FAC1601 ASSIGNMENT 2 SEMESTER 3 OF 2024 EXPECTED QUESTIONS AND ANSWERS(with pure workings)

FAC1601 ASSIGNMENT 2
SEMESTER 3 OF 2024
EXPECTED QUESTIONS
AND ANSWERS(with pure
workings)


Question 1: Statement of Comprehensive Income and Statement of
Financial Position
Given Information:

● Revenue: R500,000
● Cost of Sales: R350,000
● Operating Expenses: R50,000
● Tax Rate: 28%
● Equipment: R120,000
● Accumulated Depreciation: R40,000
● Accounts Receivable: R25,000
● Cash: R30,000
● Share Capital: R250,000
● Retained Earnings (beginning): R40,000
● Dividends Paid: R20,000

Solution:

1. Statement of Comprehensive Income for the year ended 31 December 2023
Details Amount (R)

Revenue 500,000

Less: Cost of Sales (350,000)

Gross Profit 150,000

, Less: Operating Expenses (50,000)

Profit Before Tax 100,000

Less: Tax (28% of 100,000) (28,000)

Net Profit for the year 72,000



2. Statement of Financial Position as of 31 December 2023
Assets Amount (R)

Non-Current Assets

Equipment (120,000 - 40,000) 80,000

Current Assets

Accounts Receivable 25,000

Cash 30,000

Total Assets 135,000


Equity and Liabilities Amount (R)

Equity

Share Capital 250,000

Retained Earnings (40,000 + 72,000 - 92,000
20,000)

Total Equity 342,000

Liabilities

None provided 0

Total Equity and Liabilities 342,000



Question 2: Adjusting Entries
Given Information: