[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]

Stoleway – are you still confused why its 1,400 ?

If so then there is my attempt to help explain

Firstly the Booker did this JE

DR AR 700

CR Bank 700

We know this is wrong as CR Bank is reducing the bank balance instead of increasing it

Next the right JE is this.

DR Bank …. 700

CR AR …. 700

In order to correct this you need to post the the correct JE twice

Once to cancel the effect the incorrect JE had and the second one to book it the right way.

You can also instead of two doing JE's to correct the situation do one JE ins tea

DR Bank 1,400 ( One set of 700 to reverse Mistake and one set of 700 to book it the right way)

Cr AR 1400

[Anonymous]

WANNABE_CPA – can you share which Investment questions where Bad ?

Just did a progress test session and didn't do too bad.

Anyone here using Wiley think that the SIM are super Easy ?

[Anonymous]

They turn out to be easy, but I keep looking for the catch and screw it up. I am also not sure about the forms, there was one for PBO, I couldn't even understand where I should be entering numbers

[NJPRU]

stoleway – i believe the answer to your question is 50,000.

A4S and H2M are investing activities while Trading are more so Operating.

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

IM GOING TO BE A CPA!!!!!

[stoleway]

@npjru

$50000 is correct.

@kenada

Thx for the explanation:)

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

Mass-CPA

[Anonymous]

On January 2, year 1, Troquel Corporation bought 15% of Zafacon Corporation’s capital stock for $30,000. Troquel accounts for this investment by the cost adjusted for fair value method and carries the securities in an available-for-sale portfolio. Zafacon’s net income for the years ended December 31, year 1, and December 31, year 2, was $10,000 and $50,000, respectively. During year 2, Zafacon declared a dividend of $70,000. No dividends were declared in year 1. How much should Troquel show on its year 2 income statement as income from this investment?

$ 1,575

$ 7,500

$ 9,000

$10,500

[WANNABE_CPA]

@annna D…10500

FAR : 68, 74, 83 Thank you God 🙂
BEC : 78 (8/27) 🙂
REG : 72 ,80 (2/25) 🙂
AUD : 69,67, 07/23

[Anonymous]

no the answer is 9000

Under the cost adjusted for fair value method, the investor records the investment at cost, adjusts the carrying amount for subsequent changes in fair value, and records dividends received as income. However, dividends received in excess of the investor’s share of investee’s earnings since acquisition are recorded as a reduction in the investment account. Such distributions are treated as a return of capital (liquidating dividend). In this case, Troquel’s share of the dividend is $10,500 ($70,000 × 15%). However, Troquel’s share of Zafacon’s earnings since acquisition is only $9,000 ($60,000 × 15%). Thus, only $9,000 can appropriately be recorded as investment income.

[jrosen92770]

Just going to shoot off some random IFRS here….

Present 3 balance sheets and 2 of each other financial statement, when an entity makes an accounting change retroactively or make a retrospective restatement. NOTE GAAP does not require comparative f/s, but SEC does.

IFRS does NOT include concept of change in accounting entity.

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]

Summary of significant accounting policies includes disclosure of judgements and estimates (GAAP only includes significant estimates).

Key management comp required (Not required for GAAP. SEC requires Proxy statement outside F/S).

Effective tax rate may be calculated using enacted or substantially enacted changes in tax rates.

Segment disclosures includes segment profit or loss, segment assets and segment liabilities (if segment liability measure is regularly provided to chief operating decision maker).

% of completion is required unless final outcome cannot be reliably estimated in which case cost recovery is required. COMPLETED CONTRACT METHOD NOT ALLOWED.

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

[WANNABE_CPA]

@anna what is $60,000 ?how did u get that?how is the cost adjusted for fair value..where is this concept on becker?

FAR : 68, 74, 83 Thank you God 🙂
BEC : 78 (8/27) 🙂
REG : 72 ,80 (2/25) 🙂
AUD : 69,67, 07/23

[stoleway]

Wannabe…

I hate this question cos it breaks all the details into tiny bits.

But RE at year 2 is 60,000 ( yr1 + yr2 income)….even though the company paid dividends of 70000, RE is 60000 so 10000 of this dividend will liquidate a portion of shareholders investment.

Hope this helps.

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

Mass-CPA

[jrosen92770]

Inventory is reported at the lower of cost or NRV. Reversal of write downs is allowed for subsequent recoveries of inventory value.

LIFO PROHIBITED.

Fixed Assets reporting using one of 2 models: Cost Model or Revaluation Model.

Revaluation losses are reported on I/S ad gains (SURPLUSES) are reported in OCI.

INVESTMENT PROPERTY (Land and/or Building held to earn rental income or for capital appreciation)- Classification does not exist in GAAP. Can be reported using COST Model or Fair Value Model (No Depreciation and changes in FV reported in I/S).

Depreciation – Method must be reviewed for appropriateness on each B/S date. Component depreciation is required.

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

[Guti]

I think the following question might help some of you during the exam,but I dont know the answer.

If you only own 10% equity in a company,but you can exercise control. How would you account for this investment?

FAR-84
AUD-
REG-
BEC-

[NJPRU]

Hey J – I'm going to be calling it a night and then I'll be busy all day tomorrow with Receivables, Combinations, and Intangibles. I want to wish you the best of luck. You're a great contributor here and I want to personally thank you for all your input and your help along the way. 🙂

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

IM GOING TO BE A CPA!!!!!

[Author]

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