[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]

I'm studying accruals/deferrals now and having a really hard time with it 🙁 For example,

Regal Department Store sells gift certificates, redeemable for store merchandise, that expire one year after their issuance. Regal has the following information pertaining to its gift certificates sales and redemptions:

Unredeemed at 12/31/Y1 $ 75,000 Year 2 sales 250,000 Year 2 redemptions of prior

year sales 25,000 Year 2 redemptions of current year sales 175,000 Regal’s

experience indicates that 10% of gift certificates sold will not be redeemed. In its December 31, year 2 balance sheet, what amount should Regal report as unearned revenue?

a. $125,000

b. $112,500

c. $100,000

d. $ 50,000

The correct answer is D.

I think I'm mainly getting confused with setting up the t-accounts so I can correctly knock out all these sorts of questions. Can someone help? Please??

On another note, I've noticed on this thread that people are studying journal entries. Does anyone have a list they can share? TIA!

[thechapman]

@Esther – That question seems like it's worded kind of weirdly to me. Since only $25,000 of the $75,000 unredeemed gift certificates are redeemed in (what I assume) is year 2, the other $50,000 left on the table by the customers just becomes revenue at 12/31/Y2. I'm having to assume that the unredeemed $50,000 from year 1 becomes revenue (expire) at 12/31/Y2 because it doesn't tell you when that batch of certificates was sold. As for the Year 2 info, it looks like $75,000 of the $250,000 is unredeemed, so I'm not sure how you would get to $50,000. Maybe someone else can shed some light on that part..?

Passed - 2014

[Anonymous]

@thechapman

They say the 75,000 doesn't affect the calculation because 25,000 were redeemed and the other 50,000 would expire. The amount expected to be redeemed is 225,000 (net of the 10%). 175,000 was redeemed so unearned revenue is 50,000 (225,000-175,000).

I get stuck on all these sort of questions though so I'm looking for a good approach to tackle them.

[Anonymous]

Another question…

Regarding change in principle and change in estimate….can someone explain how depreciation changes are classified? Sometimes it says it's a change in principle inseparable from a change in estimate (and thus treated as an estimate) and other times it says that it's a change in principle so it's accounted for retroactively.

[Anonymous]

Actually, I think I was confusing depreciation and inventory methods. Scratch that! Bedtime for me…

[DandyDoge]

@Esther Haha, I was just studying this earlier today. I think I'm going to go back review changes in accounting changes before I head off to BEC-land.

FAR: TBD
BEC: TBD
AUD: TBD
REG: TBD

[EYNewHire]

For those that have Becker. On practice exam 1 tasks 5 and 6 were identical for me. Anyone else have this?

[ahugemistake]

Hi everyone, I am finally getting down to the wire in my review. I will be done with the CPA excel review course this week and will begin my final review process next week. Now I know a lot of advice is given here on this topic, but I am very confused on how to go about my review. Should I just begin drilling MCQs? How should I practice for the IFRS questions I keep hearing about?

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

[Anonymous]

@Esther Regarding depreciation changes.

A change in estimate inseparable from a change in principle is accounted for as a change in estimate (prospective application). An example is a change in method of depreciation. Hope that helps!

[Tootsie]

@EYNewHire, yep, they were the same. Did you use Becker for REG? You have a great score.

FAR - 76
AUD - 88!!! DONE!!!!!!!!
BEC - 76
REG - 77

never, never, never give up

[Anonymous]

@CPAby2015

Thanks 🙂

[EYNewHire]

@Tootsie Thanks. Yes, I used Becker for REG. While Gearty irks me to no end he did a good job on the tax stuff and Olinito was great as usual with the Business Law. Just do as many MCQs as you can to nail everything down.

[thechapman]

Taking FAR in a few hours….good luck to anyone else taking it today! This is my first section ever so I am terrified that I'm not prepared

Passed - 2014

[MrFirsala]

Hello,

Is anyone here using Becker and watching all of the lectures first, then going back to review and do MC chapter by chapter? This is the study plan I would like to follow but I am wondering if it worked for anyone else. I personally feel that I learn and comprehend much better learner when I read material myself and take my own notes, and I feel like I do not get much out of the lectures. However, I do not want to skip the lectures altogether.

Any advice or thoughts would be greatly appreciated! Thank you!

[golfball7773]

@ahugemistake – I just finished watching the videos in CPAexcel and now I am drilling MCQ from NINJA. I do this because CPAexcel does not offer study mode unless if you do it on your phone. I don't learn if I do 10 questions then see why I got 6 of them wrong. Plus, NINJA offers a fresh set of questions and it is very cheap.

FAR: 63, 55, 62
REG: 65, 77*
AUD: Fail, 64, 71
BEC: 72, 74, 81

*expired

[Author]

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