[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]

In case you're looking for a comprehensive list of JEs, check this out: https://www.principlesofaccounting.com/illustrative%20entries/entrieslist.htm

I plan to rewrite these over and over and over and over….

[Anonymous]

Good morning, I had a quick question on some JE's on the following scenario.

A company had equipment costing $20,000 with a 4yr life and no salvage value. The asset was mistakenly fully depreciated in year 2. For year 3, Correct the error and record the correct year 3 depreciation using straight line depreciation.

[thechapman]

@cpastudent1324 –

Year 1

Depreciation expense………………….5,000

………….Accumulated Depreciation………………..5,000

Year 2

Depreciation expense……………………15,000

………..Accumulated Depreciation………………..15,000

To correct the year 2 depreciation you would record the following entries

Accumulated Depreciation………………..15,000

……..Depreciation expense………………………………..15,000

Depreciation expense…………………………….5,000

……….Accumulated depreciation……………………………..5,000

Year 3

Depreciation expense……………………………5,000

………Accumulated depreciation…………………………..5,000

This leaves you with accumulated depreciation of 15,000 at the end of year 3, the correct amount

Passed - 2014

[EYNewHire]

[Anonymous]

@Chap – Good Luck!

[samdiegoCPA]

Anyone wanna do a Q&A tonight? Like we all do MCQ on our own, but then post questions that we need clarification and we can all help each other. I'll be here at 7pm PST if anyone wants to do this. Also, why am I excited about this? AICPA devils getting into my brain.

AUD: 84
REG: 84
BEC: 79
FAR: 83

[Anonymous]

@MrFirsala, I am currently using Becker too but I rarely listen to the lectures. However, I listen to it when I a topic is unfamiliar to me.

[samdiegoCPA]

Birk Co. purchased 30% of Sled Co.'s outstanding common stock on December 31, 20X1, for $200,000. On that date, Sled's stockholders' equity was $500,000, and the fair value of its identifiable net assets was $600,000. On December 31, 20X1, what amount of goodwill should Birk attribute to this acquisition?

A. $0

B. $20,000

C. $30,000

D. $50,000

AUD: 84
REG: 84
BEC: 79
FAR: 83

[golfball7773]

C?

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

*expired

[Anonymous]

@samdiegoCPA – Correct answer: B.

Goodwill = Purchase Price – FV of Assets Acquired

20,000 = 200,000 – (30% * 600K)

[samdiegoCPA]

Yep B. Maybe I am just overloaded, but I didn't know you recognized goodwill on a 30% ownership.

AUD: 84
REG: 84
BEC: 79
FAR: 83

[golfball7773]

Well, I just learned something while working 🙂

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

*expired

[EYNewHire]

You DON'T recognize goodwill. It isn't recorded on the books for the equity method under goodwill. It's just included in the investment. This doesn't mean there isn't goodwill however. The questions asks how much is attributed not recorded on the books.

[samdiegoCPA]

@EYNewHire Ok, so I was on the right track of thinking… just need to RTMFQ better. Thanks for that!

AUD: 84
REG: 84
BEC: 79
FAR: 83

[Anonymous]

Is there an AICPA release of sample SIMS for 2014, or only MCQ?

[Author]

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