[tmturner74]

Is it ok to start a FAR Study Group? I retook Audit yesterday and although I don’t have a gut feeling either way if I passed or not, I am going to start on FAR. I am using Becker self-study and purchased the Ninja Notes for FAR.

I am looking forward to reading a/b everyone’s progression. Good Luck!

 

Aud- 11/28/12 (72), 02/27/13 (72), 04/06/2013 77!!
FAR-tbd
BEC-tbd
REG-tbd

[Tina82]

@gugushe: part 1 of your question:

% of total

market value bonds 510,000 = 510,000/555,000 = 0.919

market value warrants 45,000 = 510,000/555,000 = 0.081

total market value 555,000

sale price 530,000

bond 487,027 = 530,000*.919

warrant 42,973 =530,000*0.081

And the Entry:

Dr. Cash = 530,000

Dr. Discount = PLUG = (500,000+42,973)-530,000 = 12k discount

Cr. Bonds Payable = 500,000

Cr. APIC Warrants = 42,973

R - 74;88
A - 84
B - 74;89
F - no study = 67; May 15 = 87 & done

[Tina82]

@gugushe: part 1 of your question:

% of total

market value bonds 510,000 = 510,000/555,000 = 0.919

market value warrants 45,000 = 510,000/555,000 = 0.081

total market value 555,000

sale price 530,000

bond 487,027 = 530,000*.919

warrant 42,973 =530,000*0.081

And the Entry:

Dr. Cash = 530,000

Dr. Discount = PLUG = (500,000+42,973)-530,000 = 12k discount

Cr. Bonds Payable = 500,000

Cr. APIC Warrants = 42,973

R - 74;88
A - 84
B - 74;89
F - no study = 67; May 15 = 87 & done

[ggushee]

Thanks Tina for the answer. How did you compute the $510,000 mkt value for bonds. I am really struggling with this question so I appreciate you taking time to answer and help me out…

[ggushee]

Thanks Tina for the answer. How did you compute the $510,000 mkt value for bonds. I am really struggling with this question so I appreciate you taking time to answer and help me out…

[raymondsfamily]

@ggushee,

Tina took the FMV of the bond after issuance (500 bonds at $1000 at $102 Par) which equates to 500*$1000*1.02 = $510,000

F - 5/8/13 81
R - 74, 2/7/14 86
B - 74, 12/6/13 82
A - 70, 11/4/14 89!!!

I'm done 🙂 Many thanks to Jeff, A71 and Roger CPA!!!

MBA and CPA

[raymondsfamily]

@ggushee,

Tina took the FMV of the bond after issuance (500 bonds at $1000 at $102 Par) which equates to 500*$1000*1.02 = $510,000

F - 5/8/13 81
R - 74, 2/7/14 86
B - 74, 12/6/13 82
A - 70, 11/4/14 89!!!

I'm done 🙂 Many thanks to Jeff, A71 and Roger CPA!!!

MBA and CPA

[ggushee]

Thanks Raymondsfamily 🙂

[ggushee]

Thanks Raymondsfamily 🙂

[raymondsfamily]

@ggushee

For the second part, since this is discussing convertible bonds you would use the following information (fair value option is not elected):

-100 bonds originally issued on 1/1/2006

-$10 par value on 1/1/2006

-50 bonds converted 10/1/2010

-$104,300 bonds' carrying value 10/1/2010 (you would take half of this which is $52,150 because 50 out of the 100 bonds were converted)

DR Bond Payable (50 bonds at original $1000 each) $50,000

DR Premium ($52,150 less Bond Payable $50,000) $ 2,150

CR Common Stock (50 bonds * 20 CS shares * $10) $10,000

CR Common Stock APIC (plug) $42,150

F - 5/8/13 81
R - 74, 2/7/14 86
B - 74, 12/6/13 82
A - 70, 11/4/14 89!!!

I'm done 🙂 Many thanks to Jeff, A71 and Roger CPA!!!

MBA and CPA

[raymondsfamily]

@ggushee

For the second part, since this is discussing convertible bonds you would use the following information (fair value option is not elected):

-100 bonds originally issued on 1/1/2006

-$10 par value on 1/1/2006

-50 bonds converted 10/1/2010

-$104,300 bonds' carrying value 10/1/2010 (you would take half of this which is $52,150 because 50 out of the 100 bonds were converted)

DR Bond Payable (50 bonds at original $1000 each) $50,000

DR Premium ($52,150 less Bond Payable $50,000) $ 2,150

CR Common Stock (50 bonds * 20 CS shares * $10) $10,000

CR Common Stock APIC (plug) $42,150

F - 5/8/13 81
R - 74, 2/7/14 86
B - 74, 12/6/13 82
A - 70, 11/4/14 89!!!

I'm done 🙂 Many thanks to Jeff, A71 and Roger CPA!!!

MBA and CPA

[ggushee]

Thanks @raymondsfamily. You explained it is so clearly in such easy terms. Thanks to you and Tina for helping out. I spent the whole evening yesterday spinning my wheels and finally got very frustrated and gave up. You both are awesome 🙂

[ggushee]

Thanks @raymondsfamily. You explained it is so clearly in such easy terms. Thanks to you and Tina for helping out. I spent the whole evening yesterday spinning my wheels and finally got very frustrated and gave up. You both are awesome 🙂

[MrsBing]

It looks like I'm going to be taking FAR later than I wanted (with 16 + weeks of study, I better pass the first time). My application won't be approved until the Board meeting on 5/6. After approval, how long does it normally take for NASBA to send a payment coupon and then for them to send me a NTS after I pay? Should I be able to get an exam date in May?

Becker, Wiley Test Bank, and Ninja 10 Point Combo!

FAR: 89
REG: 87
AUD: 92
BEC: 75
Ethics: 90

Licensed Arizona CPA

[MrsBing]

It looks like I'm going to be taking FAR later than I wanted (with 16 + weeks of study, I better pass the first time). My application won't be approved until the Board meeting on 5/6. After approval, how long does it normally take for NASBA to send a payment coupon and then for them to send me a NTS after I pay? Should I be able to get an exam date in May?

Becker, Wiley Test Bank, and Ninja 10 Point Combo!

FAR: 89
REG: 87
AUD: 92
BEC: 75
Ethics: 90

Licensed Arizona CPA

[Anonymous]

@MrsBing…just to give you an idea of timing…I submitted my application on 2/15. They approved it on 2/22 and I received my NTS on 2/26. You should have no problems finding a date in May.

[Author]

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