[jeff]

Welcome to the Q1 2016 CPA Exam Study Group for FAR.

Some BLITZ videos to help your exams: https://www.another71.com/ninja-blitz

[MaLoTu]

Good Luck on Sunday, JSM … I hope that we both have success this attempt. I went over F10 … I did ok. I decided to study bonds and leases a little by doing sims. I am losing motivation, just so mentally fatigued, but Friday is almost here and I am ready to get this over with!!!

Thanks to everyone for the support!

[Anonymous]

This FAR exam does keep all of us busy! 🙁
@MaLoTo – good luck on Friday! I am also going to battle with far in a week! Just remain positive and keep your eyes on the prize… (Well, that's what I keep telling my self)

[Yaw]

how does FIFO differ from LIFO under LCM?

[SIMmer Down]

@Aguspesci78

I have Becker. Which one is the equivalent of Ninja Sim #8? Like what company name is in the question?

Becker has:

1)Bennett Corporation engages in three leaseback transactions as a seller/lessee:

• Sale of 10 trucks with a remaining useful life of 8 years. The trucks have a book value of $285,000

2) Acwen Corp. is a U.S. company which owns warehouse space that it regularly leases out to manufacturing companies. Bentley Inc. is the lessee on a new 4-year lease (beginning January 1, Year 1) with the following terms

[Kemi22]

Thanks for the responses (A/R recoveries vs. collections) ! 🙂

2010:
BEC: 74, 71, 74, 75
AUD: 71, 74, 83
REG: 71, 76
FAR: (I quit) 34, 45

2015:
BEC: 79
AUD: 78
REG: 67, 76
FAR: 56 (trial run), 74, 74, 74, 80!
Thank God. Your prayers are always answered! Do not give up. Thank you St. Joseph Cupertino.

[Anonymous]

Sim # 8

Kern, Inc., leased a copier for the office. Following is the information regarding the copier lease.
• Lease period: 4 years, beginning January 1, 20X4. The lease is noncancelable.
• At the end of the lease term, the lessee has the option to purchase the copier at fair market value.
• The fair market value of the copier (were it to be purchased now) is $28,500.
• The estimated economic life of the asset is 5 years.
• The implicit interest rate of the lease is 14%.
• The lease payment is $8,750 per year, payable in advance. This amount includes $270 in executory costs.
Excerpt from “Present Value of an Ordinary Annuity” Table:
Years 14%
3 2.3216
4 2.9137
5 3.4331
On January 1, 20X4, what are the journal entries that must be made? First choose the accounts that would be affected and then fill in the numbers under debit or credit as appropriate. Although all shaded cells may not necessarily be used, an entry must be made in each cell.

[Anonymous]

FAR is horrible. I can't believe I'm feeling burnt out from studying and I haven't even passed a section yet. I'm usually a very self-motivated person…

Going for a run.

Hopefully, I'll feel less weepy when I return.

Good thing: I'm stronger in subjects I wasn't close to knowing well enough last time.

[Anonymous]

KLU Broadcast Co. entered into an agreement to exchange unsold advertising time for travel and lodging services with Hotel Co. As of June 30, travel and lodging services of $10,000 were used by KLU. However, the advertising service had not been provided. How should KLU account for travel and lodging in its June 30 financial statements?
A.
Revenue and expense is recognized when the agreement is complete.

B.
An asset and revenue for $10,000 is recognized.

C.
An expense and liability of $10,000 is recognized.

D.
Not reported

[marqzho]

Ooopsss

REG 90
FAR 95
AUD 98
BEC 84

[Anonymous]

Yes, B is correct
KLU has incurred expenses for travel and lodging and has a corresponding liability for unearned revenue. The revenue from providing advertising time is not earned and cannot be recognized as revenue until the advertising time actually has been provided for Hotel Co.

[Claudia408]

@marqzho – how are Roger's FAR lectures? About how many hours are they? I have 4 weeks to study for FAR bc my NTS expires… I don't expect to pass this beast, but just wanna get a sense how much I can get done in 4 weeks.

BEC - 75 (3x)
AUD - 78 (3x)
REG - 67, 66, Aug 1
FAR - 54, Sept 8

[marqzho]

full lecture is around 50hours

Cram course is around 15hours

REG 90
FAR 95
AUD 98
BEC 84

[MaLoTu]

I was doing a Becker sim (F1 sim 1) and it added a recalculation of depreciation expense to administrative ans selling expense? I don't understand why … can anyone explain?

[Anonymous]

@ marqzho, Hey the answer is C sorry I said yes. FAR is getting all my brain!!!

KLU Broadcast Co. entered into an agreement to exchange unsold advertising time for travel and lodging services with Hotel Co. As of June 30, travel and lodging services of $10,000 were used by KLU. However, the advertising service had not been provided. How should KLU account for travel and lodging in its June 30 financial statements?
A.
Revenue and expense is recognized when the agreement is complete.

B.
An asset and revenue for $10,000 is recognized.

C.
An expense and liability of $10,000 is recognized.

D.
Not reported

C is the correct answer: KLU has incurred expenses for travel and lodging and has a corresponding liability for unearned revenue. The revenue from providing advertising time is not earned and cannot be recognized as revenue until the advertising time actually has been provided for Hotel Co.

[Anonymous]

@MaLoTu, good luck tomorrow!!! and let us know how it goes!!! You can do it!!!

[Author]

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