[jeff]

FAR Resources:

Free FAR Notes & Audio – https://www.another71.com/cpa-exam-study-plan

FAR 10 Point Combo: https://www.another71.com/products-page/ten-point-combo

FAR Score Release: https://www.another71.com/cpa-exam-scores-results-release

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

[Study Monk]

pink48915 You are correct in thinking that all equity of the subsidiary including subsidiary retained earnings is eliminated for consolidation financial statement presentation purposes. You may need to calculate subsidiary retained earnings for the elimination entry as well using beg retained earnings + net income -dividends +/- any adjustments from changes in accounting principles and errors from prior periods. Foreign translation plugs to 🙂

I spoke to an ancient wise man who sent me on a mushroom induced journey through an ancient forest to find the key to passing the CPA exam. A talking spider monkey told me to throw the last of my drinking water in the dirt to find what I was looking for. So I followed his instructions and the following message appeared in the soil:

"Do 5000 multiple choice questions for each section"

[Study Monk]

pink48915 You are correct in thinking that all equity of the subsidiary including subsidiary retained earnings is eliminated for consolidation financial statement presentation purposes. You may need to calculate subsidiary retained earnings for the elimination entry as well using beg retained earnings + net income -dividends +/- any adjustments from changes in accounting principles and errors from prior periods. Foreign translation plugs to 🙂

I spoke to an ancient wise man who sent me on a mushroom induced journey through an ancient forest to find the key to passing the CPA exam. A talking spider monkey told me to throw the last of my drinking water in the dirt to find what I was looking for. So I followed his instructions and the following message appeared in the soil:

"Do 5000 multiple choice questions for each section"

[Jennifer241]

I have been in public accounting for 10+ years and I have never seen it classified as current asset.

A current asset is all of company's assets that can be used to pay off current liabilities, CIP cannot be used to pay off a current liability within the next operational cycle of 12 months.

The construction in progress is really just a label of the building that is not yet finished, it tells the reader of the financial statements that this building is being built, however it is not yet being used so we won't be depreciating any of it yet. It is a fixed asset, and will be depreciated once it is finished.

AUD - Jan 9,13 Pass
REG - Aug 30,13 Pass
BEC - Oct 26,13 Pass
FAR - Dec 4,13 Pass

Licensed CPA in the state of Oregon

[Jennifer241]

I have been in public accounting for 10+ years and I have never seen it classified as current asset.

A current asset is all of company's assets that can be used to pay off current liabilities, CIP cannot be used to pay off a current liability within the next operational cycle of 12 months.

The construction in progress is really just a label of the building that is not yet finished, it tells the reader of the financial statements that this building is being built, however it is not yet being used so we won't be depreciating any of it yet. It is a fixed asset, and will be depreciated once it is finished.

AUD - Jan 9,13 Pass
REG - Aug 30,13 Pass
BEC - Oct 26,13 Pass
FAR - Dec 4,13 Pass

Licensed CPA in the state of Oregon

[Anonymous]

Yea I got FAR on December 5th. Im working comprehensive progress tests up to a week before the exam and then switching to the practice final exams the week of the exam. A little test anxiety is setting in but I feel like I have prepared the best I can and if I have to retake I would approach the same way I did before. Good luck to everyone who is taking their before the end of the testing window.

[Anonymous]

Yea I got FAR on December 5th. Im working comprehensive progress tests up to a week before the exam and then switching to the practice final exams the week of the exam. A little test anxiety is setting in but I feel like I have prepared the best I can and if I have to retake I would approach the same way I did before. Good luck to everyone who is taking their before the end of the testing window.

[Nevergiveup2012]

Hi guys I encountered a problem that is confusing me for whatever reason. I feel that the question was not written well.

CPA-01285 A balance arising from the translation and remeasurement of a subsidiary's foreign currency financial statements is reported in the consolidated financial statement when the subsidiary's functional currency is the

Foreign currency Reporting currency

a. No No

b. No Yes

c. Yes No

d. Yes yes

Becker's answer is : b.

Shouldn't it be c? if the subsidiary's functional currency is already the reporting currency, then translation is not needed. So confused. Please help.

BEC - 86 (8/31/12)
AUD - 97 (11/18/12)
REG - 83 (5/12/13)
FAR - 91 (12/2/13)
Done!!!

[Nevergiveup2012]

Hi guys I encountered a problem that is confusing me for whatever reason. I feel that the question was not written well.

CPA-01285 A balance arising from the translation and remeasurement of a subsidiary's foreign currency financial statements is reported in the consolidated financial statement when the subsidiary's functional currency is the

Foreign currency Reporting currency

a. No No

b. No Yes

c. Yes No

d. Yes yes

Becker's answer is : b.

Shouldn't it be c? if the subsidiary's functional currency is already the reporting currency, then translation is not needed. So confused. Please help.

BEC - 86 (8/31/12)
AUD - 97 (11/18/12)
REG - 83 (5/12/13)
FAR - 91 (12/2/13)
Done!!!

[Study Monk]

I think I was wrong in thinking that “construction in progress” can be a long term asset. This is what Becker says:

“At interim balance sheet dates, the excess of either the construction in progress account or the advances account over the other is classified as a current asset or a current liability.”

It actually makes sense if you reflect on it.

Excess costs over billings = Accounts Receivable = current asset

Excess billings over costs= Unearned Revenue = current liability

Its also important to remember that construction companies have longer operating cycles than other companies so it is not necessarily 12 months. Inventory turnover is a big factor in determining operating cycles.

Excess costs over billings could be used to pay off current liabilities because when money comes in to recover those costs it will be available to spend. That fact is independent of whether or not you recognize the cash as revenue yet(completed contract/and percentage).

I spoke to an ancient wise man who sent me on a mushroom induced journey through an ancient forest to find the key to passing the CPA exam. A talking spider monkey told me to throw the last of my drinking water in the dirt to find what I was looking for. So I followed his instructions and the following message appeared in the soil:

"Do 5000 multiple choice questions for each section"

[Study Monk]

I think I was wrong in thinking that “construction in progress” can be a long term asset. This is what Becker says:

“At interim balance sheet dates, the excess of either the construction in progress account or the advances account over the other is classified as a current asset or a current liability.”

It actually makes sense if you reflect on it.

Excess costs over billings = Accounts Receivable = current asset

Excess billings over costs= Unearned Revenue = current liability

Its also important to remember that construction companies have longer operating cycles than other companies so it is not necessarily 12 months. Inventory turnover is a big factor in determining operating cycles.

Excess costs over billings could be used to pay off current liabilities because when money comes in to recover those costs it will be available to spend. That fact is independent of whether or not you recognize the cash as revenue yet(completed contract/and percentage).

I spoke to an ancient wise man who sent me on a mushroom induced journey through an ancient forest to find the key to passing the CPA exam. A talking spider monkey told me to throw the last of my drinking water in the dirt to find what I was looking for. So I followed his instructions and the following message appeared in the soil:

"Do 5000 multiple choice questions for each section"

[Study Monk]

double posted

I spoke to an ancient wise man who sent me on a mushroom induced journey through an ancient forest to find the key to passing the CPA exam. A talking spider monkey told me to throw the last of my drinking water in the dirt to find what I was looking for. So I followed his instructions and the following message appeared in the soil:

"Do 5000 multiple choice questions for each section"

[Study Monk]

double posted

I spoke to an ancient wise man who sent me on a mushroom induced journey through an ancient forest to find the key to passing the CPA exam. A talking spider monkey told me to throw the last of my drinking water in the dirt to find what I was looking for. So I followed his instructions and the following message appeared in the soil:

"Do 5000 multiple choice questions for each section"

[MC6824]

Can anyone help me with this problem:

Baker, Inc. reported the following stockholders' equity balances:

8% cumulative preferred stock, par value $100 per share; 10,000 shares issued and outstanding (liquidation value $107) $1,000,000

Common stock, par value $10 per share, 50,000 shares issued and outstanding 500,000

Additional paid-in capital 75,000

Retained earnings 450,000

Dividends are in arrears on the preferred stock for three years including the current year. What is book value per share of common stock?

The answer is 14.30$, and I understand everything except for the price on the dividends in arrears. Becker says it should be (10,000 x $8 x 3 years) = 240,000 and I'm not following where the 8$ is coming from. I'm following the entire methodology and what I'm supposed to do, otherwise. Maybe I'm just brain dead 🙂 Thanks in advance!

REG: 64, 76 - PASSED August 2012
AUD: 68, 71, 82 - PASSED May 2013
BEC: 76 - PASSED August 2013
FAR: 65, 61, 73, 72

[MC6824]

Can anyone help me with this problem:

Baker, Inc. reported the following stockholders' equity balances:

8% cumulative preferred stock, par value $100 per share; 10,000 shares issued and outstanding (liquidation value $107) $1,000,000

Common stock, par value $10 per share, 50,000 shares issued and outstanding 500,000

Additional paid-in capital 75,000

Retained earnings 450,000

Dividends are in arrears on the preferred stock for three years including the current year. What is book value per share of common stock?

The answer is 14.30$, and I understand everything except for the price on the dividends in arrears. Becker says it should be (10,000 x $8 x 3 years) = 240,000 and I'm not following where the 8$ is coming from. I'm following the entire methodology and what I'm supposed to do, otherwise. Maybe I'm just brain dead 🙂 Thanks in advance!

REG: 64, 76 - PASSED August 2012
AUD: 68, 71, 82 - PASSED May 2013
BEC: 76 - PASSED August 2013
FAR: 65, 61, 73, 72

[Anonymous]

hey MC6824!

$8 is $100 par value x 8%

[Author]

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