[jeff]

Welcome to the Q1 2017 CPA Exam Study Group for FAR. 🙂

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

[cdn]

Just did Becker GOV and NFP SIMs – gosh there are so brutal!!!

[Namstut]

I did them yesterday and honestly, I can't even remember what they look like!

Working Bonds Payable Becker SIMs. I think this is my most hated topic!

AUD 7/6/16 Passed
BEC 9/3/16
FAR TBD
REG TBD

[cdn]

I get so scary now. Test Tuesday March 7 and my head is spinning around between all topics. Need to calm down and focus …

[norseman88]

Today has been bad for me… Can't seem to find an effective study method. Just so much material and so little time.

[Mscfisher]

@norseman there is never enough time. I'm Just reviewing major topics at this point. Feeling really down but trying to still push.

[Cruzer]

I think we all feel overwhelmed, I know I do. So much to cover and how the hell to remember it all. I am starting to really just listen to Bob on the PLUS videos. He goes over and over and over the topic like as if you don't understand it first time through. Fingers crossed for us all this week as we head into the last exams before the AICPA rolls out the new version!

[cdn]

@Cruzer – I really love Bob videos. Kind of stick to my head like glue lol nice plain language. I may just do quick check up with those videos.

[Namstut]

I think all of us are so lost at this point. Soooo much material to cover! Every time I open a new SIM I find yet another thing that I don't know! I think I will just hit MCQs Monday and Tuesday night snd binge watch TV after work on Wednesday until I start drooling! 😝

AUD 7/6/16 Passed
BEC 9/3/16
FAR TBD
REG TBD

[norseman88]

I'm just praying for ordinary sims on the damn exam, the sims will determine my pass or fail. I want nothing to do with a retake in Q2. Having to wait so long for the score. On top of that the stress of not knowing if board will extend my credit that expires in Aug, if I failed. Need to hand FAR the L

[norseman88]

I answered D. Is the 75,000 borrowed amount not calculated in addition to the 94,000 because it's already included? Equation: 500,000 + 94,000 (includes 75k?) + 25,000 – 2,000.

Rice Co. was incorporated on January 1, 20X1, with $500,000 from the issuance of stock and borrowed funds of $75,000. During the first year of operations, net income was $25,000. On December 15, 20X1, Rice paid a $2,000 cash dividend. No additional activities affected owner's equity in 20X1. On December 31, 20X1, Rice's liabilities had increased to $94,000. In Rice's December 31, 20X1, balance sheet (statement of financial position), total assets should be reported at:

A. $598,000.

B.$600,000.

C.$617,000. (Correct)

D.$692,000.

[Mscfisher]

@norseman. Yes. The borrowed funds were 75k initially and then increased to 94. So you just add the difference.

[mtaylo24]

What happened to the 104 price index mentioned above?

AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
REG - 55 (2/16) 69 (5/16) Retake(8/16)
BEC - 71(5/16) Retake (9/16)
FAR - (8/16)

[mckan514w]

@mtaylo- it was a liquidating layer- meaning that year 2 was less than year one- so the price index needs to be adjusted to the one above it- in essence “disappearing”- hold on and I will go to my notes to explain it better to you.

Officially freaked out- I did HORRIBLE yesterday on my MCQs- horrible its like I am getting dumber….

and they ask me why I drink...

FAR- 61-next time I'll ask for lube instead of a calculator
REG-75- Never been so happy to see such a low grade
BEC- 8/11
AUD- 9/2

[mckan514w]

@Mtaylo- hope my notes make sense….

Liquidating layer- sometimes inventory price levels decrease. When this happens it is considered to be a liquidating layer- instead of adding a new layer you will need to adjust the prior year layer because it has lost value- To adjust prior year layer:
Subtract the prior years layer from the current year loss (difference between base years)
This becomes your “new layer” thus repeat all of the steps to calculate end value- new layer by price index for Previous year (NOT CURRENT YEAR) added to prior year layer at base. In essence it is like the “liquidating year” did not exist- forget that years index!

So in above question:
98-100=1.5
1.5 X 1.00=1.5= 98.5
98.5

(110-98.5) X 1.10 =12.65

(112-110 X 112) x 1.12= 2.24

and they ask me why I drink...

FAR- 61-next time I'll ask for lube instead of a calculator
REG-75- Never been so happy to see such a low grade
BEC- 8/11
AUD- 9/2

[GiniC]

@mtaylo24 and @mckan514w –

I think of it this way. Looking ONLY at the Base Year column, total inventory went down from Year 1 to Year 2. If inventory goes down, you sold everything you made/purchased in Year 2 PLUS part of your stock on hand at the beginning of the year.

Since Year 2 did not add any inventory, you don't have a “layer” of stuff from year 2 to show in your warehouse. However, you have to reduce the amount you had on hand at the beginning of year 2, since you sold some of it.

I tend to think in physical terms

[Author]

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