[jeff]

Welcome to the Q1 2016 CPA Exam Study Group for FAR.

Some BLITZ videos to help your exams: https://www.another71.com/ninja-blitz

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

[Kemi22]

Hi guys, I came across a question in my Ninja MQC which I had seem (or something similar) in Becker. In Becker they didn't subtract advertising because it was considered AP but in Ninja the advertising is subtracted. Is there anything I am missing here?

Garnett Co. shipped inventory on consignment to Hart Co. that originally cost $50,000. Hart paid $1,200 for advertising that was reimbursable from Garnett. At the end of the year, 40% of the inventory was sold for $32,000. The agreement stated that a commission of 10% will be provided to Hart for all sales. What amount should Garnett report as net income for the year?

A. $0

B. $7,600

C. $10,800

D. $12,000

2010:
BEC: 74, 71, 74, 75
AUD: 71, 74, 83
REG: 71, 76
FAR: (I quit) 34, 45

2015:
BEC: 79
AUD: 78
REG: 67, 76
FAR: 56 (trial run), 74, 74, 74, 80!
Thank God. Your prayers are always answered! Do not give up. Thank you St. Joseph Cupertino.

[marqzho]

The toughest part is Govt. accounting to me.

Roger has very good explanation about every JE (at least those he taught) and the concept behind each of them. You won't get lost with him and you will understand when to Dr/ Cr and when to plug. But the down side is I think his course doesn't go deep enough. So I would advice you to get a Wiley or Ninja MCQ for supplement.

REG 90
FAR 95
AUD 98
BEC 84

[marqzho]

kemi22

I am not in Becker course so I can't say what you are missing with becker course.

but in my Roger course, advertising is a subtract to get the ans B

REG 90
FAR 95
AUD 98
BEC 84

[Claudia408]

@marqzho – i have Wiley platinum but i couldn't stand the DRRRYYYYY lectures and boring book! i like Wiley MCQs and SIMs though. So I switched to Roger bc i like his lectures, it's more like a conversation than a lecture. I'll definitely buy Ninja MCQ too.

BEC - 75 (3x)
AUD - 78 (3x)
REG - 67, 66, Aug 1
FAR - 54, Sept 8

[536FrenchmenStreet]

Kemi:

Here's how I'd work that problem.

Cost of inventory = $50,000
x percent of inventory sold = 40%
Cost of inventory sold = 20,000

Sales = 32,000
– cost of inventory sold = 20,000
Net sales = 12,000

Net sales = 12,000
x percent commission = 10%
Commission due = $1,200
Netted against the reimbursable advertising @ $1,200 = 0

Is that the answer you got?

BEC: Fall 2016
AUD: Spring 2016
REG: Summer 2016
FAR: RETAKE

[536FrenchmenStreet]

Hey cortes, that's great! Congratulations.

BEC: Fall 2016
AUD: Spring 2016
REG: Summer 2016
FAR: RETAKE

[marqzho]

sales – cost of good sold = gross profit not net sale.

Commission should be based on 10% of $32000 sales instead of $12000 profit.

The consignee doesn't care how much your inventory cost, but how much sales they made.

Sales 32000
-COGS (20000)
=profit 12000
– ad (1200)
– commission(3200)
= 7600

REG 90
FAR 95
AUD 98
BEC 84

[Kemi22]

Thanks, marqzho and 536FrenchmenStreet. The answer in Ninja is B – $7,600, done just like marqzho did.

I guess I was looking for the question to explicitly say the reimbursable advertising expense was actually reimbursed at year end … although from the answer choices I should have known to assume it was.

2010:
BEC: 74, 71, 74, 75
AUD: 71, 74, 83
REG: 71, 76
FAR: (I quit) 34, 45

2015:
BEC: 79
AUD: 78
REG: 67, 76
FAR: 56 (trial run), 74, 74, 74, 80!
Thank God. Your prayers are always answered! Do not give up. Thank you St. Joseph Cupertino.

[536FrenchmenStreet]

herp derp. Yeah, I'm gonna pass FAR in ten days.

Thanks, marq and kemi.

BEC: Fall 2016
AUD: Spring 2016
REG: Summer 2016
FAR: RETAKE

[Claudia408]

about how many mcqs do you get through in one day for Far? I feel like I'm super slow and can only go through 60, maybe 90…. although I'm just starting out…

BEC - 75 (3x)
AUD - 78 (3x)
REG - 67, 66, Aug 1
FAR - 54, Sept 8

[marqzho]

my exam date is on Feb 17 and I am doing 30 a day 🙂

REG 90
FAR 95
AUD 98
BEC 84

[Kemi22]

@ Claudia408:

I had initially planned on doing about 150 of Ninja MCQ per day but I have cut it down to 90 just so I don't get extra crisp burnt out (I am already burnt out). However on weekends I hope to do more. My exam is in 3 weeks' time and I feel even less prepared now than I was for the previous times I attempted FAR. Things I used to know … I can't even remember anymore. *sigh*

2010:
BEC: 74, 71, 74, 75
AUD: 71, 74, 83
REG: 71, 76
FAR: (I quit) 34, 45

2015:
BEC: 79
AUD: 78
REG: 67, 76
FAR: 56 (trial run), 74, 74, 74, 80!
Thank God. Your prayers are always answered! Do not give up. Thank you St. Joseph Cupertino.

[MaLoTu]

Congrats, JSM and Cortes! Sorry if I missed anyone, I scrolled through looking but those were the only ones I seen.

I got a 70 … so back to it in April! Yay (not). I am working on BEC now

[536FrenchmenStreet]

Man, I freaking have CRS disease with these MCQs today.

BEC: Fall 2016
AUD: Spring 2016
REG: Summer 2016
FAR: RETAKE

[marqzho]

Please help!

The following information pertains to Hall Co.’s defined-benefit pension plan at December 31, 20X4:
Unfunded projected benefit obligation $25,000
Unrecognized prior service cost 12,000
Net periodic pension cost 8,000
Hall made no contributions to the pension plan during 20X4.
In its December 31, 20X4, statement of stockholders' equity, what amount should Hall report as excess of additional pension liability over unrecognized prior service cost?

Ans: $5000

Can someone please translate it into english lol

REG 90
FAR 95
AUD 98
BEC 84

[Author]

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