[jeff]

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

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

[Cjsr]

For me, the linchpin of governmental accounting is the concept of encumbrance. You encumber funds in order to keep people from overspending their budgets, I.e. to make sure everyone knows that money is committed. Everything else makes sense around that.

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

Becker FastPass with in-class videos

[Spartans92]

Bingo!! 22800 is the answer. I think I got this part down 🙂 Thanks!

I hate DTL and DTA

BEC- PASS

[Tarheel83]

Hey ninjas! I am going to plan to participate in the Q1 forums this time around. I just got through taking FAR for the first time in Q4 and came up short with a 73, so I am going to retake it on Jan 7th. Then I am off to studying for REG for the first time, with an exam date on Feb 4, and then a retake on BEC scheduled for March 6 (which i failed with a 74 on my first attempt back around July/August).

So to say the least I am trying to get as many of these exams done in Q1 as possible. All the best to everyone studying for their exams in this window.

Also, @mtaylo24 I see that you have drafted a pdf of all the JE's that you plan to study for FAR. Would it be possible to get a copy of that document? I had planned to draft up a list of JE's myself this time around and put a little bit more focus on JE's.

[Stilgoin]

https://sites.google.com/site/farnotes/gas-34/journal-entries–fund-based-vs-government-wide

https://www.principlesofaccounting.com/illustrative%20entries/entrieslist.htm

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."

[jeff]

2017 Update Video:

2017 CPA Exam Update Summary

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

[Anonymous]

@stilgoin thanks, very helpful. Also, does anyone know if the exam asks research questions for GASB?

[Stilgoin]

I wondered about GASB research as well, but I only had access to FASB on the times I have tested for FAR, so I am assuming no. I did tell them in the survey at the end of one of my FAR exams that I thought it was unfair to be asked about GASB issues in the sims since we had no access to GASB. I’m sure they threw out all governmental sims after my complaint. (<<<insert snarky sarcasm and eyes rolling here)

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."

[Anonymous]

Here's a link to the annual report (that includes the govt financial statements) for the City of Boston:

https://www.cityofboston.gov/images_documents/FINAL%20CAFR%2012-29-15_PM2_Secure_tcm3-52761.pdf

[mtaylo24]

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)

[mtaylo24]

This one had me stumped, but I finally got it…

Question: 5 Main, a pharmaceutical company, leased office space from Ash. Main took possession and began to use the building on July 1, Year 1. Rent was due the first day of each month. Monthly lease payments escalated over the 5-year period of the lease as follows:

Period – Lease payment

7/1/Year 1 – 9/30/Year 1 – $0 – rent abatement during move-in, construction
10/1/Year 1 – 6/30/Year 2 – 17,500
7/1/Year 2 – 6/30/Year 3 – 19,000
7/1/Year 3 – 6/30/Year 4 – 20,500
7/1/Year 4 – 6/30/Year 5 – 23,000
7/1/Year 5 – 6/30/Year 6 – 24,500

What amount would Main show as deferred rent expense at December 31, Year 4?

A. $0
B. $26,850
C. $53,700
D. $71,550

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)

[Spartans92]

Need help with this question…
White Industries started their operations on January 1, Year 1 and recorded $400,000 in warranty expense during the year. Warranty expense was the only difference between the company's pretax financial income and its tax return income of $900,000. White will be required to pay these warranties at a rate of $100,000 per year beginning in Year 2. Although White fully expects to earn in excess of $100,000 in Year 2 and Year 3, the company believes it is more likely than not that it will incur a loss after Year 3. The enacted tax rate is 25% in current and future periods. What will White record as its income tax expense in Year 1?

a.
$125,000
b.
$225,000
c.
$100,000
d.
$175,000

Not really understanding where to start.. Thanks!

BEC- PASS

[Tarheel83]

@mtaylo24 Thanks for the link. I am definitely going to look over these JE's.

Also, on the deferred rent expense problem for lease payments, the answer is D, $71,550. Thanks for sharing.

[Anonymous]

Grove Township issued $50,000 of bond anticipation notes at face amount in the current year and placed the proceeds into its capital projects fund. All legal steps were taken to refinance the notes, but Grove was unable to consummate refinancing. In the capital projects fund, what account should be credited to record the $50,000 proceeds?

A. Other Financing Sources Control

B. Revenues Control

C. Deferred Revenues

D. Bond Anticipation Notes Payable

[Anonymous]

@Tarheel83 how did you arrive at answer D?

[mtaylo24]

I can't score an 80% on leases to save my life and have been stuck on this chapter for 3 days smh! Too damn tricky!

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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