail.com
jerinanokuhlobataka@ymail.com Want to earn
a. R2,703,000
b. R1,689,200 Distribution of this document is illegal R13,625 per year?
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller nattiefellow9. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.46. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
85169 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now