[jeff]

Welcome to the Q2 2017 CPA Exam Study Group for FAR. 🙂

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

[rwglapalma]

@rlarivee01

I wouldn't worry about it too much. When is your test date? I'm testing May 12 and consistently scoring in the 60-70 range. I notice about half of the ones I get wrong, it's because I'm skimming the question and answering too quickly, instead of reading it through, which may be part of your problem too.

I read the book and took my own notes/wrote down the ninja notes once, now I'm just trying to do all of the sims and tons of MCQs, while watching lectures and taking more thorough notes on my weakest topics.

I also constantly listen to ninja audio and becker lectures while I'm commuting/at work. As long as you're learning from your missed questions, ie taking notes of why you got it wrong, I wouldn't stress on your first time scores. Of course, this is my first time taking any test of the exam so I may not be the best person to respond.

We can do this!

[mckan514w]

Just lurking around here because I am still a little at lose ends not having to study 24-7 ha ha ha and wanted to wish everyone testing soon good luck! reading through with all of the questions on SIMs- I have to say the one thing that helped me the most last time in prepping for Sims was taking some of those REALLY LONG A@@ MCQ questions that you see with all of that info (especially the ones in Gleim) and acting like they were a MCQ- so doing a JE for each part of the info given and then finding (or trying to find) not only the information they were asking for but the info they weren't as well. So for example if the question was asking me to find Operating Cash Flow- I would then go through the information and find Financing and Investing Cash flows as well

Anyway GOOD LUCK ALL!!!!

and they ask me why I drink...

FAR- 61-next time I'll ask for lube instead of a calculator
REG-75- Never been so happy to see such a low grade
BEC- 8/11
AUD- 9/2

[rlarivee01]

I haven't passed a test yet, but I've been close. 72 on BEC and 64 on AUD, so I “know” I can do it. But that “know” hasn't made its way to “confident”

I moved my test back to May 11, and I only work 17 hours a week, so I have all the time in the world to study, but it's hard to do it constantly.

Once I get all the MCQ done I'll go over piece by piece, taking notes on the things I keep getting wrong. Then go to the books to work them through one step at a time.

[Anonymous]

@mtaylo24, I'd saw governmental would be greatly appreciated. Thanks in advance

[mtaylo24]

General Fund
Adopt Budget
Dr. Estimated revenues – sales taxes
Dr. Estimated Other Financing sources – face amt of bonds
Cr. Appropriations
Cr. Estimated Other Financing Sources – transfer to Bad Debt
Cr. Budgetary Fund Balance

Special Revenue Fund – Highway Maintenance
Dr. Estimated Revenues ‐vehicles license fees
Cr. Appropriations – salaries
Cr. Appropriations – wages
Cr. Appropriations – road equipment
Cr. Appropriations – construction Materials
Cr. Budgetary fund balance

Special Revenue Fund – HWY maintenance
Underestimated materials
Dr. Budgetary Fund Balance
Cr. Appropriations – construction materials

Year End Closing
General Fund
Dr. Appropriations
Dr. Estimated Other Financing Sources – Transfer to debt service fund
Dr. Budgetary Fund Balance
Cr. Estimated Revenues – Sales Taxes
Cr. Estimated Other Financing Sources – bond proceeds

Special Revenue fund – highway maintenance
Dr. Appropriations – salaries
Dr. Appropriations – wages
Dr. Appropriations – road Equipment
Dr. Appropriations – Construction materials
Dr. Budgetary Fund balance
Cr. Estimated Revenues – vehicle license fees

The state contracted to purchase road maintenance equipment
Special revenue fund
Dr. Encumbrance
Cr. Encumbrance outstanding

Delivery of equipment
Dr. Encumbrance outstanding
Cr. Encumbrances

Equipment cost less than anticipated
Dr. expenditures – road equipment
Cr. Vouchers payable

Year‐end closing
Dr. Encumbrances outstanding
Cr. Encumbrances

Revenues
11/30
Dr. Cash
Cr. Deferred inflow of resources – property tax

12/1
Dr. Property taxes receivables
Cr. Deferred inflow of resources – property tax
Cr. Allowance for uncollectible taxes

1/1/2
Dr. Deferred inflow of resources – property taxes
Cr. Revenues – Property taxes

Non‐exchange transaction
State provides grant to county
Dr. Expenditures
Cr. Vouchers payable
Dr. Due from State
Cr. Revenues

Bonds – Issuance
State issues bonds for construction
Dr. Cash
Cr. Bonds Payable

Capital Projects fund – highway patrol headquarters buildings
Dr. Cash
Cr. Other Financing sources – bond face amount
Cr. Other financing sources – bond issue premium

Progress payment is made
Dr. Expenditures – capital outlay
Cr. Cash

Bonds Retirement
Dr. Bonds Payable
Dr. Interest Expense
Cr. Cash

Governmental funds
General Fund
Dr. OFS – interfund transfer to debt service fund
Cr. Due to debt service fund

Debt Service Fund
Dr. Due from general fund
Cr. OFS – interfund transfer from general fund

Resources are transfered
General fund
Dr. Due to debt service fund
Cr. Cash

Debt Service Fund
Dr. Cash
Cr. Due from General Fund

Expenditures are recorded
Debt Service Fund
Dr. Expenditures – bond principal
Dr. Expenditures – Bond interest
Cr. Bonds Payable
Cr. Interest Payable

Current portion of the debt is repaid
Debt Service Fund
Dr. Bonds Payable
Dr. Interest payable
Cr. Cash

Special Assessments
Bonds are Issued
Dr. Cash
Cr. Bonds Payable – Special Assessment

Improvements are finished
Dr. Infrastructure Assets
Cr. Cash

Bonds are issued
Dr. Special Assessment receivable
Cr. Revenue – Special Assessment

Factory owner pays the assessment
Dr. Cash
Cr. Special Assessment receivable

Bonds are retired and interest is capitalized
Dr. Bonds Payable
Dr. Infrastructure Assets
Dr. Interest Expense
Cr. Cash

Bonds are issued
Capital Projects Fund
Dr. Cash
Cr. OFS – Bonds payable

Contractor is paid for the building the improvements
Capital Projects Fund
Dr. Expenditures – Special Assessment
Cr. Cash

Factory owner is assessed for the full amt and int
Debt Service Fund
Dr. Special assessment receivable
Cr. Revenue – special assessment

Factor owner pays the assessment
Debt Service Fund
Dr. Cash
Cr. Special Assessment receivable

Bonds are retired
Debt Service Fund
Dr. Expenditures – Special assessment bond
Dr. Expenditures – interest
Cr. Cash

General Fund lends 600,000 to internal service fund
General Fund
Dr. Interfund Loan receivables – current
Cr. Cash

Internal Service fund
Dr. Cash
Cr. Interfund loan payable‐ current

If noncurrent, asset is not spendable
General Fund
Dr. Fund balance – unassigned
Cr. Fund balance – nonspendable

A government pays for unemployment benefit coverage
General fund
Dr. Expenditures – unemployment compensation
Dr. Expenditures – Information services
Cr. Cash

Enterprise Fund – Unemployment compensation
Dr. Cash
Cr. Revenue

Internal Service Fund – info services
Dr. Cash
Cr. Revenue

Governmental Activities
Dr. Expenses – Unemployment compensation
Cr. Cash

Business Type activities
Dr. Cash
Cr. Revenue

Transfers within governmental activities
General Fund
Transfer is recognized
Dr. OFS – Transfer to debt service Fund
Cr. Due to debt service fund

Debt Service Fund
Dr. Due from general fund
Cr. OF

Transfer is made
General Fund
Dr. Due to debt service Fund
Cr. Cash

Debt Service Fund
Dr. Cash
Cr. Due from General fund

Transfer between activites
Transfer is recognized
General Fund
Dr. OFS – transfer to municipal hospital fund
Cr. Due to municipal hospital fund

Enterprise Fund
Dr. Due from general fund
Cr. Interfund Transfer from general fund

Transfer of cash is recorded the same way
General Fund
Dr. Due to municipal hospital fund
Cr. Cash

Enterprise Fund
Dr. Cash
Cr. Due from General Fund

Government‐wide stmts
Governmental activities
Dr. transfer to municipal hospital funds
Cr. Cash

Business ‐type activities
Dr. Cash
Cr. Transfer from general fund

Purchase of road maintenance equipment
General Fund
Dr. Expenditures ‐ rent
Cr. Vouchers payable

Special Revenue Fund – highway maintenance
Dr. Expenditures – road equipment
Cr. Vouchers payable

The entries from road maintenance and rental expense
Dr. Rental Expense
Cr. Vouchers Payable
Dr. Road Equipment
Cr. Vouchers Payable

Supplies and prepays are recorded
General Fund
Dr. Expenditures – supplies
Dr. Expenditures – Insurance
Cr. Vouchers Payable

Year‐end entries
General Fund
Dr. Inventory of supplies
Dr. Prepaid Insurance
Cr. OFS – Inv Increase
Cr. OFS – PPD Increase
Dr. Unassigned Fund balance
Cr. Fund balance – nonspendable for increase in supplies
Cr. Fund balance – nonspendable from increase in prepaid insurance

Consumption Method
General Fund
Dr. Inventory of supplies
Dr. Prepaid Insurance
Cr. Vouchers Payable

Year end
General Fund
Dr. Expenditures
Cr. Inventory of supplied
Cr. Prepaid Insurance

Capital Lease
Dr. Equipment – Cap lease
Cr. Cash
Cr. Capital Lease Obligation

At the end of year, lease is amortized
Dr. Interest Expense
Dr. Capital Lease Obligation
Cr. Cash

Gov’t Funds
Lease is recorded
Dr. Expenditures – leased assets
Cr. Cash
Cr. OFS – capital lease

Payment at year end
Dr. Expenditures – interest
Dr. Expenditures – Principal
Cr. Cash

Landfills
Gov’t Wide Financial Statements
Dr. Expense – Landfill closure
Cr. Landfill closure liability

Progress payment is made
Dr. Landfill closure liability
Cr. Cash

Progress payment
General Fund
Dr. Expenditures – landfill closure
Cr. Cash

Compensated Absences
General Fund
Dr. Expenditure – compensated absences
Cr. Liability

Government Wide financial statements
Dr. Expenses
Cr. Liability

Works of Art and Historical Treasures
Government‐ wide financial statements
Dr. Work of Art
Cr. Cash

General Fund
Dr. Expenditures – work of art
Cr. Cash

If used in enterprise fund
Govt wide financial stmts
Dr. work of art
Cr. Revenue – donation

AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
REG - 55 (2/16) 69 (5/16) Retake(8/16)
BEC - 71(5/16) Retake (9/16)
FAR - (8/16)

[Anonymous]

@mtaylo24, thanks a million. This will be my third attempt at FAR, 67, 73 now I need a 79 to keep my scores counting

[mtaylo24]

I guess I'm in the same boat. I need a 77 LOL!

AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
REG - 55 (2/16) 69 (5/16) Retake(8/16)
BEC - 71(5/16) Retake (9/16)
FAR - (8/16)

[HoldMyBeerCPA]

Saved, screenshotted, printed, uploaded to various cloud services, changed to desktop background on all computers, emailed to three different email addresses with a cc to myself, and saved to all USBs and floppy disks.

Hopefully, I've done enough to backup these entries 🙂

[krstnam]

@SallyCPA – If it were me I would switch to notes and MCQs. With NINJA MCQs, it shows you the areas you're weak in….what I've done is gone back through the corresponding BECKER lectures/practices. They've helped especially because BECKER has a tendency to do the practices on the subjects I needed help with anyway.

I've had problems with SIMS so I'm reviewing SIMS as well. I prefer the BECKER sims over NINJA, so I've been reviewing the Becker ones. It's helpful because the BECKER sims I've picked have been pretty comprehensive.

[SallyCPA]

@krstnam Totally agree. I was hesitant on doing that because I thought I was the only one who thought that NINJA MCQ was better than Becker, especially considering NINJA's adaptive learning feature. I'm going to start chipping away at the NINJA test bank but still use the skill practice and sims with Becker.

[krstnam]

The exams I took, the SIMS were the nail on the coffin for me I think. I had no idea what the were asking for on some – I got a comprehensive CF SIM and a comprehensive inventory/sales cycle with weird caveats that I didn't know how to handle. Because of that, I'm hitting those areas. I was surprised how many stmt of CF questions I got. In my first exam, I was surprised with how many NFP questions I got. I'm hoping this exam will surprise me with the non-mon exchanges and bonds because I know those areas pretty good…knock on wood lol

Question: any good tips on handling deferred tax assets/liabilities. I keep getting these questions wrong. 🙁

[SallyCPA]

@krstnam SIMS are definitely the luck of the draw. Have you started using the skills practice with Becker? I think those are honestly better than doing the sims by yourself…

[Anthony]

@krstnam You know how the exam is going to play you..they give you things that you don't want or you are weak at, but you never get the topics that you want or you're strong at.

[krstnam]

@SallyCPA Yes, I love the skills practice. That has been the majority of things I've reviewed with BECKER this time around. I've heard other people say it's a waste of time, but for me it explained things well and I think it shows you how some of the problems translate into journal entries.

I think that's where I've faltered in the past – not knowing how the questions move into JEs.

12 days for my exam. I'm on my 2 week crunch 🙂 Everybody in my house knows to leave me alone and don't upset me LOL.

[HoldMyBeerCPA]

Just got wrecked in my latest study session, a 20-MCQ burst on discontinued ops, leases, and bonds. Only was able to squeak out 12 correct answers. Yesterday, I felt great after studying, today that confidence is gone.

550 questions into the MCQs and I'm averaging 76% and trending at 62%. Still haven't hit the Govt't section yet, but I will this weekend. I'll know then where I stand heading into the last two weeks before my exam.

[Author]

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