[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

[haseltonk]

I don't know if these terms are Becker specific or not, but on the governmental accounting I'm confused by the use of the “control” accounts (budgetary control, appropriations control, revenue control, etc). Does anyone know if this is a Becker specific term, because I don't find much when I google trying to find out more about the purpose of the accounts and I'm not satisfied with their lack of explanation of what their purpose is. Otherwise if anyone could try explaining it I would appreciate it.

Thanks

[Determined CPA]

excel monkey – that makes sense! thank you

A - 75
B - 78 God is good.
F - 77 Answered prayers.
R - 84! Done!!

Paperwork sent - waiting for license!!
Still on a cloud and in shock. Through God, all things will happen.

[Anonymous]

jinjuujii, you solved half of the problem by determining that they would use the equity method but since they only owned 10% throughout the year (January 2 through December 31) they would use 10% ownership in determining the portion of income to be reported in the investment of Tot. If they had owned 10% for the first half of the year and 30% for the second half of the year then the 10% would have been used for income from the first half and 30% for income from the second half.

[Anonymous]

Testing in two days. I am “half-ass” working today, mostly jumping online to knock out MCQ's here and there, and off tomorrow to study all day. Thankfully things are not too crazy around here yet and I have a very understanding boss. This is the first time I have put any considerable time and effort into passing a section and my nerves are at an all time high. I have never put this much effort into anything, college included. Trying to stay positive but I won't lie, this test scares the crap out of me. This section ain't no joke! End of rant…back to work/studying…

[SkilletCPA]

I'm right there with you CTM. I take mine Saturday afternoon and am off tomorrow to prep for the big dance.

BEC Pass
AUD Pass
REG Pass
FAR Pass

[Anonymous]

Saturday afternoon for me as well. Best of luck to us both. Hopefully we'll both be looking at passing scores on the 4th and you will be finished with this awful experience know as the CPA exam.

[rwilkin1]

Is anyone else having an extremely hard time understanding Ch 3? Ever since I got to the Becker equity homework, I am completely lost and I heard the acquisition info is even harder. Any advice on how to deal with this? I'm hoping the rest of the chapters aren't this hard… About to lose all hope and motivation!

(First time tester. Taking FAR end of Feb.)

[Anonymous]

When I have trouble with a section I go through the homework and make sure I understand why I am getting a particular question wrong. In Becker you can use the eBook tool at the top of the screen to review the section of the book that relates to that question for a better understanding of the topic. Just keep hammering away and you will get it. Some topics just take more time than others. The only way to insure failure is to give up so just don't give up!

[excel monkey]

Good luck this weekend CTM and Skillet.

@rwilkin1

I'll second CTM. Using the e-book related to a question I'm struggling with usually helps a lot. Additionally, maybe you could post some questions that you're struggling with. I know you said you're stuck on the equity method, but if you can provide a more specific example of what's tripping you up within the equity method maybe someone here can explain it in a way that helps clarify things for you.

FAR - 91
AUD - 88
BEC - 86
REG - 79

[rossk]

Dyna Corporation had cost of goods sold of $300,000 for the current year ended December 31 and an ending inventory balance of $50,000. The beginning balances in inventory and accounts payable were $20,000 and $16,000, respectively. Dyna finances 80 percent of its inventory purchases with trade accounts payable, incurs purchases ratably throughout the year, and consistently pays for its purchases 30 days after acquisition. What was the amount of cash paid on accounts payable during the year ended December 31?

Correct answer is 258000

Can someone please explain the solution to this question.

[Anonymous]

hi I am new and going to take far next month. Could anyone advice have you ever seen governmental accounting sim? I think I saw some where says Gov Acting will only show in MC. Is that correct?

And where do you get sims to practice? I am taking Roger CPA review now. Is this enough that I only study on roger?

Thanks very much.

[Anonymous]

@rossk…Wow! That's a beast. I'll do my best. First, you have to determine total purchases for the year using the numbers provided:

Beg Inv 20,000

Purchases = X

Goods Available = X

Less COGS (300,000)

End Inv 50,000

From that you can back into a purchases number of 330,000 (50,000+300,000=350,000; 350,000-20,000=330,000). So you end up with purchases of 330,000. Then you use that number to calculate accounts payable activity. You are given that 80% of all purchases are financed (i.e. go through AP) so you know that 264,000 is your AP purchases (330,000*80%). With that you can calculate the following:

Beg AP 16,000

AP purchases 264,000

AP w/o payments 280,000

You are told that AP purchases are made ratably over the year and they pay for purchases 30 day after acquisition so of the 264,000 total AP purchases for the year only 22,000 should be outstanding in AP at year end (264,000/12=22,000). In other words, only the last months AP purchases would be in AP at year end because all others would have been paid. With the ending AP number you can back into the cash paid on AP (280,000-22,000=258,000).

I hope that helps. It is REALLY hard to explain that through this forum.

[Anonymous]

binglu511, I have never used Roger so no help there. NINJA MCQ package has SIMS in it too. For the price you can't beat that package.

[Determined CPA]

Gordon, Ltd., a 100%-owned British subsidiary of a U.S. parent company, reports its financial statements in local currency, the British pound. A local newspaper published the following U.S. exchange rates to the British pound at year-end:

Current rate $1.50

Historical rate (acquisition) 1.70

Average rate 1.55

Inventory (FIFO) 1.60

Which currency rate should Gordon use to convert its income statement to U.S. dollars at year-end?

Answer is 1.70. Can someone please explain when each of these rates would be used?

A - 75
B - 78 God is good.
F - 77 Answered prayers.
R - 84! Done!!

Paperwork sent - waiting for license!!
Still on a cloud and in shock. Through God, all things will happen.

[Determined CPA]

On August 1 of the current year, Kern Company leased a machine to Day Company for a 6-year period requiring payments of $10,000 at the beginning of each year. The machine cost $48,000, which is the fair value at the lease date, and has an estimated life of eight years with no residual value. Kern’s implicit interest rate is 10% and present value factors are as follows:

•Present value of an annuity due of $1 at 10% for 6 periods: 4.791

•Present value of an annuity due of $1 at 10% for 8 periods: 5.868

Kern appropriately recorded the lease as a direct-financing lease. At the inception of the lease, the gross lease receivables account balance should be:

Answer is 60,000 – When one is recognizing a lease transaction as a capital lease for the lessor, one has an account for the gross receivable under the lease. This account keeps track, in undiscounted fashion, of the entire lease rental payments to be received by the lessor. Here the gross receivables balance at the beginning of the lease is all six payments of $10,000, or $60,000.

I picked 47,910….I thought the lease was recorded at the PV?

A - 75
B - 78 God is good.
F - 77 Answered prayers.
R - 84! Done!!

Paperwork sent - waiting for license!!
Still on a cloud and in shock. Through God, all things will happen.

[Author]

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