[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

[Masry1989]

Hello guys , please does anyone knows whether testing in middle east the exams of CPA makes the credit expires or not in case I didn't get license within 3 years ??

Thanks

[NYCaccountant]

Prize Expense Dr. – 418,250

Note Payable Cr.- 950,000

Discount on note Dr.- 531,750

Assuming discount is straightlined:

Interest Expense Dr. – 27,986

Discount Cr. 27,986

Note Payable Dr. -50,000

Cash Cr. 50,000

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

[NYCaccountant]

Oh yeah, the initial entry for the first 50k would be:

Prize Expense Dr. 50,000

Cash Cr. 50,000

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

[newuseracc]

Is there a way to quote/reply to a specific post on these forums? Anyway..

But the problem says “signed a note payable to the winner for $1,000,000”..is there no journal entry for that? Is that first journal entry you wrote suppose to be the journal entry for part of problem I quoted? If so shouldn't it be:

Dr. Prize expense 468,250

Dr. discount 531,750

Cr. N/P 1,000,000

since it says 1 million.

also what is the difference between these 2 journal entries you wrote:

Note Payable Dr. -50,000

Cash Cr. 50,000

Prize Expense Dr. 50,000

Cash Cr. 50,000

in other words when does each of these occur.

The problem is asking for year 1 expense, but it says you don't pay the 50k until year 2 so how can that add to year 1 expense?

also is their a journal entry for purchasing the annuity? like

Dr. Annuity (asset)

Cr.Cash

?

[NYCaccountant]

Oh sorry, totally misread the question. I would record it like this:

Prize expense Dr. 468,250

Note Payable Cr.1,000,000

Discount on note Dr. 531,750

Note Payable Dr. 50,000 To record initial payment.

Cash Cr. 50,000

Annuity Dr. 418,250 To record Purchase of annuity.

Cash Cr. 418,250

Note Payable Dr. 50,000 To record second payment on note.

Annuity Cr. 50,000

Interest Expense Dr. 27,986 To record amortization of discount. Straight line over 19 periods.

Discount on note Cr. 27,986

This makes the most sense to me.

Also, they owe the total prize money at the end of the year, which is 1,000,000. Long term liabilities have to be discounted to

present value to reflect the passage of time. The 1,000,000, 20 years from now is only worth 468,250 today. So you recognize the 468,250 as the present value of the debt you owe, and the difference would be interest expense over the 20 years.

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

[titine]

newuseracc: The problem is asking for year 1 expense, but it says you don't pay the 50k until year 2 so how can that add to year 1 expense?

Expense already incurred on Dec 31 when they declared the winner. You don't need to wait until you pay to record expense under accrual basis.

[newuseracc]

Thanks @NYCaccountant Like talking out problems I don't fully get. Seeing journal entries always makes things more clear to me.

@titine I was just asking based off what NYCaccountant initially wrote, but thanks

[Mel]

Anybody have a good strategy for remembering how to do the deferred tax stuff? I am struggling with it.

[Mike1987]

I just took the 2 Becker finals over the past couple of days. I did not do that bad in Becker final exam #1 (76, 86, 96) but Becker final exam #2 brought me back down to earth (80, 83, 80). The questions were not long compared to final exam #1 but they were so tricky and I was 50/50 on so many. I have 2 weeks left for review, this could be too much time/not enough time. Should I look through some of the Wiley Sims? or just stick with Becker and work through all 2200 hw again along with looking at the sims a 2nd time? Thanks for the advice in advance.

[Anonymous]

I think I'm pushing this exam back to 10/1. I feel like a weenie for doing this, but I am just overwhelmed with the material right now. I'm going back through the Becker review and I'm only at Chapter 5. Plus, I'm doing the Wiley MCQs and sims in conjunction with each section. Every day I find there are more things I need to go and LEARN (not just *review*) and it's got me in a panic.

My “grand plan” has just gone out the window, but I just don't think there is any way I can be ready in 13 days. Oh well; here goes another month of my life…

[lobrennan]

I'm going back through Becker a chapter a day and got through Chapter 5 today, and I'm testing on the 28th! I'm here to tell you it can be done, because if it can't I am in serious trouble.

Already pushed my test back 15 days.

FAR 8/2013 - Passed!
REG 11/2013 - Passed!
AUD 1/2014

[Anonymous]

Can you push it back to 8/31? 3 Extra days could help a lot, just saying.

[Anonymous]

This financial exam is going to be the death of me. Seriously the amount of information is insane. I'm going through the final review right now, but it just feels like my head is going to explode by the time I get to the test not this Thursday but next Thursday. It is definitely tough going through all 10 sections remembering every aspect. But giving it my best shot and hoping for the best.

[CPA2B_NJ]

@NYCaccountant

I'm using Becker 2012. I should be scoring in the low 80's by now, but I just can't seem to absorbe the necessary amount of information from each chapter to ace this exam.

FAR - 50, 78
BEC - 67, 72, 75
AUD - 72, 80
REG - 70, 85

To God be the glory! Forever, amen!

NJ License

[Anonymous]

Anyone know the best way to tackle F10? I've been going over all the other chapters since the end of June and my exam is on August 30. I've completely neglected it and I'm feeling a little overwhelmed at what to do with it. I know the first time I took FAR I only did like half the questions once (maybe that's why I got a 68). Any advice would be appreciated!

Exam is in 11 days and I'm feeling confident only about 70% of the material maybe. Going to be making sure I go over my weaknesses a lot as well as make sure the stuff I feel good on, I'm really really confident with.

[Author]

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