[jeff]

I’ve had a few requests for April/May Study Groups…March will be here before you know it.

In order to take an early April exam, you should begin studying…now. 🙂

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[jrosen92770]

Rather random, but with 2 months left, I redefining the acronym of FAR to be Fear Achieves Results…

BEC - 5/26/2013 75
REG - 8/31/2013 82
AUD - 11/24/2013 74, 2/9/2014 92
FAR - 5/25/2014 85

NY CPA

[Anonymous]

@JRosen–Is the answer to your cash question $1,400,000?

[ChristieF]

@jrosen, would that be $1.4M?

[jrosen92770]

CPAMommy – You are correct.

Explaination below:

U.S. Treasury bond, purchased 3/1/92, maturing 2/28/93 (365 days

from the date of issue is not a cash equivalent, even though it is

due only 2 months from the balance sheet date)

BEC - 5/26/2013 75
REG - 8/31/2013 82
AUD - 11/24/2013 74, 2/9/2014 92
FAR - 5/25/2014 85

NY CPA

[rvcpa]

Mommy-

Choice “a” is correct. Since Jane owns 90% of Dun and 100% of Beech, when they declare and pay dividends, the only amounts that should appear in their year-end consolidated financial statements are the dividends paid to outsiders or external parties. Intercompany dividends should be eliminated upon consolidation. In this case, the only non-controlling interest that exists is the 10% of Dun that Jane does not own. So all 100% of Beech's $100,000 dividend would be eliminated, but only 90% of Dun's $100,000 would be eliminated. Therefore, just 10% of Dun's $100,000 dividend, or $10,000, will appear in Jane and subs' year-end consolidated financial statements.

Choice “b” is incorrect. $100,000 is incorrect since we do not present half the dividends just because we don't own 100% of one sub.

Choice “c” is incorrect. $190,000 out of $200,000 in dividends are “eliminated”, leaving us with $10,000 reported in the consolidated financial statements.

Choice “d” is incorrect. $200,000 are the total dividends declared, but the $190,000 paid to Jane gets eliminated when the financial statements are consolidated.

[Anonymous]

Dang it! Thanks for the explanation. Committing it to memory in 5,4,3,2,1..

[Kenada]

jrosen92770 – to your cook question

I think you add the 350 K, 250 K 800K and the 500k to get cash and cash equivalents.

I think you include the 500K as its maturing within 90 days from the balance sheet date 12/31/92.

— Just read the answer – really — need to go back and read that part again.. hmmmm

CA Candidate. 05/27/2014 ~ 786/110
I am done!!

[jrosen92770]

Marr Co. had the following sales and accounts receivable balances, prior to any adjustments at year end:

Credit sales

$ 10,000,000

Accounts receivable

3,000,000

Allowance for uncollectible accounts (debit balance)

50,000

Marr uses 3% of accounts receivable to determine its allowance for uncollectible accounts at year end. By what amount should Marr adjust its allowance for uncollectible accounts at year end?

BEC - 5/26/2013 75
REG - 8/31/2013 82
AUD - 11/24/2013 74, 2/9/2014 92
FAR - 5/25/2014 85

NY CPA

[Anonymous]

Thats what I thought too @Kenadas comments.

[ChristieF]

@jrosen, do they adjust by $40,000 to make it $90,000?

[jrosen92770]

Kenada – I thought the same, Becker's explanation is below:

U.S. Treasury bond, purchased 3/1/92, maturing 2/28/93 (365 days

from the date of issue is not a cash equivalent, even though it is

due only 2 months from the balance sheet date)

BEC - 5/26/2013 75
REG - 8/31/2013 82
AUD - 11/24/2013 74, 2/9/2014 92
FAR - 5/25/2014 85

NY CPA

[Anonymous]

$40,000?

[rvcpa]

140,000?

[jrosen92770]

FrostyCPA – There is a trick to this one, the balance in the allowance is a debit.

BEC - 5/26/2013 75
REG - 8/31/2013 82
AUD - 11/24/2013 74, 2/9/2014 92
FAR - 5/25/2014 85

NY CPA

[jrosen92770]

RVCPA – You are correct.

BEC - 5/26/2013 75
REG - 8/31/2013 82
AUD - 11/24/2013 74, 2/9/2014 92
FAR - 5/25/2014 85

NY CPA

[Author]

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