[jeff]

Welcome to the Q2 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

[Just3Letters]

Patel,

I would say the Becker Sims didn't prepare me at all for the test sims. I'm not trying to scare you or anything. I honestly thought the test sims were tougher, but only a little bit. Truthfully. Don't be too nervous. Just be prepared. The only thing I got from the Sims is to understand the format of the questions and how to do the research question which I answered quickly. That's super important.

But as for understanding the content of the Sims, just really know your journal entries and time management is absolutely critical.

The point of the sims is to be able to interpret a bunch of information and figure out how to use it. We can all do accounting at this point. But with the sims – you have to have time to interpret the information to get to the accounting part. So make sure you have time to think once you get to the sims. Don't think “I have time to do some Journal entries”.

Think “I have time to understand some information, put it together, and do journal entries or whatever else with that information”

Long story short, I thought the intense MC I did was the best preparation for the Sims.

Good luck studying this weekend everyone!

FAR- 81
REG- 81
BEC- Aug 22, 2016
AUD- TBD

[JT]

Good luck with ur results @just3letters.

Mind me asking, how many mcq's did u do and how comfortable did u feel with ur performance today? Im trying to get a gauge for where im at/where i want to be before my exam.

REG-80-1X
BEC-80-1X
FAR-73-1X
FAR-75-2X
AUD-September 2016

[KJ]

Good to hear you did well just3, I'm sure you nailed it!! Good luck.

FAR - August 2016
AUD - September 2016
REG - October 2016
BEC - November 2016

Remember: "Everything should be made as simple as possible, but not simpler." - Albert Einstein

[SONA]

Just3letters………….

Well done.

[SONA]

Kanwal78

Did you figure out the “net bonds payable” answer?

[lolo]

@Just3Letters, Good to hear. I am sure you did well, you can ace all others easily! wish you the best of luck mate …

My Nick name is sunshine, but the fact is I have not been in touch with it since I started this CPA exam! IT HURTS

AUD - ✔ Passed Becker self study!
BEC - ✔ Passed Becker self study!
FAR - ✔ Passed Becker self study!
REG - TBD

[aimhigher]

Does anyone know how to approach calculating Quarterly EPS?

I know the calculation for the year end, but what would be different if they were to ask a question on doing it for the end of the 1st Quarter?

Thanks

2016 - FAR, BEC, REG, AUD
Becker & Ninja Audio

[MaLoTu]

SONA and Kanwal – Ugh, I have been trying every combo of those numbers and cannot figure out how they got b. We know they sold it at a discount so that automatically eliminated c and d.

The closest I get is $89705 … Face value (100k) * PV annuity 8% (.68058) = 68058
Then add the payment … 5000 (100k*.05) * PV of 1$ at 5% (4.32948) = 21647 << This is my best guess and is plausible if they round up, but it is pretty clear that is not the case.

Add the 2 together to get the total liability for the year. You have to use the discount of the total value at market rate, but the payment will always be paid at stated rate. The way they make up for the difference in the market interest rate is by changing the purchase price of the overall bond.

[SONA]

Yes, i also tried the combination but not coming to the answer yet.

These becker sims are driving me crazy. Any suggestions…. trying to do NINJA sims and come back to becker sims.

[JT]

What's the question?

REG-80-1X
BEC-80-1X
FAR-73-1X
FAR-75-2X
AUD-September 2016

[MaLoTu]

Dab, it is on page 38 posted by kanwal… I'm on my phone and walking so I can't do to much!! Lol.

[SONA]

9. On January 1, year 1, Boston Group issued $100,000 par value, 5% five-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?

$88,022
$90,064
$100,000
$110,638

[GenericName]

Carrying amount of 88,022 x .08 = 7042 interest expense
Face amount of 100,000 x .05 = 5000 cash paid
7042 – 5000 = 2042 discount amortized
Carrying amount at beginning of year of 88,022 + 2042 discount amortization = 90,064 carrying amount at the end of year 1

[MaLoTu]

How did you get that carrying amount?

[SONA]

The following information pertains to Superstar Music's operating segments for the year ended December 31.

Axl
Bruce
Celine
Diddy
Elvis
Total
External Sales
10,000
0
15,000
10,000
70,000
105,000
Intersegment Sales
5,000
15,000
0
10,000
30,000
60,000
Net Income (Loss)
(9,000)
0
5,000
3,000
50,000
49,000
Assets
5,000
12,000
5,000
5,000
60,000
87,000

Based solely, on this information, indicate which of the segments are considered to be reportable segments:

Use check boxes to indicate correct answers.

I could not understand the 75% sufficiency test.
Its from becker F-1 sims no. 6

[Author]

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