[futuremdcpa]

Becker sucks at explaining this concept of discounting note payables, and interest etc.. they mention it in one small paragraph with NO calculations.. then on the supplementary questions.. WOW.. I am getting them ALL wrong.

Thanks to F4 I am now behind 1 whole day on my already tight freakin schedule.

REG: PASS || BEC: PASS || AUD: PASS || F: SCORE PENDING..

[futuremdcpa]

guys.. i honestly feel like giving up.. in the last few days I've been at the library all day.. and have started to notice im doing less and less.. my friggin exam is in 2.5 weeks and im only on F4……

REG: PASS || BEC: PASS || AUD: PASS || F: SCORE PENDING..

[Excited_CPA]

@ futuremdcpa

Hey, I just saw your post and hoped this could help.

1. To discount a note, take the TOTAL amount of cash that you would have received at the maturity of note (face plus interest), and then multiply by the discount % that the bank is offering.

2. Subtract this “discount” from the TOTAL amount of cash that would be received, and this is how much the bank will pay for the note.

3. The Interest Income is the cash paid from the bank for the note, less the face value of the note.

Example: You have a $1,000 note, due in 2 years paying 10% interest. This means the TOTAL amount of cash you will receive is $1,200 ($1,000 face, plus the 10% interest for 2 years).

A bank is willing to buy the note from you at a discount of 5%. Therefore, the discount is $60 (1,200 x 5%).

The total amount of cash that the bank will pay you is $1,140 ($1,200 – $60).

Your interest income would be $140 (the amount of cash you received, less the face value of the note).

—-

This is all the information I had for discounting notes from an old flashcard; let me know if there's a particular problem with numbers that you still have trouble with. I hope the explanation helped!

BEC 04/14/12 87
FAR 08/28/12 88
AUD 10/06/12 94
REG 02/09/13 91

[Excited_CPA]

and keep at the studying; you'll do great.

BEC 04/14/12 87
FAR 08/28/12 88
AUD 10/06/12 94
REG 02/09/13 91

[jenuno01]

Seems to me like you need to pick up the pace son. As for the Supplementary questions on Becker, I did not do all of them. They are good practice, but some of them were used in the 1990s. Given your time crunch, I would just do a few and move on. If you have time once you're done with all the material, then come back to them. The good news is that Govt and NFP Accounting go pretty quick, so you're not completely screwed.

Class of 2012

[futuremdcpa]

@Excited_CPA – THANK YOU!!! That made sense for quiet a few of them.. Becker never went into detail about the calculation.. I was just seeing it for the first time through the multiple choice questions.

@jenuno01 – I know.. I keep getting a day or so behind .. at the moment I have about 11 days of REVIEWING which I will do all MCQ's 2-3 times more.. but wow I am overwhelmed.. I keep getting burned out.

REG: PASS || BEC: PASS || AUD: PASS || F: SCORE PENDING..

[momto5]

Is there any reason you can't move your test back a few weeks to give yourself some breathing room? With this being your last one, you want to give yourself every advantage possible, and if a few extra weeks would help insure your passing, why not?

FAR - 92 (4/27/12)
AUD - 96 (7/17/12)
BEC - 92 (8/30/12)
REG - 91 (11/12/12)

[futuremdcpa]

I start work 2 days later, and then a week after that I travel for training for another week and the training is almost through the night.. This is really the only time I can do it.

I hope I can finish the chapters by Saturday. That would give me 12 days or so, and I would be okay. Im skipping SIM's at the moment to save some time. I will review them and look over the answers a week before the exam to get a feel for them..

REG: PASS || BEC: PASS || AUD: PASS || F: SCORE PENDING..

[Author]

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