[jeff]

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

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

[Holly]

Yeah, I think those dates filled fast. I'm wondering how scheduling next quarter will be once reg and bec opens up 3/11. You probably won't need to worry about that.

BEC - 79
REG - 85
AUD - 5/27/16

[mckan514w]

Oh Lord let's pray not- I am not sure I can study for this thing a fourth time… my brain is already fried and the thought of having to decide about taking this in q2 with the extra long score release or waiting until q3 is absolutely freaking me out not to mention the fear of starting to lose credits by not being able to test in both quarters if need be. Its as simple as I MUST PASS.

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

[Mscfisher]

My sentiments EXACTLY. This is a MUST PASS. I'm scrabbling to find a march 10 date. One decided to test in dc if i have to and just go to work late. Right now I'm scheduled for 3/3

[mckan514w]

I'm in DC mscfisher- and when I looked yesterday there was NOTHING in a 25 mile radius of me… I'm going to keep checking each day though…

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

[Holly]

Are rescheduling fees based on 30 business days or just 30 days?

BEC - 79
REG - 85
AUD - 5/27/16

[mckan514w]

Good question but if I had to guess 30 days period…. I mean we are talking extra fees and everything why split hairs 🙂

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

[mtaylo24]

We only have the 1st and 2nd open here in Richmond, VA. 8:30 & 12:30 on both days.

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)

[Anthony]

Bake Co.'s trial balance included the following at December 31, 20X1:

Accounts payable $ 80,000
Bonds payable, due 20X2 300,000
Discount on bonds payable 15,000
Deferred income tax liability 25,000

The deferred income tax liability is not related to an asset for financial accounting purposes and is expected to reverse in 20X2. What amount should be included in the current liability section of Bake's December 31, 20X1, balance sheet (statement of financial position)?

Answer: $390,000

Did this question not get updated on Ninja mcq? I thought all DTL/DTA are now classified as non-current.

[mo3athn]

Guys any help on pension part I am here, Master in it 😂

[greenolive]

Thank you @HRSexton!! That makes sense.

[r_f_94]

How would the amortization of a bond work when at issued at a premium as well as having bond issuance costs incurred under the effective interest method? I am just unsure how to figure out how much amortization would be allocated to each the premium and bond issuance costs.

[mckan514w]

@r_f_94- if I am not mistaken they just serve to reduce your premium / discount accounts. So for example you issued a 1,00 bond at 102 and incurred 5 in issuance cost your journal entry would be:
DR Bonds Payable 1000
DR Premium on Bond 15
CR Cash 1,015

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

[Sticky Nicky]

bic is amortized using straight line over the length of the bond term uniformly. Amortization of premium is diff calculation. If you multiply the face value of the bond by the stated rate that would be the cash payments. Then you take the carrying value multiplied by the yield to get the total interest expense. The diff between the two is the amortization for the period. Amortization decreases over time regardless of whether the bond was issued at a discount or premium. Hope im right.

[Sticky Nicky]

mckan i believe you are incorrect. BIC gets capitalized.

[mckan514w]

@Sticky Nicky had to look it up but this is from Gleim notes???????

Debt Issue cost are reported as a direct deduction from the face amount of the debt. Subsequent to their initial recognition debt issue cost are amortized over the life of the bond.

Effective Interest method is theoretically the best way to amortize the cost- taking it as a direct deduction against any premium or discount but Straight Line Depreciation may be applied if not materially different.

Debt issue cost include printing cost, underwriting cost, attorney fees, promotion cost, prospectus cost

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

[Author]

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