[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

[SONA]

I got CAR IN BIG all correct.

Those elimination entries are really making all my answers go wrong. 🙁

All confusing…. even if i know that all inter company transactions are eliminated but still that intercompany sales, Cogs and profit is all crazy.

But i need to move forward i will try to finish all F-4 and 50% of F-5.

Can't do sims and h.w., so left sims for next week for all chapters.

Any tips suggestions?

[SONA]

Have you guys tried solving AICPA question 2013?

[SONA]

As of December 1, year 2 a company obtained a $1,000,000 line of credit maturing in one year on which it has drawn $250,000, a $750,000 secured note due in five annual installments, and a $300,000 three-year balloon note. The company has no other liabilities. How should the company's debt be presented in its classified balance sheet on December 31, year 2 if no debt repayments were made in December?
Current liabilities of $1,000,000; long-term liabilities of $1,050,000.
Current liabilities of $500,000; long-term liabilities of $1,550,000.
Current liabilities of $400,000; long-term liabilities of $900,000.
Current liabilities of $500,000; long-term liabilities of $800,000.

The answer is C

How?

[Titleistg0lfer]

@SONA I believe the reason is because current liabilities are recognized on any item that needs to be paid in the next year. In the question it states that they drew on the $250,000 (Current) and the $750,000 is due in 5 installments (1 being next year which should be current) so that would make $750,000/5 = $150,000 current.

$250,000 + $150,000 = $400,000 Current Liabilities
($750,000 – $150,000) + $300,000 = $900,000 Non-Current Liabilities

This is my train of thought anyways.

REG: 84 (10/5/15)
AUD: 83 (11/23/15)
BEC: 77 (2/27/16) - The bubble sucks
FAR: 90 (7/20/16) - AND DONE FOREVER!!!!!

[patelhj1]

@SONA Im falling really behind also!!! 🙁 It was my little brothers B-day yesterday so got no studying done. I'm on F6 accounting for income taxes.

@MatLotu where are the JE to record investment in Becker? Can you reference me to page.

BEC 78 08/2015
REG 71 11/2015, RETAKE 83 01/2016
FAR 75! 5/2016
AUD ? 8/2016

Becker with Nonstop NINJA MCQ
Google most difficult professional exam

[patelhj1]

@SONA I'm having the same problem, I cant remember anything even from my review from past few days. It's a lot of material. I havn't been completing the SIMS I just been reading chapter and doing all the mcq. I plan on coming back to all the sims 2 days before and taking a practice exam the day before.

Hopefully with me doing the all the SIMS 2 days before they will be fresh enough in my head to pull from them on test day… or maybe ill just blank… Just gonna have to wait and find out

BEC 78 08/2015
REG 71 11/2015, RETAKE 83 01/2016
FAR 75! 5/2016
AUD ? 8/2016

Becker with Nonstop NINJA MCQ
Google most difficult professional exam

[SONA]

Hushhhh………. 🙁

Really feeling very demotivated.

Little things can't remember and it makes a huge difference. making most of my answer wrong.

Best suggestion. READ THE QUESTION -“CAREFULLY.”

[SONA]

@tigertg1……….. Thanks for the answer.

You are right.

[patelhj1]

@SONA ya I hate getting the question wrong cause I didn't use 1/2 the year or some stupid shit. Just hang in there.. from what everyone says the Becker questions are WAY MORE harder than the actual test questions…

BEC 78 08/2015
REG 71 11/2015, RETAKE 83 01/2016
FAR 75! 5/2016
AUD ? 8/2016

Becker with Nonstop NINJA MCQ
Google most difficult professional exam

[JT]

@MaLoTu

Im not sure if anyone answered your question about the non-monitoring vs monitoring.

My understanding is that non-monitoring means the govt has no liability and does not have to “monitor” what happens with the funds as it passes through them, thus going to the agency fund.

Monitoring means they will need to monitor what happens to it etc so it isn't an agency item.

If you use the word “monitor” interchangeable with “liability” then I think it should help a little.

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

[MaLoTu]

@Dab – thank you! No one else really knew or understood, lol. I was gathering that it had something to do with that. If it is Special Revenue then it has to fall within certain eligibility requirements and then the gov must monitor to make sure they are entitled to funds. Whereas agency, they can just be holding money for something, like a donor wants to give money to a family in the community who lost their house to fire., in this case they are like a middle man.

[msteezzz]

In Becker's book…. F7 page 10 and 11 showed a comparison of Cost Method vs Par Value method for Common Stock. How did they get the 75,000 retained earnings??? Anyone?

[Tuthegreat]

if there is not enough APIC to subtract..its usually taken against RE to balance the Journal Entry

[JT]

These questions has me stumped. I might be looking to closey at the details… Bare with me…

Question 1 River City has a defined contribution pension plan. How should River report the pension plan in its financial statements?

A. Amortize any transition asset over the estimated number of years of current employees' service.

B. Disclose in the notes to the financial statements the amount of the pension benefit obligation and the net position available for benefits.

C. Identify in the notes to financial statements the types of employees covered and the employer's and employees' obligations to contribute to the plan.

D. Accrue a liability for benefit earned but not paid to plan participants.

The answer is c.

Question 2 Note section disclosures in the financial statements for pensions do not require inclusion of which of the following?

A. The components of period pension costs

B. The amount of net prior service cost or credit in accumulated other comprehensive income

C. The company's best estimate of contributions expected to be paid into the plan in the next fiscal year

D. A detailed description of the plan, including employee groups covered

The answer is d.

Am I getting tripped up on this? Aren't they contradicting?
I mean both are defined contribution pension plans. The notes are included in the financial statements so both questions are referencing the same thing. Correct?

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

[JT]

@MaLoTu

Correct. If they are not monitoring it, then they must've been directed to do something with the fund by an outside source (ie donor). Thus, they have no liability to it/for it, thus it's agency. Atleast that's how I remember it.

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

[Author]

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