Last Question... How the **** do you get cost of sales?

[AnotherBrickInTheWall]

Was it just me or was there no mark up given?

The question went:
On 10 dec 2011 Total Towels received an order from Motel Vegas for 100 towels. Price for each is $50 plus $5 GST. A deposit was paid on same day of $400. On 20 Jan 2012 the towels were delivered accompanied by an invoice that basically says:

- invoice price $5000
- GST $500
- less deposit $400
-Balance owing: $5100

Show journal entries for 20 Jan 2012

[mmmmm]

You don't have to do it. When they pay, it goes in the CRJ.  I think.

[sam.utute]

What happens if I just wrote:
     DR. Cost of Sales
           CR. Stock Control

[_avO]

Wait whaT? cost of sales as in the reconstruction of accounts?

[Albeno69]

i have no idea i did sale/cost of sales and got 1.6 and that was my mark up

[_avO]

WTF WAS THE MARK UP QUESTION??

[Stormer]

There was no fixed mark up. They didn't give us Cost of Sales... The entire thing should have been in the Sales Journal anyway. I'm thinking...full marks for anyone who attempted?

[_avO]

There's no cost of sales for that was there? Uhh shit..

Wasn't the CRJ something like
Prepaid sales revenue 400

Then later in the GJ its like
DR Prepaid sales revenue  400
    CR Sales                          400


Oh.. i got it no cost of sales so ur stock control and gst clearing is different

Yea maybe full marks

[sam.utute]

Was it just me or was there no mark up given?

The question went:
On 10 dec 2011 Total Towels received an order from Motel Vegas for 100 towels. Price for each is $50 plus $5 GST. A deposit was paid on same day of $400. On 20 Jan 2012 the towels were delivered accompanied by an invoice that basically says:

- invoice price $5000
- GST $500
- less deposit $400
-Balance owing: $5100

Show journal entries for 20 Jan 2012

I could not see any mark-up given, nor the cost price of the stock. So my answer was:

Prepaid Sales Revenue             400
    Sales Revenue                             400
Debtors Control                     5100
Debtor - Name                                          5100
    Sales                                        4600
    GST Clearing                               500
Cost of Sales
    Stock Control

[Stormer]

There's no cost of sales for that was there? Uhh shit..

Wasn't the CRJ something like
Prepaid sales revenue 400

Then later in the GJ its like
DR Prepaid sales revenue  400
    CR Sales                          400


Oh.. i got it no cost of sales so ur stock control and gst clearing is different

Yea maybe full marks

There would have been, it was just never stated. That's why the question was so stupid. Since there was an invoice, not a memo, it should have been in the Sales Journal. Very poorly written question; very poorly written exam in general.

[_avO]

I wrote all that except for COS and stock control :/

All the theory was pretty shit

[Stormer]

I wrote all that except for COS and stock control :/

All the theory was pretty shit

Same. They're not gonna take marks off me for not writing entries with no figures surely

Theory questions were...different

[_avO]

Hmm what did you guys write about why the accountant wanted to know expected sales.. i wrote something to do with relevance and decision making but not sure..

[mmmmm]

what did you guys get for acc. depn and depn for the first question?

and did you guys get a negative bank at end figure for the cash flow statement?

[mmmmm]

Hmm what did you guys write about why the accountant wanted to know expected sales.. i wrote something to do with relevance and decision making but not sure..

I said because sales increase with some expenses (Eg. Advertising, Wages) so in order to prepare accurate budgets, the sales figure is crucial.
:S