unsure questions on exam

[nbalakers24]

rlobo, are you saying 20000 is not part of the 30000 capital?

[mtwtfss]

i think i had

wages expense 61400
accrued wages 1800

Yeah realised that after I walked out, you had to realise it was a post adjusted trial balance and that the wage figure was after the accrued figure had been calculated into it.

Ahhh, dont think many people have realised it?

[mtwtfss]

rlobo, are you saying 20000 is not part of the 30000 capital?

Pretty sure the bank balance at 1/1/09 was 20,000 and this is the value required at the 1/1/09 in the CFS.

[nbalakers24]

i think i had

wages expense 61400
accrued wages 1800

Yeah realised that after I walked out, you had to realise it was a post adjusted trial balance and that the wage figure was after the accrued figure had been calculated into it.

Ahhh, dont think many people have realised it?

so you agree that, that is right?

rlobo, are you saying 20000 is not part of the 30000 capital?

Pretty sure the bank balance at 1/1/09 was 20,000 and this is the value required at the 1/1/09 in the CFS.

yep i had that down, but alot of people is saying it is included in the $30k.

man accounting is so confusing.

[mtwtfss]

You're right, I realised it on the train home haha, how stupid can i be closing off the account with 65000 to the P+L summary when clearly i had just used 63200 as the value in the P+L..farkkkkkk

hope i actually did this and got it right just didnt remember that i did hahaha

prets sure its 20,000 as well

and effect of the credit sale in 1.7:

sales understated
stock gain overstated
cost of sales understated

yeah ?

[monokekie]

there was an entry into the cash receipts journal on 1Jan under the general journal for opening of double entry. so i reckon this is the same cash receipts journal that would be used to record the cash receipts for this six months?

[nbalakers24]

i just had

sales understated
cost of sales understated

forgot stock gain

[gossipqueen]

I first put the balance at $20000, but then I changed it to $0.

I thought that if it's a new business, they start out with no bank balance, because it's their first reporting period.

I'm not sure though...

Also for the omitting a credit entry question, I did cost of sales and sales. I don't understand how stock gain could be there, if the entry was omitted, then woudn't the business have no record that a sale happened, and so it wouldn't be reported in the stock cards either?

Gah I love accounting, but it's so confusing...

[monokekie]

why stock gain overstatedd? lol

[nbalakers24]

there was an entry into the cash receipts journal on 1Jan under the general journal for opening of double entry. so i reckon this is the same cash receipts journal that would be used to record the cash receipts for this six months?

go to page 4, last post by rlobo. the post is pretty convincing. hopefully its right lol

[nbalakers24]

why stock gain overstatedd? lol

cost of sales decreases stock

if you omit that, your are overstating stock as it should decrease

? hopefully that is wrong because i didnt put down stock gain

[monokekie]

i don't really trust teachers that much rofl.

Some of vce teachers in my school taught accounting for only 1 year haha....

[mtwtfss]

why stock gain overstatedd? lol

cost of sales decreases stock

if you omit that, your are overstating stock as it should decrease

? hopefully that is wrong because i didnt put down stock gain

Hopefully we're both right in some impossible way?

but nah if it was worth 3 marks, pretty sure there would have to be 3 entries, and trust me i busted my gut looking for the last effected account hahaa

[plbuck]

That Credit Sale question confused me the most.

I put credit sales and cost of sales down however for could not think of the third.

Looking back over I don't see how the stock gain could be part of that question.

If a transaction was not recorded and the stock was taken that would be a stock loss.
If a transaction was recorded and the stock was not taken that would be a stock gain.

What these VCAA people think of.

[Lemollin]

Hopefully we're both right in some impossible way?

but nah if it was worth 3 marks, pretty sure there would have to be 3 entries, and trust me i busted my gut looking for the last effected account hahaa

Still dont get why Stock gain would be overstated =[