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QUESTION FOUR (15 Marks) Star (Pty) Ltd purchased new equipment to replace equipment that it...

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Accounting

QUESTION FOUR (15 Marks) Star (Pty) Ltd purchased new equipment to replace equipment that it has used for five years. The company paid a net purchase price of R200 000, brokerage fees of R5 000, legal fees of R2 000, and freight and insurance in transit of R3 000. In addition, the company paid R1 500 to remove old equipment and R2 000 to install new equipment. Calculate the cost of new equipment for Star (Pty) Ltd and process the journal entry to record the purchase of the equipment paying R70,000 in cash. QUESTION FIVE (20 Marks) Use the following information to answer the given questions. Mandela (Pty) Ltd 2022 2021 Market Price Per Share 5000 5 452 Dividend Per Share 120 130 Earnings Per Share 452 455 Number of Shares Issued (Class A) 1 000 000,00 900 000,00 Net Asset Value 50 252 000,00 45 520 524,00 Net Asset Value Per Share 50, 25 55,58 Calculate and explain what the following ratios for both years mean for Mandla (Pty) Ltd

5.1 Price-earnings ratio

5.2 Dividend yield

5.3 Market-to-book ratio

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