[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

[KJ]

9. Frame Co. has an 8% note receivable dated June 30, year 1,
in the original amount of $150,000. Payments of $50,000 in
principal plus accrued interest are due annually on July 1, year
2, year 3, and year 4. In its June 30, year 2 balance sheet, what
amount should Frame report as a current asset for interest on
the note receivable?
a. $0
b. $4,000
c. $8,000
d. $12,000

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

[patelhj1]

@Kanwal

The balance on June 30th is 100,000 * .04 = 4,000 Correct?

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]

@Kanwal

The balance on June 30th is 100,000 * .04 = 4,000 Correct?

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

[MaLoTu]

Where did you get 4%, Patel?

I thought it might be 8000 … 150k*.08*24/36 because the first year hadn't been paid and the next year is a current asset because a current asset is 1 year or less.

However, I have no idea! I really hate that I am so unsure.

[patelhj1]

Half the year rate of 8% the date is July.

I keep refreshing waiting for kanwal to respond I want to know the answer

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

[MaLoTu]

I edited and added to my post … the year end is June 30 and a year had passed since they acquired the NR … you could be right I am not sure! lol.

[KJ]

Sorry guys…Well, the answer is C, 8,000. Patel interest is paid annually so it will be 8%. It will be accrued interest for 12 months from June year 1 to June year 2. In the explanation they are using wrong dates, can you guys confirm if you guys agree or I am wrong.

Explanation:

Accrued interest receivable at 6/30/Y3 is interest
revenue which has been earned by 6/30/Y3, but has not yet
been received by that date. Interest was last received on
7/1/Y2; the accrued interest receivable includes interest
revenue earned from 7/1/Y2 through 6/30/Y3 (a full year).
The original balance of the note receivable was $150,000 but
the 7/1/Y2 principal payment of $50,000 reduced this balance
to $100,000. Therefore, the 6/30/Y3 interest receivable is
$8,000 ($100,000 × 8%).

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]

The answer is C because their balance sheet date is June , 30.

[JT]

To answer the question about the exam sims for cash flow, I can't disclose anything but honestly, anything and everything is fair game.

I would suggest that you have an ok/decent understanding about everything, and I mean everything!

It's impossible to be fully prepared for the sims but do the best you can. There are a lot of other candidates that are just as clueless as you.

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

[KJ]

Kemp Co. must determine the December 31, year 2
year-end accruals for advertising and rent expenses. A $500
advertising bill was received January 7, year 3, comprising
costs of $375 for advertisements in December year 2 issues,
and $125 for advertisements in January year 3 issues of the
newspaper.
A store lease, effective December 16, year 1, calls for
fixed rent of $1,200 per month, payable one month from the
effective date and monthly thereafter. In addition, rent equal
to 5% of net sales over $300,000 per calendar year is payable
on January 31 of the following year. Net sales for year 2 were
$550,000.
In its December 31, year 2 balance sheet, Kemp should
report accrued liabilities of
a. $12,875
b. $13,000
c. $13,100
d. $13,475

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

[JT]

Is it D?

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

[KJ]

Yes Dab correct!!

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

[KJ]

Dab when you did take your previous FAR exam? 73 is a killer man. I am sure you were very pissed, I would be for sure. Hope I can pass the first try but it does not seem like. I am just not feeling this!

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

[JT]

Confidence is key!

Im not sure I will pass my next attempt but I will try.

The only thing you can do is prepare your best and try your best.

I was pist when I saw my score. I had no one to blame but myself at the end of the day.

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

[JT]

Btw… I took FAR February this yr. I didn't pass so I stayed with FAR.

Hopefully We will both be done with it this quarter and will work on audit next cycle.

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

[Author]

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