[jeff]

Welcome to the Q3 2017 CPA Exam Study Group for FAR. 🙂

Introduce yourselves and let your fellow NINJAs know when you plan to take your FAR exam.

The Five Steps (NINJA Framework): https://www.another71.com/pass-the-cpa-exam/

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

[Sweetie1]

The income reported for the 3 months of the 3rd Qtr is being reported at $95,000.
But it includes a portion of the $60,000 from April. (Gains should be reported at the time they are earned. Therefore the entire $60,000 should have been reported in April.)
We need to take out the $20,000 of that gain being reported in the 3rd Qtr.

The $16,000 cumulative loss from change in inventory was recorded in the 3rd Qtr. (Cumulative adjustments of this time should be reported at the Beginning Retained Earnings-Not in the current income statement) So, we need to add that loss back.

The property taxes for the year being allocated to each quarter are correct. (It is a distractor).

So, the problem would look like:
$95,000 -NI on the books currently
– $20,000 -Remove the gain
+ $16,000 -Add the loss that needed to go to beginning RE
= $91,000 = Correct NI for the 3rd Qtr

[IwannabeaCPA2017]

@sweetie, Thanks that makes more sense. Ahh I see what I did wrong. I didnt realize the gain shouldn't be spread in 3 quarters. Thanks a lot! love how y'all can simplify things better than becker. Guess my brain wasn't working that late either at 2AM.

[justa75pls]

Good luck to anyone testing today!!

[Pacman71]

@CoachEmUp

I have been following the posts since about mid June, and have some questions for you if you don't mind me asking.
I am currently using Wiley as well, and I am currently rolling into Governmental Accounting. It seems that there is a discrepancy between the Wiley software coverage VS the Wiley paper study guide coverage. If you don't mind me asking, how did you supplement this, and how did you structure your studying accordingly?

As of now, I typically skim the chapter, go over the slideshow, take notes, and watch the video if I am having trouble with the material, or if I get WRECKED on the MPC questions.

Background: I graduated in May 2017, start my new job in public accounting late in July, and FAR is my first CPA Exam section. I currently work about 20 hours a week, and study for the rest of my “free” time. I sit for it on July 25th @ 8:00 AM MST.

Thank you in advance for your time and consideration!

[sara]

I just purchased the NINJA MCQ and notes. I have 3 weeks left for FAR, and have been watching the Roger videos. Should I continue with reading Roger textbook and doing his MCQ, or focus on the NINJA notes and MCQ? I haven't done any practice questions yet. I have a full three weeks because I'm not working. Any suggestions? I only have 3 weeks and want to us this time wisely. Thanks and good luck to those testing today and tomorrow!

[IwannabeaCPA2017]

Can someone please help me with Cash to Accrual. Im always adding or subtracting when its the opposite. I can round down to 2 answer but its always the other one. Very frustrating.

Ina Co. had the following beginning and ending balances in its prepaid expense and accrued liabilities accounts for the current year:

Prepaid Expenses Accrued Liabilities

Beginning balance $ 5,000 $ 8,000

Ending balance 10,000 20,000

Debits to operating expenses totaled $100,000. What amount did Ina pay for operating expenses during the current year?

I originally chose 107,000 because I thought the Ending prepaid went up by 5k that means cash were paid out. But under accrual we dont recognize now so we deduct? But is should have been added.. Im just confused.

[taxfreak]

I just took the exam this morning and MCQ were definitely more manageable than SIMS. SIMS were way more difficult (lots of information given) than the mock exams and I rushed through the last teslet. Just praying I get a 75 :(. I felt like Becker really prepared me for the MCQ but not SIMS.

[justa75pls]

@taxfreak That seems to be the consensus from Becker users, which I'll soon find out. I hope you're able to enjoy your long weekend!

[Wannafree]

@TxafReak how long it took for you to finish MCQ ? I assume it had lot of calculations type questions.I am curious to know more about SIM in context of time taken.Could u do the research questions ?

[BBHYX]

@taxfreak also wondering how your time allocation went and what % of calculation type MCQ you had vs concept. Were the sims at least on topics covered by becker? Just ridiculously long?

@Iwannabeacpa2017 you should try to solve it using T accounts to see if it's easier for you. Might make it easier for you, or might confuse you more. See: https://www.another71.com/cpa-exam-forum/topic/mcq-question-far/

[taxfreak]

@wannafree @anniewang

It took me like 1.5hr ish to finish the MCQ with me double checking some of the questions. I had roughly half calculations and half memorization based questions. Honestly, they weren't that hard as all of the questions asked were covered by Becker. Second testlet had more calc based qs'. I only had 1 research, relatively straightforward, and I was able to find the answer to it.

The SIMS were SO long. Had so many distracting information and SIMS got harder as each testlet went by. I would def allocate more time on SIMS if I were to retake it.

[abanhiqbal]

@taxfreak did you have to create many financial statements or one/none?

[setmefree]

does anyone know why plane 2 is excluded?

AICPA.930531FAR-P1-FA
On December 31, 2004, Dirk Corp. sold Smith Co. two airplanes and simultaneously leased them back. Additional information pertaining to the sale-leasebacks follows:
Plane #1 Plane #2
Sales price $600,000 $1,000,000
Carrying amount, 12/31/04 $100,000 $550,000
Remaining useful life, 12/31/04 10 years 35 years
Lease term 8 years 3 years
Annual lease payments $100,000 $200,000
In its December 31, 2004 balance sheet, what amount should Dirk report as deferred gain on these transactions?
$950,000
$500,000
$450,000
$0
You Answered Incorrectly.
This answer would defer both gains.
But the gain for plane #2 ($450,000) is recognized immediately because the leaseback part of the transaction is minor. Only when the leaseback is for substantially all of the remaining use of the property is the gain deferred, as is the case for plane #1.

[hopingtogetFAR]

Hi!

After stalking various questions in this forum for the past week, I'm deciding to join for support, inspiration, etc.
I have not taken any parts of the exam. I am sitting for FAR August 5th. I am using Becker. Just finished F1, and I'm happy with the pace I'm working through material. I'm studying full time, so I am confident I will finish all chapters with 1.5 weeks to review. If I discipline myself, I may have two weeks to study.

[Wannafree]

@hopingtogatherFAR welcome abode.

[Author]

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