[jeff]

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

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

[Stilgoin]

@mtaylo24 Thanks for the input. I will look into them. 😉

B | 62, 78
A | 73, 67, 79
R | 82
F | 59, 59, Waiting

Ethics | 93

"Success is not final, failure is not fatal: it is the courage to continue that counts."
~Winston Churchill

“In a world full of critics, be an encourager."

[Spartans92]

I totally agree @stilgoin, this time it so much harder to study! The stuff I learned quick last round is taking me forever, for instance, bond. But things that I totally didnt understand like DTA/DTL is so much easier this time. Guess Reg paid off 🙂

Best of luck to you all.. Mckan and mtaylo!

BEC- PASS

[mckan514w]

Thanks Spartans! Hang in there yourself- and your not alone last re-sit I found it “odd” that I completely struggled with topics that I found easy the first go round and had zero problems with a lot of the ones that I had a hard time with first time.

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

[cwlanders]

I will be taking FAR February 6th. It will be the second time I have taken it. I scored a 74 a month ago. I will also be taking REG on March 10th to hopefully finish these exams before the new test comes along. Good luck studying everyone!

BEC - 91 (2/29/16)
AUD- 74, 74

[mtaylo24]

Question 29. On January 1, Year 1, Boston Group issued $100,000 par value, 5% 5-year bonds when the market rate of interest was 8%. Interest is payable annually on December 31. The following present value information is available:

5%

Present value of $1 (n = 5) 0.78353
Present value of an ordinary annuity (n = 5) 4.32948

8%

Present value of $1 (n = 5) 0.68058
Present value of an ordinary annuity (n = 5) 3.99271

What amount is the value of net bonds payable at the end of Year 1?

A. $88,022
B. $90,064
C. $100,000
D. $110,638

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)

[Stilgoin]

The answer is B. In the spirit of full disclosure, I have done this before. Is this Gleim?

100,000 x .68058 = 68,058
100,000 x .05 = 5,000
5,000 x 3.99271 = 19,964

68,058 + 19,964 = 88,022

For end of year, add back amortization.

88,022 x .08 = 7,042
7042-5000= 2,042

88,022 + 2,042 = 90,064

1/1
Dr Cash 88,022
Dr Discount on B/P 11,978
Cr Bonds Payable 100,000

12/31
Dr Interest Expense 7,042
Cr Amortization of Discount 2,042
Cr Interest Payable/Cash 5,000

B | 62, 78
A | 73, 67, 79
R | 82
F | 59, 59, Waiting

Ethics | 93

"Success is not final, failure is not fatal: it is the courage to continue that counts."
~Winston Churchill

“In a world full of critics, be an encourager."

[mtaylo24]

^^^Correct! And it is Gleim 😎 I like your answer explanation better btw!

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)

[Stilgoin]

I’m trying to do those JEs. 🙄 lol

B | 62, 78
A | 73, 67, 79
R | 82
F | 59, 59, Waiting

Ethics | 93

"Success is not final, failure is not fatal: it is the courage to continue that counts."
~Winston Churchill

“In a world full of critics, be an encourager."

[GiniC]

Hi everyone! FAR is my last section, and the sheer amount of material is daunting! I've done well with Becker so far so I'm sticking with it. I do add to it by digging through my textbooks and looking things up online when the review materials gloss over details. I'm giving myself plenty of time to get through the material – I have to wait for a new NTS after my current one expires 12/30, but I'm thinking of testing in early March.

Here's hoping for good scores this round!

Gini

[Cjsr]

I get stilgoin's explanation. But the wording of the question would have thrown me off during an actual exam. In the JEs, I see the credit of $100,000 to account “Bonds payable,” but I see no debit later on that would create a “net” “Bonds payable”. So – this means I shouldn't think of this as a question about ledger accounts. OK, but I would spin my wheels on this or just immediately pick C. But in the real world, suppose my boss said, hey, if we paid that off now, how much should it be, I'd get it. Just frustrated trying to figure out what the question is. This could be the difference between another 74 and a 75.

BEC. 83. 9 Jan 2016
REG. 83. 30 Jan 2016
AUD. 92. 27 May 2016

Becker FastPass with in-class videos

[mtaylo24]

Need some opinions on how I'm progressing. I Read a chapter of the text first and then hit the mcq for that chapter, which takes me plenty of sessions. I try to do the chapter in order first, then I hit 20 question sessions until I hit 80%. It took me until 1 am to do this yesterday for the bonds chapters yikes! Does this sound like a solid starting gameplan? Also, at what point do I stop and go back for older chapters? In at 1467 questions w/ 50% average. So far I've done since last Thursday's score release:

Friday – Govt Accounting
Sat – Skip to write out JEs for entire text
Sunday – Business Combos
Monday – Pensions
Tuesday – Intangibles/Software/Franchises/R&D
Wednesday – Bonds/PV/Notes Payable
Today – NFP

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)

[GiniC]

Darn – they caught me two different ways on this one. First I missed “net” – so my first response was C – you always record the Bond Payable at face value. Then I latched on to “par” – if bonds are issued at par, there is no premium or discount – so nothing to amortize. Took me a while to recognize that they didn't mean “issued at par” by writing “$100,000 par value”. My textbook didn't use this phrasing…

Grrrr… I know the concepts, they always catch me with wording!!!

[GiniC]

@mtaylo24- Sounds like a really ambitious schedule – I couldn't cover that much so fast, it would all blur!

My learning style forces me to write things down to learn them thoroughly, so I follow parts of Jeff's plan – write out notes (I use cards I can carry around to quiz myself at work and while running errands). I also have to stop videos and dig into topics that were summarized. It takes longer to review, but I can usually get at least 70% of the MCQs correct on the first try.

[Cjsr]

“net bonds payable” equals “carrying amount”? Is this what we're saying?

BEC. 83. 9 Jan 2016
REG. 83. 30 Jan 2016
AUD. 92. 27 May 2016

Becker FastPass with in-class videos

[mtaylo24]

@GiniC 70s on your first run? One can only dream, but it does seem like you put in mad work up front.

Here is the official answer explanation:

Answer (B) is correct.
On January 1, Year 1, the bonds were issued at $88,022 [($5,000 annuity payment × 3.99271 present value of an 8% annuity) + ($100,000 bond repayment × .68058 present value of $1 at 8%)], which is at an $11,978 discount ($100,000 – $88,022). The interest expense in the first year is $7,042 ($88,022 × 8%), and the coupon payment is $5,000. This means $2,042 ($7,042 – $5,000) of the value of the discount is amortized in Year 1. Therefore, the value of the net bonds payable at the end of Year 1 is $90,064 ($88,022 + $2,042).

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)

[Author]

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