[Q3] FAR Study Group 2014 - Page 107

Viewing 15 replies - 1,591 through 1,605 (of 2,797 total)
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  • #599071
    IWPGirl
    Member

    @lannebrown: Becker picked July 1 because it's mid-year. There is another way to explain it. Look 1/3 down for TiffaNiffaNii on page 14.

    AUD - 90
    REG - 78
    BEC - 84
    FAR - 91 woo hoooo!!

    Becker and Ninja MCQ

    #599072
    Anonymous
    Inactive

    Yeah I see the question, I just don't understand what is the government-wide changes in net position. If it's statement of activities, then I guess $10000 isn't included because it's not an expense

    #599073
    Anonymous
    Inactive

    Some of the names of these companies are funny. Packers fans much?

    “Which of the following items would best enable Driver Co. to determine whether the fair value of its investment in Favre Corp. is properly stated in the balance sheet?”

    #599074
    Anonymous
    Inactive

    A company enters into a 3 year operating lease agreement effective 1/1/x1. The amounts due on the first day of each year are $25,000 x1, 30,000 x2, and 35,000 x3. What amount, if any, is the related liability on the first day of x2?

    Answer: 5,000

    me: confused

    #599075
    lannebrown
    Participant

    @IWPGirl thank you! Makes sense now!

    AUD - 72,85 expires 12/31/15 yikes
    FAR - 72,68,76!!!!
    REG - 72, NOV 2015
    BEC - 67,66,10/24/2015

    #599076
    Anonymous
    Inactive

    cpa8488,

    I think it's because the rent expense for each year should be total agreement 90000/3=30000 doesn't matter what the payment schedule is

    #599077
    lannebrown
    Participant

    So I am having trouble copying and pasting this question, so I will just try giving a brief synopsis:

    If you are trying to figure out interest expense on an accrued vs. cash basis and you have a given interest rate, but some loans are payable in 1 year and some are 6 mos and 9 mos. why would you still use the one year fraction for the 6 and 9 mo loans. My instinct is to say if the loan is 30,000 and the loan date is 2/1/year 2 and the maturity date is 7/31/yr 2 then:

    30000 x 12% x 6/6 but Becker does 30000 x 12% x 6/12. I don't understand because its not a 12 mo loan.

    Sorry I had a horrible professor for Intermediate so I am teaching this all to myself.

    AUD - 72,85 expires 12/31/15 yikes
    FAR - 72,68,76!!!!
    REG - 72, NOV 2015
    BEC - 67,66,10/24/2015

    #599078
    jstay
    Participant
    #599079
    jstay
    Participant

    cpa 8488 & anjanja, journal entry behind this is..?

    dr: lease expense 30

    cr: cash 25

    cr liability 5

    whats the liability called? lease payable?

    #599080
    Anonymous
    Inactive

    lannebrown

    Why do you use 6/6? You know it's = 1, right?

    #599081
    ahugemistake
    Participant

    30000 x 12% x 6/6 but Becker does 30000 x 12% x 6/12. I don't understand because its not a 12 mo loan.

    The interest rate is not based on the term of the loan. The interest is an annual figure based on 12 months. That is why you need to figure out what the interest would be if the loan was only for 6 months out of 12 months of the year. Thus multiplying it by 6/12 and getting 0.50 x 12% = 6%

    FAR - 78*
    AUD - 66, 79
    REG - 73, 76
    BEC - 79

    #599082
    lannebrown
    Participant

    @anjanja yes and I just figured it out. The 12% is based on a year not the 6 mos so you have to cut it in half. Grrr Im just making myself crazy, if I dont pass this time i will lose my mind. Thanks and sorry.

    AUD - 72,85 expires 12/31/15 yikes
    FAR - 72,68,76!!!!
    REG - 72, NOV 2015
    BEC - 67,66,10/24/2015

    #599083
    ahugemistake
    Participant

    Can someone explain to me why Wiley Testbank doesn't let you search for the entire ASC for a key term but only lets you use the Search Within feature? Is this how it is on the exam for SIMS?

    FAR - 78*
    AUD - 66, 79
    REG - 73, 76
    BEC - 79

    #599085
    Anonymous
    Inactive

    lannebrown,

    I am still having hard time with the way they use fractions. I remember when I was in school they used to send us to Gulag for using 6/12. Only 1/2 would be allowed

    #599086
    lannebrown
    Participant

    @ahugemistake its a glitch in the system, I believe it is a known issue. You can use the key word search on the actual exam.

    AUD - 72,85 expires 12/31/15 yikes
    FAR - 72,68,76!!!!
    REG - 72, NOV 2015
    BEC - 67,66,10/24/2015

Viewing 15 replies - 1,591 through 1,605 (of 2,797 total)
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