[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

[willpassby2014]

NJPRU-Correct. Can you please explain me this and also if Bargain price option amount is available should you add it to lease laiabiity?

BEC Passed
FAR Passed
AUD Passed
REG Passed

[Anonymous]

Good Luck to you too Wannabe 🙂

I am up for a while as well 😀 trying to get as much as i can done today night..

Tomorrow i just want to read my notes and – keep refreshing my head 🙂

[NJPRU]

If there is a bargain purchase option OR a residual guarantee, these should be added to the lease liability as follows:

PV of ordinary annuity/annuity due (depending on how they word the question) x the annual payment

+ present value of 1 x bargain purchase option amount/residual value amount (whichever they give you)

= present value of minimum lease payments

as far as the 5,200…

the present value of the minimum lease payment was 58,000 but the minimum payment was due immediately therefore you must subtract the 10,000 from the lease obligation, bringing you to 48,000. From there, you will multiply the PV of your minimum lease obligation by 10% because this is the amount of interest you will have to pay next year subtracted by your annual lease payment of 10,000 = 5,200 which equates to the current liability for the year. this number is what you will start reducing your lease liability by for the following year.

Note this was done using the effective interest method… just like bonds.

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

IM GOING TO BE A CPA!!!!!

[NJPRU]

As for me, it's 1AM and I have to be up for work in 5. I can't believe testing day is 1 day away. where did all the time go?!?! have a good night everyone!

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

IM GOING TO BE A CPA!!!!!

[Anonymous]

How did you get 5200

[Anonymous]

Please help me understand OCI.

I've been going through Becker and am confused on their DRs and CRs.

From BEcker F6-14:

JE to record amortization of pension expense:

DR Net periodic pension cost

CR OCI

1) If OCI has a normal CR balance, why would you CR OCI to remove the amortized amount out?

Also, from F3:

JE to record loss on IS for unrealized loss on trading securities:

DR Unrealized loss on trading securities

CR Valuation account

JE to remove unrealized loss from OCI:

DR realized loss

CR Unrealized loss (OCI)

2) would a CR to OCI increase OCI? or do you CR it with a negative amount? How does that even work?

To anyone who can help demystify this account, thanks in advance!

[stoleway]

@baci

The first payment of 10000 was made immediately, so your liability left at dec 31 will be 48000.

Acccording to Gaap you have to break this amount into current and non current portion.

Interest rate is 10% so you know you will be paying 4800 interest next year.

However you have to pay 10,000 every year to cover both interest and principal.

Subtract 4800 from 10,000, answer is 5200…thats how much your principal will reduce in the coming year.

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

Mass-CPA

[How many letters do you need]

Good luck NJPRU! Ill be looking for your exam experience and will see you in the score release thread

MBA,CMA,CPA, CFF?, ABV?

[Anonymous]

@1foryou19forme I haven't looked at my FAR stuff in awhile but if i remember correctly you think of OCI as Retained earnings. A positive balance is a credit so for available for sale investments

For a gain at YE

DR valuation account

Cr Unrealized gain

That increases OCI which in turn increases stock holders equity

Sale of the stock

DR unrealized gain to take the gain out of OCI

DR Cash

Cr Investment

Cr Realized gain recognizes on the income statement

As for Pension costs and the related OCI i have no idea, that stuff was way too confusing for me and didnt feel like spending a good amount of time learning when it could be spent learning other things.

[Anonymous]

The only thing i really know for pensions and OCI is that your do those JE's for tax purposes. Since your recognizing an expense ( service cost ) your gonna receive a tax benefit from it

[Anonymous]

Hiya – is anyone familiar with the Defined Pension Plans under Govt Accounting? I think its something new for 2014

Maybe someone would be kind enough to refresh my memory on this.

[Anonymous]

1foryou19forme

DR Net periodic pension cost

CR OCI

This entry must be for amortizing PSC or something.

when PSC is first recognized

DR OCI

CR PBO right?

Then

DR Pension expense

CR OCI

[NJPRU]

My exam is tomorrow and I'm at work and at the point where I cant eat and im so nervous my stomach is in knots! ahhhhhhhhh I just want to take this exam already!

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

IM GOING TO BE A CPA!!!!!

[NJPRU]

Good luck again Kenada and WannaBe!! You got this!

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

IM GOING TO BE A CPA!!!!!

[Not a Quitter]

NJPRU- You've got this!!!! It's evident from your posts on this thread. My exam is tomorrow and as for me- at this point I think I just need to pray, lol. I lose BEC if I don't pass this and hanging out on this thread has hurt my confidence. You guys are too good!

Good luck tomorrow!

FAR- 85 I'm DONE!
BEC- 75
REG- 60,60,75
AUD- 74,74,83

CPAExcel used for BEC, AUD, REG
Exam Matrix used for FAR plus NINJA Blitz, cpareviewforfree and a little CPAExcel

[Author]

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