[jeff]

FAR Resources:

Free FAR Notes & Audio – https://www.another71.com/cpa-exam-study-plan

FAR 10 Point Combo: https://www.another71.com/products-page/ten-point-combo

FAR Score Release: https://www.another71.com/cpa-exam-scores-results-release

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

[Anonymous]

@so1913 Don't worry, you have SO MUCH TIME! Just do whatever it takes to regroup and get focused starting right now, because if you commit yourself to the material from now to August 28th, you will be good to go!!

@Tanaya I am definitely going to do a few sims, including research, just to get the feel for the format, like you mentioned. This was my approach for AUD, and it felt great knowing that if I studied more practice sims, I probably would have wound up with the same result. I felt like the sims for AUD were such a crapshoot, and they were on some topics that I wasn't expecting, and one I had never even seen before (I couldn't even tell you what chapter it related to, lol). But yeah, I might take one practice exam when I have a few days left, just to really pinpoint my weaknesses, although I think I know what my weak areas are pretty well. The only problem I have with the practice exams are that they are mentally draining and very discouraging. I took the first Becker practice test for AUD and did terribly, and was too exhausted to do anything for the rest of the day. Uggggh there's just so many decisions to be made in the next couple of days – sounds like I am in desperate need of some NINJA Coaching!!

[Anonymous]

@Tanaya Something is wrong with those journal entries, because assuming that you would make the same credit to the N/R each year, you would eventually reduce principal by the total amount of the payments ($25045) and the initial principal balance was just $20,000. 😐 I think part of the payment amount ($5009) each year has to be interest income, so that the principal amount is reduced to an amount that will allow the total principal payments to equal the total principal. Think about what the journal entries would be if issued at market rate, and then try to modify that to get the entries with the discount. (Or maybe check the answers and try to think through why they did it the way they did?)

[That_Oher_Guy]

Help

On December 31, Moss Co. issued $1,000,000 of 11% bonds at 109. Each $1,000 bond was issued with 50 detachable stock warrants, each of which entitled the bondholder to purchase one share of $5 par common stock for $25. Immediately after issuance, the market value of each warrant was $4. On December 31, what amount should Moss record as discount or premium on issuance of bonds?

a. 90,000 premium

b. 200,000 discount

c. 40,000 premium

d. 110,000 discount

A: 110,000

It;s says the JE is

DR Cash 1090,000

DR Discount on Bond 110,000

CR Bonds Payable 1,000,000

CR APIC-Warrants 200,000

I can't figure out why the warrants and APIC are valued that high…

[so1913]

Thanks @DannyB_Live, hearing someone who knows this process say I still have time is SO reassuring. Yes, I'm taking things seriously from this point forward. Need to catch up to all you guys, you all are on it!

AUD - 90 Pass
REG - 70,61,81 Pass DONE DONE DOOOOONNEEE!!!!!!!!
BEC - 79 - Pass
FAR - 70,82 - Pass

[sbarkerACPA]

@that_other_guy For the initial JE you use the market value of warrants to credit to APIC-warrants $1,000,000/1000= 1000 the number of bonds issued. Each bond has 50 detachable warrants for a total of 50,000 detachable warrants. Credit APIC-warrants for the market value of the warrants 50,000*$4

BEC: 74;81
AUD: 77
REG: 71; 80
FAR: 78
License for CPA----APPROVED
CPA Class of 2013

[Anonymous]

@That_Oher_Guy It looks like they determined the total value of the Warrants and put that as APIC-Warrants. $1,000,000 of bonds which are $1000 each = 1000 bonds. Each has 50 detachable warrants, so 50,000 warrants. Each warrant is $4, so $200,000 worth of warrants. There's no information about the market value of the bonds, so the standard method when only one market value is known is to assume that the portion of the cash allocated to the warrants is the amount of the market value.

So, $1,000,000 of bonds issued at 109 means $1,090,000 of cash. If you subtract the $200,000 which is the only known/clear market value, then you have $890,000 remaining for bonds payable…which of course is $110,000 less than the face value of $1,000,000.

Does that make more sense?

[That_Oher_Guy]

Thanks

[LT-P]

@Elisbeth I realize I'm getting confused because normally we'd have to calculate the payments ($20,000*.08 = 1600) but we're told $5009 is the payment. Why is it so high? If I can understand this one thing I think I'll be able to work thru it .. thanks so much for helping me! This question is so discouraging :/

@Derek I'm wrong again! Hopefully I can figure this question out before test day!

- passed all 4 exams on my first try using Becker!

Ethics: TBD

[StephAV]

@grocho, I have to pass the WHOLE exam by 11/30 unfortunately. I figure if I don't pass any one part then I'm pretty much screwed and I'll be taking some pottery classes after I finish the exam.

My test was yesterday and it was pretty bad… I guess I got all moderate level mc testlets because the first one seemed the worst. Also, I freaked out watching the clock on the first one. I was like halfway through testlet 1 at 30 minutes in! So then I started rushing to make sure I didn't go over 45 minutes for the remaining questions. I rushed through testlet 2 and then finished testlet 3 and went back to check some answers. Went onto the sims with 2 hours to go. I didn't think the sims were as awful as people seem to be making them out to be. I had one with multiple tabs, which I actually prefer because you can split the screen versus scrolling up and down. There was 1 sim I know I got 100% correct and the rest I got at least partial credit. Overall I felt like some of the computational stuff that I spent a lot of time on didn't get tested a whole lot which was annoying. I had a bunch of acronyms ready that I didn't even get to use! GRRR!

FAR - 7/13 - 72, 11/13- 74, 2/14- 82!!! Best score ever (for me)!!!
BEC - 1/14 - 75!!! Perfect score! First Pass! YAY!!!
AUD - 8/14 - 80!!!
REG - 5/14 - 72, 10/14 - 66, 1/15 - 78 - DONE FOREVER!!!
I did 5 of the UNA and CPAExcel classes to earn units.

[Anonymous]

It's because it's paying interest and principal both. $20,000*.08=1600 would just be the official interest portion. It's like if you get a car loan for $5,000, your first payment will be mostly interest and a little principal, but by the end you'll be paying almost all principal and barely any interest. Say the payment is $500 and it's a 8% rate, then your first payment is 5000*.08 = 400 in interest, and just $100 in principal. Then your next payment is $500 again, the interest is $4900*.08 = $392, and this time you have $108 in principal. Is that making sense? In FAR/accounting terms, it's an annuity, rather than a…crap, what's it called…the bonds that have all the principal paid at once… Sometimes the bonds just pay interest annually or semi-annually and return the principal all at the end, but this one pays it as it goes, so that each year the lendor is paid the same amount.

Maybe a credit card vs a car loan would be the best example. If you have a credit card with a $3000 balance on it, your minimum payment will be the interest, but you don't have to pay any principle. At some point, though, you have to pay off the principal. So if interest is 25% (it's a credit card, so it'd be a high rate!), then every year you pay $750 of interest payments, but the balance stays $3000, and then one year you inherit money and you pay off the $3000 principal balance. That's like the bonds that you just pay the interest, $20,000*.08. But with a mortgage or a car loan, you always pay a bit of principal with your payment, and at the end, your last payment is the same amount as all the others were – so for your mortgage, you might pay $700/mo, and the first payment will be mostly interest, but your last payment when you pay it off will still be $700, and will be mostly principal. It'll be, like, $698 of principal, and the remaining $2 of interest on that $698 that you owed since your previous payment. And the mortgage or car loan is like this situation, where you're paying part of the principal balance each time you make a payment and the payments are the same amount every time.

Does this make more sense at all? I know it's a weird concept, especially since 99% of the time, bonds have the principal paid at the end!

[Anonymous]

@Peter, it looks like your questions got lost somewhere in the mix. To give you a painfully generic answer, you really need to find what works best for you. I, personally, struggle when attempting to read the textbook because it is so painfully boring and I feel like it numbs, rather than exercises, my mind, so I tend to use the textbook as a last resort if I am having recurring problems with concepts in MCQs. As for the practice exam, I am taking Jeff's advice by not completing any of them for FAR. I find them to be discouraging and mentally draining and, at the end of the day, they don't really tell you much (what does 80%, for example, really mean?). I believe that weak areas can be exposed AND corrected by doing as many multiple choice questions as time permits. To help mix up my pool of questions, I purchased the Wiley Test Bank from the A71 store and have found it to be very useful in questioning concepts from different angles than Becker.

As I always say (even though I'm no expert at this junk), there is no magic answer to my CPA exam questions that makes everything better. While I think that support, guidance, and expertise can be highly beneficial, I think that each candidate's success boils down to how they use their own resources to figure out, and commit to, a plan that works for them.

[LT-P]

@Danny when you say Jeff are you referring to the site owner? I'm thinking about skipping out on the practice exams as well .. my time is very limited and I really don't want to stress myself out with more questions. For BEC and REG I didn't even do the practice exams until the night before the exam so I didn't even go over what I did wrong.

@Elisabeth yes that does make sense, I was getting caught up in trying to match the information with a textbook example but because of the way the payments are set up, they weren't adding up. Thanks so much!!

- passed all 4 exams on my first try using Becker!

Ethics: TBD

[Anonymous]

@Tanaya yes, I am referring to Jeff, the creator of Another71. I actually spoke to him through NINJA Coaching this morning (which was pretty awesome) and he helped me make my final decision not to attempt any practice exams for FAR.

[NYCaccountant]

Hi,

Can I pass FAR with just the wiley testbank/book? I feel like I have been doing well using the test bank,low to mid 90's second time through, mid 80's first time through each section. I usually choose every multiple choice question I can find for each section, but unfortunately the second, third, fourth time I go through the section I have seen every question, don;t neccessarily remember the answer, but can figure out how to solve. Should I supplement Wiley with something else? can't help but feel that i'm being setup to fail come October. Also, are the Wiley questions comparable to real thing? or is cpareview a better comparison to the real exam? I find the questions on cpareview much more difficult than wiley, and usually average about a 75 first time through.

FAR - 93
REG - 87
BEC - 84!!!!
AUD - 99!!!!!! CPA exam complete.

[MintsRGood]

@NYCaccountant The Wiley textbook is dry, long, painful, and boring but if you grind through that entire textbook you will be in good shape for exam day! The Wiley textbook is what took me from a 68 to a 92 on my audit score, in addition to a lot of hard work! 😉 I have found that the Wiley book sims are much more difficult than test bank sims, and are more in line with what I've seen on my prior 3 sections. Just my 2 cents! 🙂

If you feel that you want to add more materials to your arsenal, you could try the Yaeger FAR Cram (boring yet extremely helpful, not too expensive) or check out the Ninja notes or Blitz (concise, cost effective, NOT boring). I like having a variety of materials at my disposal and I have both of the above mentioned, in addition to my Wiley gear. There is a tremendous amount of feedback on various review courses on the site and most all of the review companies have demos to check out before you fork over your visa.

Good luck!!! 🙂

REG: 75 DONE 🙂
AUD: 61, 71, 68, 92 DONE 🙂
BEC: 76 DONE 🙂
FAR: 72, 74, 79 DONE 🙂
Licensed Michigan CPA 🙂
-Some people dream of success...others wake up and work hard for it!!!
-The cowards never start and the weak die along the way!
-You better work, b***h!
-Only those who dare to fail greatly can ever achieve greatly.-JFK

[Author]

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