[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

[Anonymous]

@Mom – Is it B?

[jasbeerch]

@Cpamommy. I have to learn a lot then since my exam is on April 10th. Its close …:((

Anyway, is it B- Interest is a current liability each yr.

[NJPRU]

I've been lurking. lol. I can't answer any of these questions yet cause I haven't learned any of them yet. 😛 Almost done with catching up on my two day deficit with intangibles. Should be done soon and then i'll be able to start payables and taxes tomorrow.

Any advice on these two items?

AUD: DONE
FAR: DONE
BEC: DONE
REG: DONE

IM GOING TO BE A CPA!!!!!

[jrosen92770]

In my Richard Dawsonesque voice,

Survey says B?

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]

@jasbeerch–I'm right there with you. April 12th for me. We can do it!

@NJPRU–I'm going through the quizzes I have taken and posting questions I got wrong. There will be other topics, I promise.

Yes to all the answer was B.

[jrosen92770]

BTW how are preferred dividends in arears treated?

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]

@NJPRU–feel free to throw out some questions too.

@JRosen–I wish I could help, but Stockholder's Equity is my worst topic. That's why I'm going through that quiz now. I still don't udnerstand a lot of it. 🙁

[jasbeerch]

if preferred dividends are declared, then the liability is created.

[Anonymous]

Derby Co. incurred costs to modify its building and to rearrange its production line. As a result, an overall reduction in production costs is expected. However, the modifications did not increase the building’s market value, and the rearrangement did not extend the production line’s life. Should the building modification costs and the production line rearrangement costs be capitalized?

Building, production line rearrangement costs, both, or neither

[missbehaved8907]

Does anyone else have a hard time with questions this long? I can barely get halfway through without thinking – oh well i'm not going to know it.. 🙁

A state requires quarterly sales tax returns to be filed with the sales tax bureau by the 20th day following the end of the calendar quarter. However, the state further requires that sales taxes collected be remitted to the sales tax bureau by the 20th day of the month following any month such collections exceed $500. These payments can be taken as credits on the quarterly sales tax return.

Taft Corp. operates a retail hardware store. All items are sold subject to a 6% state sales tax, which Taft collects and records as sales revenue. The sales taxes paid by Taft are charged against sales revenue. Taft pays the sales taxes when they are due.

Following is a monthly summary appearing in Taft's first quarter sales revenue account:

Debit Credit

January $ − $ 10,600

February 600 7,420

March − 9,540

Totals: $ 600 $ 27,560

In its financial statements for the quarter ended March 31, Taft's sales revenue and sales taxes payable would be:

Sales revenue Sales taxes payable

a. $27,560 $1,560

b. $26,960 $600

c. $26,000 $960

d. $26,000 $1,560

REG (08/2011 - 73)
AUD (01/2013 - 63) (04/2013 - 72)
FAR (11/2013 - 61) (02/2014)- 71)
BEC - No attempt

[NJPRU]

Here is a Franchise Accounting Question:

Each of Potter Pie Co.’s 21 new franchisees contracted to pay an initial franchise fee of $30,000. By December 31, Year 1, each franchisee had paid a nonrefundable $10,000 fee and signed a note to pay $10,000 principal plus the market rate of interest on December 31, Year 2, and December 31, Year 3. Experience indicates that one franchisee will default on the additional payments. Services for the initial fee will be performed in Year 2. What amount of net unearned franchise fees would Potter report at December 31, Year 1?

A. $400,000

B. $630,000

C. $600,000

D. $610,000

AUD: DONE
FAR: DONE
BEC: DONE
REG: DONE

IM GOING TO BE A CPA!!!!!

[jrosen92770]

When they in arears, nothing happens, until they are declared?

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

[missbehaved8907]

Well the formatting got messed up some, so it may be hard to understand. The numbers in the first part are debit then credit for the month listed. Then the options are sales revenue then sales taxes payable for each option.

REG (08/2011 - 73)
AUD (01/2013 - 63) (04/2013 - 72)
FAR (11/2013 - 61) (02/2014)- 71)
BEC - No attempt

[Anonymous]

Yes. I hate long questions. Unfortunatley they are going to be there. The first thing I do is read the last sentence where they are actually stating the question they want answered. That way I know what to jot down as I'm reading through the problem. It helps get through the reading if I know I'm searching for something instead of just reading a bunch or junk that may or may not be relevant.

[jasbeerch]

@ production line arrangement cost…is it correct?

[Author]

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