[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

[NJPRU]

Just got home from work! Let the madness begin! Hope all of you are well! Thinking about you guys and hoping we continue staying strong this week!

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

IM GOING TO BE A CPA!!!!!

[Anonymous]

How in trouble am I if I don't understand consolidating entries well? I can do the acquisition method backwards and forwards and I know the very basics of the eliminating entries but if there was a question regarding inventory eliminations, I wouldn't have a clue how to answer it. Should I spend a couple hours figuring it out or would my time be better spent reviewing?

[NJPRU]

Joe – you're 8500/6500 split is correct. I remember reading in the Cash Flows section of Gleim that cash overdraft is still considered cash rather than a liability.

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

IM GOING TO BE A CPA!!!!!

[jrosen92770]

In answer to the previous question. You are correct. Keep in mind that you also need to close out you activity as well. Becker has a memory tool called BAE-BAE. You record and close out Budget-Activity and Encumbrances for the exact amounts initially entered. What was the answer regarding your question on 49?

Government Fund are the GRaSPP Funds (General, Special Revenue, Debt Service, Capital Project, and Permanent Funds) and have a current financial resource focus and use the modified basis of accrual. While the Governmentwide have a current economic resource focus and use accrual basis accounting. Governmentwide financials include the Government Funds (converted to Accrual) + Internal Service, which make up the government activities section. There is also a section for business activities, and these are the Enterprise Funds.

Someone double check me here.

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

[NJPRU]

I agree with everything written Joe. 🙂

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

IM GOING TO BE A CPA!!!!!

[jrosen92770]

Amanda – For the inventory piece you have to consider the cost of sales and inventory. So if company A sells a product that cost them $100,000 to company B for $120,000 then we must first eliminate the sales and cos. The profit made with the company B is $20,000, so we need to eliminate it.

Company A – Initial Entry

Dr. AR $120,000

Cr. Sales $120,000

COS $100,000

Inventory $100,000

Company B – Initial Entry

Dr Inventory $120,000

Cr A/P $120,000

If Company B sells 1/2 the inventory than 1/2 the profit is in inventory and the other is in COS

Consolidated EJE

Dr. Sales $120,000

Cr. COS $110,000 (100,000 + 10,000 portion of what was sold by company B)

Cr. Inventory 10,000

Assume AR/AP were settled prior to year end.

Does this help?

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

[stoleway]

Which of the following would be reported in the income statement of a proprietorship?

a) Proprietor’s Draw

b) Depreciation

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[jrosen92770]

depreciation

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]

draw is an equity item

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]

Doing all these SIMS, I feel punch drunk

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

[stoleway]

@JOE

Depreciation is correct ..I forgot to RTMFQ and I got it wrong…very painful….lol

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[jrosen92770]

I made my share of RTMFQ's today 🙂

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

[stoleway]

The following data apply to a unit of inventory:

Selling price

$22

Selling cost

2

Normal profit margin

5

Replacement cost

10

Using the lower of cost or market (LCM) method of measuring inventory, what is the market amount for this unit of inventory?

A. $15.00

B. $10.00

C. $17.50

D. $20.00

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[NJPRU]

A. 15.00

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

IM GOING TO BE A CPA!!!!!

[NJPRU]

Envoy Co. manufactures and sells household products. Envoy experienced losses associated with its small appliance group. Operations and cash flows for this group can be clearly distinguished from the rest of Envoy’s operations. Envoy plans to sell the small appliance group with its operations. What is the earliest point at which Envoy should report the small appliance group as a discontinued operation?

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

IM GOING TO BE A CPA!!!!!

[Author]

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