[jeff]

Free Study Planner, Notes, Audio, Flashcards: https://www.another71.com/cpa-exam-study-plan/

Free CPA Exam Survival Guide: https://www.another71.com/cpa-exam-survival-guide/

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

[Anonymous]

FARtogo2014 please can you explain what the performance indicator thing is all about.

[Gian]

what is the most frequent topic given in the FAR exam?

AUD - 69, 80
FAR - 71, rematch 01/19/2015
BEC - 01/12/15
REG - 02/23/15

If life knocks you down, try to land on your back, cause if you can look up, You can get up! No matter how bad it is or how bad it gets, I'M GOING TO MAKE IT.

[missjones513]

12 days and I feel unprepared. Just going to focus on reading notes and doing NINJA mcqs. *sigh* I really hope I get a 75. So over the CPA exam!

REG - 5/29/12 (64), 10/1/12 (74), 5/20/13 (75, expires 12/31/14)
FAR - 8/14/12 (64), 8/5/14 (75)
BEC - 11/19/12 (70), 2/25/13 (72), 11/21/13 (73), 1/21/14 (73), 8/30/14 (72), 11/24/14 (75)
AUD - 4/22/13 (65), 10/12/13 (79)

I'm done!!!

Ethics - Pass

[Anonymous]

Esther,

This question is the worst, it hurts my brain

[Anonymous]

Presso, the question is asking for revenue and neither of the answers are considered revenue for a NP. Revenue is derived from operations.

[Anonymous]

Lol anjana. Once I think I've nailed this stuff they throw me a curve ball.

[M.O.D.]

@ Esther

the 8% note requires 5 equal payments, thus it is a 5 year annuity at 8%

20000/3.992 = 5010/ year

However, it was sold at a discount. This means King paid less for it than the face value.

How much did King pay for the note?

The annuity payments of $5010 x 3.89 = 19489 (this is the 9% annuity factor)

So King is getting 20000-19489 = 511 discount which records as a contra-asset (to the note asset), which it amortizes as interest revenue.

D Note rec 20000

C…Cash 19489

C…Note discount 511

The 20,000 note we know requires 5 payments of 5010 = 25,050

the difference 25050-20000 = 5050 is the interest received

Add to it the discount amortized over the life of the note and the total is:

5050 + 511 = 5561

BA Mathematics, UC Berkeley
Certificates in CPA and EA preparation, College of San Mateo
CMA I 420, II 470
FAR 91, AUD Feb 2015 (Gleim self-study)

[Anonymous]

M.O.D.

What exactly does 20000/3.992 = 5010/year represent? I have to admit that I am not following these calculations even after reading the explanation. Wouldn't the annual payment be 5600?

[Anonymous]

Park Co. uses the equity method to account for its January 1, Year 1, purchase of Tun, Inc.'s common stock. On January 1, Year 1, the fair values of Jun's ElFO inventory and land exceeded their carrying amounts. How do these excesses of fair values over carrying amounts affect Park's reported equity in Tun's Year 1 earnings?

Inventory Excess/Land Excess

a. Decrease Decrease

b. Decrease No effect

c. Increase Increase

d. Increase No effect

The answer is B. Can someone explain why. I understand the land portion, but can someone explain why the inventory excess would mean a decrease in earnings.

[Anonymous]

CPA2014Dream

If the excess of FV over CV is attributable to the inventory, the amount is written off against the income (at the time the asset is sold).

[M.O.D.]

If you have to pay off 20,000 in 5 years in equal payments, including interest, you can use annuity payments to do so.

It is the same as if you have 5 years to accumulate 20,000, including compounded interest.

An annual annuity is determined by the annuity factor for the interest rate and the number of payments (years).

so 5010 (annuity payment) x 3.992 (annuity future value factor for 8% and 5 years given in the problem) = 20,000 (total amount needed)

I am not sure where you get 5600.

BA Mathematics, UC Berkeley
Certificates in CPA and EA preparation, College of San Mateo
CMA I 420, II 470
FAR 91, AUD Feb 2015 (Gleim self-study)

[Anonymous]

hey all,

where exactly does unrealized gain/losses from trading securities, realized gains/losses from AFS, appear on the income statement? I can't find exactly which line.. Would it be considered “non operating income – in Other revenues/gains or Other expenses/losses?

Also,

For REALIZED and UNREALIZED gains/losses on TS – do they hit the same account? For example year 1, there's an unrealized loss which hits i/s. Year 2 – realized gain due to selling – do they net? and if they do – where in the i/s?

so confused!

[Anonymous]

double post

[Anonymous]

unrealized gain/losses from trading securities – income statement (non-operating)

realized gains/losses from AFS – income statement (non-operating)

For REALIZED and UNREALIZED gains/losses on TS – no, they don't net

[Jspann225]

I have a quick question. I was looking over FAR in case I got a FAR question in my AUD exam. Under IFRS, I know that if an there is an error the error should be adjusted from the earliest period presented.

Ex. If a company but a fixed asset and expenses the asset instead of capitalizing the asset. The asset cost $10,000 and has a 10 year useful life. The error was found as the beginning of year 2. Would the adjusting journal entry be

(Debit) Fixed Asset 10,000

(Credit) Retained Earning 9,000

(Credit) Acc. Depreciation 1,000

or

(Debit) Fixed Asset 10,000

(Credit) Retained Earnings 10,000

FAR - 93 - 7/1/14
AUD - 94 - 7/25/14
REG - 92 - 8/30/14
BEC - 89 - 10/6/14

[Author]

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