[jeff]

Post by Another71.

Free Study Planner, Notes, Audio, Flashcards: https://www.another71.com/cpa-exam-study-plan/

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

[iddyrashy]

Hi all.

How is FAR coming? I am using CPAexcel, is anyone using it? If yes how do you manage the studying session?

AUD 89 (07/06/14)
REG 83 (08/27/2015)
FAR 78 (04/27/2015)
BEC 75 (11/13/2015)

TEXAS 2016

[rapk314]

Time to get really serious, FAR on 01/05/14. Scored a 72 in late August. Using Becker and Ninja notes

BEC 76 (11/2014)
FAR 83 (01/2015)
AUD 86 (02/2015)
REG 86(04/2015)

[Satchman]

@yawampofoh1

The Answer is $125,000

@Gian is correct, however there is an error in the last entry. When you reissue TStock, you will credit PIC- CS and not PIC-TS. for the amount in excess of the par value, which will in this case will bring PIC-CS to $75,000 (which I believe is wrong)

PIC – CS = 100,000 – 25,000 + 50,000

= 125,000

[Future Ninja]

Anyone?

Zinc Co.'s adjusted trial balance on December 31, 20X1, includes the following account balances:

Common stock ($3 par) $600,000

Additional paid-in capital 800,000

Treasury stock (at cost) 50,000

Net unrealized loss on marketable equity

securities available-for-sale 20,000

Net unrealized loss on marketable

equity trading securities 15,000

Retained earnings appropriated

for uninsured earthquake losses 150,000

Retained earnings (unappropriated) 200,000

What amount should Zinc report as total stockholders' equity in its December 31, 20X1, balance sheet?

A.

$1,665,000

B.

$1,680,000

C.

$1,685,000

D.

$1,780,000

AUD - 79 (expired) retaking July 28,2016
FAR - 76 expiring July 31, 2016
BEC - 85
REG - 74,74,74,74,59,70,

[Satchman]

@Future Ninja

The answer is $1,680,000

Stockholder's Equity

= 600,000 + 800,000 + 150,000 + 200,000 – 20,000 – 50,000

= 1,750,000 – 70,000

= 1,680,000

Treasury Stock and Net unrealized loss on AFS are contra equity accounts. Loss on TS is already recognized in Income Statment (reflected in Retained Earnings)

By the way, I am scheduled for FAR jan 9, 2015.. This is my first exam – Cheers !!

[ewalk728]

Hey everyone! So I've been lurking in this community from time to time as I made my way through the FAR exam the first time. I took it in August this summer and probably took too much time to study as I studied from middle of June till the last day in August. I ended up getting a 63 and am now signed up to take the test again on the 12th of January.

First time around I used Roger CPA to study.

This time I'm using Roger CPA+Ninja Notes+MCQs plus I have the audio for long holiday car trips to see family.

Is it possible for me to pass? I'm still in school and just completed my first semester of MAcc and actually had two courses that helped a lot (International Accounting/Accounting Research&Writing). My goal is to study around 6-7 hours a day with 3 days off from new material but I'll probably use those to review MCQs and notes.

Good luck to everyone studying!

[SkilletCPA]

Spiro Corp. uses the sum-of-the-years'-digits method to depreciate equipment purchased in January 20X1 for $20,000. The estimated salvage value of the equipment is $2,000 and the estimated useful life is four years. What should Spiro report as the asset's carrying amount as of December 31, 20X3?

A.$1,800

B.$2,000

C.$3,800

D.$4,500

My incorrect response was A. The correct response is C. I suppose you have to add back the salvage value to calculate the carrying amount?

BEC Pass
AUD Pass
REG Pass
FAR Pass

[ShmeePA]

Correct. To calculate the yearly depreciation expense you back out the salvage value. When determining Carrying value you take total cost – AD.

BEC-84
FAR-86
AUD-87
REG-79

[Satchman]

@SkilletCPA – Residual Value is still part of carrying value always. $1800 is just the depreciable amount still left. The question asks for the Book Value and not the depreciation still left.

[ewalk728]

@skilletCPA

It would be (20,000-2000)x(1/10). This will give you the remaining amount to be depreciated over the next year. Add this to the 2,000 and it would be 2,000+1800=3800.

Also could do

18,000*(4/10), (3/10), 2/10) to find out how much has been depreciated so far: 7200+5400+3600= $16200 with a carrying amount of $3800.

The salvage value is used to help you calculate depreciation and shouldn't be taken out of the carrying value on the books.

[SkilletCPA]

Thank you ewalk728!!

BEC Pass
AUD Pass
REG Pass
FAR Pass

[Future Ninja]

@Satchman thanks. I forgot that unrealized loss of AFS is a contra equity account (OCI). this is my second stab at FAR. praying we will make it this time. Good luck to all of us. ^_^

AUD - 79 (expired) retaking July 28,2016
FAR - 76 expiring July 31, 2016
BEC - 85
REG - 74,74,74,74,59,70,

[Yaw]

is the formula for pension expense A or B?

A

Service cost+ Interest cost – Expected return on plan assets +/- Unexpected loss/gain

B

Service cost+ Interest cost – Actual return on plan assets +/- Unexpected loss/gain

Ninja notes has it as B. All along i thought it was A.

The calculation for expected return on plan assets and actual return on plan assets are different, so depending on which one you go with(i.e either A or B), you might be correct or wrong.

Anyone?

[Anonymous]

It is B.

[Satchman]

@yawampofoh1

You are right. It is A. We use expected return on plan assets to compute the Pension Expense for a period. Since, we might not likely have the actual value in hand at the time.

However, after the actual return on Plan Assets become known, we just smoothen out the gains/losses and record the difference in Accumulated Other Comprehensive Income (AOCI) – Gains/Losses. Subsequently you will use the minimum corridor method to amortize the gains/losses.

Even, in my wiley notes the formula for Pension Expense was B, I am guessing maybe that is the formula prescribed. However, in implementation always use formula A.

In addition, you include Amortization of PSC and G/L. I am not sure what you mean by Unexpected Gains/Losses there, I hope you are implying the amortizations of PSC and G/L.

Take Care and Good Luck

[Author]

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