23 FULLS The information below relates to questions 1 - 17 The following information pertains to Dolly Limited 1. Extract from ledger account balances as at 28 February 20.20 R 228 300 217 300 37 400 110 000 341 000 192 700 65 000 83 300 Share capital: Ordinary shares Share capital Preference shares Retained eamings Long-term loan - ABC Bank Land and buildings at cost Machinery and equipment at carrying amount Inventory Trade receivables control Listed investments Bank Trade payables control SARS (income tax) Dividends payable Dividends receivable Accrued expenses (wages) Prepaid expenses Revenue Cost of sales Administrative, distribution and other expenses Fair value gain on listed investments Dividends income Loss on sale of machinery and equipment Income tax expense Depreciation Wages Insurance expense 20.21 R 280 500 231 000 46 200 77 000 363 000 202 300 73 500 92 700 130 000 15 200 56 500 55 400 36 200 25 200 15 900 9 100 785 400 371 900 140 200 6 400 16 800 8 100 47 200 12 500 73 400 10 100 26 300 53 600 37 700 32 000 21 000 11 400 3 200 2. Additional information 2.1 The following pertains to property, plant and equipment 2.1.1 During the year machinery and equipment with a carrying amount of R35 000 was sold. This transaction has been correctly recorded 2.12 Land and buildings with a cost price of R50 000 were sold for cash at the same amount. Land and 2. Additional information 21 The following pertains to property, plant and equipment 21.1 During the year machinery and equipment with a carrying amount of R35 000 was sold. This transaction has been correctly recorded. 2.12 Land and buildings with a cost price of R50 000 were sold for cash at the same amount. Land and buildings are not depreciated. 213 All purchases of property, plant and equipment pertained to replacements and were paid in full. 22 On 29 February 20 21 Dolly Limited declared ordinary shares dividend of 38 cents per share whilst the preference share dividends amounted to R20 800 23 The interest expense on the long-term loan amounted to R8 500 and was added in the administrative, distribution and other expenses amount above. 24 On 31 August 20,20, when the total number of ordinary shares issued were 120 000 shares the shareholders approved the capitalisation issue of one (1) ordinary share for every four (4) ordinary shares held. The capitalisation issue was done from retained earnings at R0,50 per share. All other issued shares were paid for in cash QUESTION 2 Assume the correct cash receipts from customers is R800 000. Which of the following alternatives represents the correct amount that must be disclosed as cash generated from operations in the cash flows from operating activities section according to direct method in the statement of cash flows of Dolly Limited for the year ended 28 February 20.212 . A. 267 900 B. 333 900 . C. 280 900 D. 218 400 E. 133 200 F. 205 900 Reset Selection 23 FULLS The information below relates to questions 1 - 17 The following information pertains to Dolly Limited 1. Extract from ledger account balances as at 28 February 20.20 R 228 300 217 300 37 400 110 000 341 000 192 700 65 000 83 300 Share capital: Ordinary shares Share capital Preference shares Retained eamings Long-term loan - ABC Bank Land and buildings at cost Machinery and equipment at carrying amount Inventory Trade receivables control Listed investments Bank Trade payables control SARS (income tax) Dividends payable Dividends receivable Accrued expenses (wages) Prepaid expenses Revenue Cost of sales Administrative, distribution and other expenses Fair value gain on listed investments Dividends income Loss on sale of machinery and equipment Income tax expense Depreciation Wages Insurance expense 20.21 R 280 500 231 000 46 200 77 000 363 000 202 300 73 500 92 700 130 000 15 200 56 500 55 400 36 200 25 200 15 900 9 100 785 400 371 900 140 200 6 400 16 800 8 100 47 200 12 500 73 400 10 100 26 300 53 600 37 700 32 000 21 000 11 400 3 200 2. Additional information 2.1 The following pertains to property, plant and equipment 2.1.1 During the year machinery and equipment with a carrying amount of R35 000 was sold. This transaction has been correctly recorded 2.12 Land and buildings with a cost price of R50 000 were sold for cash at the same amount. Land and 2. Additional information 21 The following pertains to property, plant and equipment 21.1 During the year machinery and equipment with a carrying amount of R35 000 was sold. This transaction has been correctly recorded. 2.12 Land and buildings with a cost price of R50 000 were sold for cash at the same amount. Land and buildings are not depreciated. 213 All purchases of property, plant and equipment pertained to replacements and were paid in full. 22 On 29 February 20 21 Dolly Limited declared ordinary shares dividend of 38 cents per share whilst the preference share dividends amounted to R20 800 23 The interest expense on the long-term loan amounted to R8 500 and was added in the administrative, distribution and other expenses amount above. 24 On 31 August 20,20, when the total number of ordinary shares issued were 120 000 shares the shareholders approved the capitalisation issue of one (1) ordinary share for every four (4) ordinary shares held. The capitalisation issue was done from retained earnings at R0,50 per share. All other issued shares were paid for in cash QUESTION 2 Assume the correct cash receipts from customers is R800 000. Which of the following alternatives represents the correct amount that must be disclosed as cash generated from operations in the cash flows from operating activities section according to direct method in the statement of cash flows of Dolly Limited for the year ended 28 February 20.212 . A. 267 900 B. 333 900 . C. 280 900 D. 218 400 E. 133 200 F. 205 900 Reset Selection