[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

[hopingtogetFAR]

Can anyone help me understand the numbers they calculated in Becker?

The question is as follows: On December 31, Year 2, Fillmore issued $5,000 six percent coupon bonds at an issuance of 98 dollars. Later the same day, Stein acquired all the 5,000 outstanding bonds for a total price of $4,950,000.

Their solution for the borrower records the following:
Dr. Cash 4,900,000
Dr. Disc 100,000
Cr. B/P 5,000,000

The lender records the following:
Dr. Investment 4,950,000
Cr. Cash 4,950,000

There's more to the question, but I'm just trying to understand the 1st entry.

[frankrsa]

@HopingtoforgetFAR
I think the question may have stated: Fillmore issued 5000 six percent bonds at an issuance of 98? Usually bonds have a value of $1000, so if you issue 5000 of them, that is a total value of $5,000,000. Then, if you issued them at 98, you're issuing them at a discount of 98%. So, the $5,000,000 at 98% would be 4,900,000. You accrue for the discount of 100,000 and credit the bond payable at the total value of 5,000,000.

Hope this helps

[francker]

Sounds about right doing bonds now and if that's all they gave you then i would agree with @Frankra

[hopingtogetFAR]

@frankrsa Yes, that makes sense. The first facts statements says 5000 and the other facts pop up screen says $5000. I guess it's an error.

[francker]

sounds like becker error

[DeterminedCPAer]

@cr7cpa ya I don't know 100% but I'd capitalize it if the fixed asset has future useful purposes.

[DeterminedCPAer]

@frankrsa

Stein paying 4.95m instead of $4.9m sounds like Stein had 50k in fees. Wouldn't those be expensed? I don't know why stein would capitalize them under the investment. Or am I forgetting and these fees can be capitalized.

[frankrsa]

@DeterminedCPAer

Maybe the value of the bonds changed throughout the day, so when Stein purchased them, they were valued higher?

[Accountingbeans]

3 weeks till FAR and I'm officially in panic review mode. Already having restless nights because my brain is racing thinking about the material and everything that I have left to do. At this point, focusing on other stuff is so difficult.

Does anyone else feel like this during review mode? Where all they want to do and can think about is studying? I obviously still take some breaks for enjoyment in life but I have to force myself to. I don't even want to celebrate my upcoming birthday because I'll feel guilty..

Newbie
BEC- August 31

[jwalk]

@Accountingbeans I have exactly 2 weeks and 6 days until FAR exam. I am in panic mode too so you aren't alone. I am going back through and doing a progress test for a couple sections and hitting hard modules I have forgotten or didn't do all too well on. It is entirely overwhelming and now that I see some things I am questioning if they are even likely to be tested. I am also asking myself if I am getting the concepts. I think we have plenty of time left to review. Amazing what one day can do, I feel better after a good day of review yesterday.

What is your approach to review? And have you done a mock exam? Doing my first saturday. You got this!

[Accountingbeans]

@jwalk Good to see someone in the same boat! Agreed, one day of studying makes a huge difference. My current approach is to reread my notes along with the textbook for each chapter, do 33 MCQ progress questions for that chapter, then all the SIMs for that chapter. Then I move onto the next chapter. Each chapter takes me roughly 2 days to do (I work part time so some days I don't get as much done). I'm basically doing this as a once-through, preliminary review just to see all the info again and familiarize myself, despite not 100% nailing down all the info from each chapter. Not gonna lie, I'm struggling pretty hard on the progress tests and SIMs but by the time I get through the SIMs for that chapter, I feel a little better. Since I've already been reviewing for a bit, I should finish this process with ~2 weeks or a little less to go until exam day. With those last 2 weeks I'm just going to do a BUNCH of MCQ, review my notes 1-2 more times, and take the 2 practice exams.

My biggest question right now is whether or not to get NINJA MCQ. I hate that I can't see the Becker progress test scores until the end, makes it more difficult to learn IMO and not sure if I'm getting a good distribution of topics.

Newbie
BEC- August 31

[Accountingbeans]

@jwalk I'm not reading the textbook closely either, mainly just underlined points and written notes and skimming examples. Main purpose is to make sure I'm not missing any key details in my notes, plus just to re-see the topics laid out in an organized way so that I can somewhat categorize things in my head. I originally was only looking at my notes and not the book, then during a progress test would be like “wait wtf this is a topic in the chapter?” Lol.

Newbie
BEC- August 31

[DeterminedCPAer]

@Accountingbeans

I feel the same way. I have 3 weeks and 2 days before my exam. I'm 2 days behind my review schedule and all I can think about is stuff that I feel I have forgotten. Freaked out Tuesday as I started reviewing Becker 4 because I forgot the partial goodwill meathod and some other details of acquisition method and consolidations.

[jwalk]

@Accountingbeans sounds a lot like what I am doing. I haven't re-done SIMS yet. I am thinking after my mock exam I will know areas I need to spend the majority of my time on and save those SIMS/MCQ that I don't struggle with for last. I feel you on the progress tests. I feel like I do really bad to begin but after a quick refresher, I do better. I was in the same boat about purchasing MCQ from NINJA. I got the notes and really like those. They are nice to read during downtime and when I am tired at the end of the day because they are so simple and informative. I dislike not seeing my score until the end, but I think in long run it will help. Puts pressure on similar to real exam as we won't get that confidence building green highlight 🙁 🙂 I have read the phrase about the review being a deep, deep ocean, but to remember the exam is still the ocean but only 2 inches deep.

[Accountingbeans]

@determinedCPAer Man I didn't even remember what the terms “partial goodwill” and “acquisition method” applied to up until like 2 days ago. I truly feel like whenever I get to review I'm almost starting from scratch, MAYBE retaining like 25% of the info

Newbie
BEC- August 31

[Author]

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