Tricks that have been noticed so far.

[Desline]

Let's start from the start
1.2.1.
For the rent, it was 1200 per month
Oh yea, Credit Terms are 5/14, n/30. If you don't know what that means, you've got bigger things to worry about.

1.2.2.
Not much of a trick, but you had to bring the balance forward into July.

1.2.3.
The transaction on 11 June was cross referenced only to Bank, but the transaction on the 27th was Bank/Discount Expense

1.2.4.
Again, not much of a trick, but there was a GST refund of $1000 from the ATO, which wasn't the starting balance.

1.2.6.
At the start of the question they told us that "Financial reports are prepared annually on 30 June.
Sooo... You're calculating Rent Paid/Incurred for the whole year? (:
The final figures are:
P/L - Rent Expense $12000 ($1000 per month for 12 months)
B/S - Prepaid Rent Expense $3600 (for the next 3 months, $1200 per month [YOU KINDA DID THIS IN THE PREVIOUS QUESTION])
CFS - Prepaid Rent Expense $15600 (1000 per month for 12 months AND the $3600 for the next 3 months)

1.3.5.
Not recording drawings of stock would have no effect on Owner's Equity as it overstates Owner's Equity by $55 (understated Drawings), and understates Net Profit by $55 (understated Stock Gain), leading to an overall no effect on Owner's Equity.

1.4.1.
Not much of a trick either, but you had to adjust for 2.5 months.

2.2.
A question that a clear answer has not arisen yet from all the discussion.

2.3.1.
Not many tricks here, remember not to include Cost of Sales, split the loan principle and interest.

2.4.1.
Holy shit. Okay let's list them out:
1. You had to adjust for Advertising for 1 month
2. You had to adjust for the 9000 Rent for a total of 6000 incurred
3. Accrued Wages of 1000
4. The idiot owner CR Vehicle in his original adjustment so you had to:
DR - Vehicle 7200
CR - Depreciation Expense - Vehicle 3600
CR - Accumulated Depreciation - Vehicle 3600
5. Do nothing with the stock loss.

2.4.6.
Yea, this question was just fucked.

2.5
Remember the Accrued Wages from before? Herp Derp.

Feel free to post more if I forgot any.

[cibicl]

Let's start from the start
1.2.1.
For the rent, it was 1200 per month

1.2.2.
Not much of a trick, but you had to bring the balance forward into July.

1.2.3.
The transaction on 11 June was cross referenced only to Bank, but the transaction on the 27th was Bank/Discount Expense

1.2.4.
Again, not much of a trick, but there was a GST refund of $1000 from the ATO, which wasn't the starting balance.

1.3.5.
Not recording drawings of stock would have no effect on Owner's Equity as it overstates Owner's Equity by $55 (understated Drawings), and understates Net Profit by $55 (understated Stock Gain), leading to an overall no effect on Owner's Equity.

1.4.1.
Not much of a trick either, but you had to adjust for 2.5 months.

2.2.
A question that a clear answer has not arisen yet from all the discussion.

2.3.1.
Not many tricks here, remember not to include Cost of Sales, split the loan principle and interest.

2.4.1.
Holy shit. Okay let's list them out:
1. You had to adjust for Advertising for 1 month
2. You had to adjust for the 9000 Rent for a total of 6000 incurred
3. Accrued Wages of 100
4. The idiot owner CR Vehicle in his original adjustment so you had to:
DR - Vehicle 7200
CR - Depreciation Expense - Vehicle 3600
CR - Accumulated Depreciation - Vehicle 3600
5. Do nothing with the stock loss.

2.4.6.
Yea, this question was just fucked.

2.5
Remember the Accrued Wages from before? Herp Derp.

Feel free to post more if I forgot any.

So far 1.2.1 you paid 3600 for rent, right?
Damn 1.3.5
The accrued wages was a 1000 not a 100 I'm pretty sure? (2.4.1)
Heaps of tricks!!

[Desline]

So far 1.2.1 you paid 3600 for rent, right?
Damn 1.3.5
The accrued wages was a 1000 not a 100 I'm pretty sure? (2.4.1)
Heaps of tricks!!

Ahhh yep, thanks that was a typo, it's late =P

Yep in 1.2.1. you paid 3600 + 360 GST for the rent
Yea, 1.3.5. had me really thinking :/

[cibicl]

So far 1.2.1 you paid 3600 for rent, right?
Damn 1.3.5
The accrued wages was a 1000 not a 100 I'm pretty sure? (2.4.1)
Heaps of tricks!!

Ahhh yep, thanks that was a typo, it's late =P

Yep in 1.2.1. you paid 3600 + 360 GST for the rent
Yea, 1.3.5. had me really thinking :/

Haha OK well, I guess I didn't fall for too any of them! THanks for posting them

[andyzpipe]

from just reading this i fell into like all these tricks i think:S

[BoredSatan]

The trick that the reporting period was a year in question 1 D:
damn me for not reading it carefully and screwing up the reporting table

[Desline]

The trick that the reporting period was a year in question 1 D:
damn me for not reading it carefully and screwing up the reporting table

Thanks, I'll add that in Bok Bok

[cibicl]

The trick that the reporting period was a year in question 1 D:
damn me for not reading it carefully and screwing up the reporting table

I did that too

[Bowler09]

1.3.5.
Not recording drawings of stock would have no effect on Owner's Equity as it overstates Owner's Equity by $55 (understated Drawings), and understates Net Profit by $55 (understated Stock Gain), leading to an overall no effect on Owner's Equity.

Was just wondering about this one. If you withdrew stock for personal use, would it affect Net Profit at all, since it is a non-cash transaction? Wouldn't it only affect drawing?

[MaddehZ]

1.3.5.
Not recording drawings of stock would have no effect on Owner's Equity as it overstates Owner's Equity by $55 (understated Drawings), and understates Net Profit by $55 (understated Stock Gain), leading to an overall no effect on Owner's Equity.

Was just wondering about this one. If you withdrew stock for personal use, would it affect Net Profit at all, since it is a non-cash transaction? Wouldn't it only affect drawing?

drawings of stock wouldnt affect net profit if it was recorded
it would if the drawings were omitted

doesnt matter whether its a non-cash transaction or not, the p&l statement only cares about revenues earned & expenses incurred during the reporting period

[Desline]

1.3.5.
Not recording drawings of stock would have no effect on Owner's Equity as it overstates Owner's Equity by $55 (understated Drawings), and understates Net Profit by $55 (understated Stock Gain), leading to an overall no effect on Owner's Equity.

Was just wondering about this one. If you withdrew stock for personal use, would it affect Net Profit at all, since it is a non-cash transaction? Wouldn't it only affect drawing?

Drawings of stock doesn't affect Net Profit, but as MaddehZ said, not recording the withdrawal of stock would decrease the Stock Gain or increase the Stock Loss.

[Bowler09]

1.3.5.
Not recording drawings of stock would have no effect on Owner's Equity as it overstates Owner's Equity by $55 (understated Drawings), and understates Net Profit by $55 (understated Stock Gain), leading to an overall no effect on Owner's Equity.

Was just wondering about this one. If you withdrew stock for personal use, would it affect Net Profit at all, since it is a non-cash transaction? Wouldn't it only affect drawing?

Drawings of stock doesn't affect Net Profit, but as MaddehZ said, not recording the withdrawal of stock would decrease the Stock Gain or increase the Stock Loss.

Ah ok I see. Thanks for the replies, I understand now.

[Desline]

Were there any other tricks that have been noticed after going through the exam with friends/teachers?

[ech_93]

1.3.5.
Not recording drawings of stock would have no effect on Owner's Equity as it overstates Owner's Equity by $55 (understated Drawings), and understates Net Profit by $55 (understated Stock Gain), leading to an overall no effect on Owner's Equity

Sorry, but I can't understand how it could be no effect... Wouldn't Stock control (A) be overstated, no effect on L, then OE would have to be overstated, if you think about the accounting equation....

[123456k]

I think the question was talking about owner's equity effect and not stock directly. Even if the drawings wasn't recoreded, the stocktake would had dected a a stockloss or decrease in stock gain. Therfore in anyway possible onwer's equity will still be decreased by whatever the amount was. It's just that net profit would be understated stated and onwer's equity would stay the same as it's still being decreased. Stock control wouldn't be overstated as there is a loss in anyway possible as well. Decrease in stock gain or drwaings of stock. It still involves a loss.

Enough of this and just move on with unit 4.