[jeff]

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

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

[rwglapalma]

Hi everyone, I am back. Took FAR on Friday and it was both good and bad. I think if I was graded only on Sims I'd pass for sure, but MCQ kicked my ass. Is it still supposed to be good if the second testlet seems harder than the first one? I felt like I “knew” only 10 or so answers on the second testlet of mcqs, and made educated guesses on the other ones. Like I said Sims were solid except for one, which I am praying was a non-graded question. I finished with time so spare, and I won't be surprised either way if I pass or fail. I'm bumping up my BEC and REG tests so if I did fail I can re-take in Q4. I would really suggest taking the AICPA practice exam and finding ways to get familiar with DRS questions. If anything I was just glad to attack the beast and know that even if I didn't pass this round, I can crush it the next round. Sorry for being vague, don't want to violate and disclosure stuff. Best of luck to everyone on here and thanks for everyone that shared JEs and trouble questions!

[sydalexomar]

@C.P.A third … definitely need to know bonds. I saw that all over my test with SIMS and MCQ. Its an easy concept though. FACE plus minus discount/premium= CV * effective interest = Interest Exp/income – cash payment (face * stated rate * time)=amortization. Remember the formula and plug.

[Anonymous]

Everyone keeps telling me to know the JEs. But how do you learn JEs when you don't do lectures or read the text?

[Anonymous]

lol everything you guys are telling me is making me less confident. I simply don't know this sh*t….

[mtaylo24]

^^^^Personally, I copied all of my JEs straight from the text and I save time to at least browse through the examples. Doesn't mean I read the entire chapter word for word or waste hours highlighting what T.G. tells me to.

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]

I don't think there is anyone I hate more in the world than Tim Gearty. Not 1 single person.

[mtaylo24]

^^^^Alright Scholar…easy now 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)

[Anonymous]

https://www.principlesofaccounting.com/illustrative%20entries/entrieslist.htm

This was posted once before somewhere on here. Its a pretty good sample of some JEs that relate to FAR all in one place.

[Anonymous]

Hey, again, Tim! I, again, hate you, again, more than…again…anyone in the world. I spend, again, more time counting, again, the amount of times you, again, say the word ‘again' than I, again, do studying.

[stina71223]

Hi All!

I am preparing to tackle FAR again in July and want to get some input about the “higher order thinking skill” questions. I have access to Becker and Ninja – what set of material captures and tests the complexity of the new question type? I am open to purchasing additional material – I'll do anything at this point. I had Becker from my first go around and became a Ninja after to narrow things down a bit. Any input is greatly appreciated ya'll!

[Anonymous]

Don't waste your money. You have plenty of materials to pass. Keep studying.

[stina71223]

This may be a silly question — but is there a clear indication on which questions are testing the higher order skills?

[Pawn Maker]

Hey guys,

Am I missing something here, I thought that to get to the net realizable value of AR required that we deduct the allowance. I got a question wrong though when I deducted it and the explanation acutally states that the allowance is irrelevant…is there some special rule regarding when the allowance is deducted. My text doesn't have anything regarding an exception…

The Avec Company’s account balances at December 31, year 1, for accounts receivable and the related allowance for uncollectible accounts were $800,000 and $40,000 respectively. An aging of accounts receivable indicated that $71,100 of the December 31 receivables may be uncollectible. The net realizable value of accounts receivable was

$688,900

$728,900 <==== correct according to them.

$760,000

$768,900

This answer is correct. Since the total receivables per the books were $800,000 and accounts receivable of $71,100 were estimated to be uncollectible, those expected to be collectible were $728,900 ($800,000 − $71,100). The $40,000 is irrelevant as it represents the unadjusted balance of the allowance for uncollectible accounts.

[Pawn Maker]

stina – I doubt that that kind of information is being handed out. I would just look around on this forum and see what people who have taken the new exam say about it. Hopefully if we study enough and have the concepts down we will pass. At the end of the day we are the guinea pigs…

[mckan514w]

Popping in to wish everyone (especially you @Mtaylo) good luck!!!

@third I found the most helpful way to learn the JE's was to do them for each MCQ I was doing and kept a master list of them. This also proved helpful on exam day with the first couple of questions when your brain “freaks out” with OMG I forgot everything. If you know your JE's and how to apply them then you haven't… 🙂 GOOD LUCK

In the vein @pawn maker – work your T accounts JE's and it will help you read and understand the question. Your YE AR balance is 800 and your your YE Doubtful Accounts is 71.1 the 40 represents the unadjusted balance.

YE:
DR AR 800
CR Sales Revenue 800

DR Allowance Doubtful Accounts 71.1
CR AR 71.1

Or in other words prior to YE close you have:
DR Allowance Doubtful Accounts 40
CR AR 40

So you need to do an adjusting entry of 31.1 to bring it to YE estimations
DR Allowance Doubtful Accounts 31.1
CR AR 31.1 (this brings your Doubtful accounts balance to the stated estimation of 71.1)

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

[Author]

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