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FAC2601 Assignment 3 Semester 2 2024 all Questions Covered
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FAC2601 Assignment 3 Semester 2 2024 all Questions Covered
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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
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