[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

[jonm857]

Alright that helps. Thanks everybody.

B - 81
A - 87
R - 73
F - July 5th

[MaLoTu]

Titleist – $500 to RE is to recognize a loss, right? I cannot remember that rule. There are no gains on TS, that I remember.

[Titleistg0lfer]

Yes that is right MaLoTu. If you issued above, I believe you would have a Debit to APIC and a Credit to APIC.

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!!!!!

[jonm857]

Alright I left out a journal entry that should have been included and it definitely clears things up now. There was a re-issue ABOVE cosst entry between the buy-back and the re-issue BELOW cost that I left out because I thought it was a separate example. However, that journal entry flows into the “re-issue below cost” entry and it all makes sense now.

Here is the entry I left out, occurring right after the buy-back:

Re-issue ABOVE cost
100 shares repurchased for $20 were resold for $22.

Cash (100 x $22) – – – 2,200
T/S (100 x $20) – – – – – – – – – – -2,000
APIC – T/S – – – – – – – – – – – – – – – -200

That 200 is the amount that can be reduced in the re-issue below cost entry.

Sorry if this caused any confusion.

B - 81
A - 87
R - 73
F - July 5th

[MaLoTu]

^ Thanks!

I am in my final review phase and I am trying to stay positive! This exam is just so much information.

[lolo]

Hi guys, am I the only one who feels that chapter 6 taxes section way too complicated, this chapter makes me feel like I need to scream out loud! I am just trying to figure this ambiguity!!!!!!! Any thoughts??

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

[Titleistg0lfer]

What in Chapter 6 is throwing you for a loop? You can always post questions in here and others are usually always willing to help.

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!!!!!

[MaLoTu]

I actually don't feel like income taxes are extremely hard … However there are some weird issues that come up that don't make sense, you are relying on speculation a lot in income taxes. Just try going through it twice and see what sticks. If you have a example question I am more than glad to try to help you work through it … not that I am perfect on it! lol.

[lolo]

@Titleistg0lfer & @MaLoTu, thank you very much!

I actually do have 2 questions I am going to post them now, it takes some mins to write them down!

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

[MaLoTu]

This is from F2 and I have never seen this concept before … any help?

In its financial statements, Hila Co. discloses supplemental information on the effects of changing prices. Hila computed the increase in current cost of inventory as follows:

Increase in current cost (nominal dollars) $ 15,000

Increase in current cost (constant dollars) 12,000

What amount should Hila disclose as the inflation component of the increase in current cost of inventories?

a. $27,000
b. $12,000
c. $15,000
d. $3,000

[lolo]

@MaLoTu, is it 3,000$? 15-12=3 coz constant means without inflation but nominal means with the effect of inflation!

My question is in here: https://imgur.com/30wU7Xu

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

[lolo]

.

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

[MaLoTu]

@ sunshine … I am not sure, I am doing a 100 question progress test, but I will let you know when I am done.

[MaLoTu]

@sunshine – it was 3000 … that was deceptively easy, lol.

[MaLoTu]

I foolishly always get this one wrong, but there is hardly a distinction between a and d in my mind … Why does revenues or expenses being first matter? d is the right answer, btw.

The matching principle:
a. Matches revenues against expenses in the same accounting period.
b. Matches expenses and losses against revenues and gains in the same accounting period.
c. Matches revenues and gains against expenses and losses in the same accounting period.
d. Matches expenses against revenues in the same accounting period.

[Author]

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