[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]

haha glad I'm not the only one Claudia!

I'm not familiar with that. Must be with your program! Do you have a specific question though?

Basically get rid of inter-company sales and any extra gross profit you got by selling inventory you bought from inside the company to outsiders. Also, get rid of excess depreciation because you are depreciating from a higher base because you paid 200,000 for a machine when your consolidated friend had it on their books for 100,000. You should still be depreciating over the original 100,000

Make adjusting entries for those types of things and get rid of inter-company sales (in this case that would be 200,000 because you bought that machinery)

But yeah, any specific questions?

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

[Spartans92]

Anyone on NFP yet? This chapter is driving me nuts. I am so lost with all the types of expenses and classification. When a contribution has an appreciation how do I classify that? For example if there is an endowment fund (permanent) and the value increases is that an increase to permanent restricted net asset?
There was one question where market value decline and it said it goes to the temp. restricted to the extent of available resources then remaining losses reduces unrestricted.

BEC- PASS

[Spartans92]

Can anyone clarify why acquisition of property isn't investing activity in this scenario.

The Jackson Foundation, a not-for-profit organization, received contributions in Year 1 as follows:
Unrestricted cash contributions of $500,000.
Cash contributions of $200,000 to be restricted to acquisition of property.
Jackson's statement of cash flows in Year 1 should include which of the following amounts?

Operating Investing Financing
activities activities activities
a. $500,000 $200,000 $0
b. $700,000 $0 $0
c. $0 $500,000 $200,000
d. $500,000 $0 $200,000

Answer is D. But I thought acquisition should be Investing. Becker didnt really explained too well.

BEC- PASS

[Just3Letters]

Sorry Spartans, not on NFP yet (next week i think)

Refer to Operation CPA below for the actual correct answer 🙂

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

[Operation_CPA]

@Spartans92

When a cash contribution is restricted in nature it is classified as a financing activity. A normal contribution would generally be classified as operating, but because the contribution is restricted (key word) it falls under financing. (See page F9-50, Becker).

Investing for NFP usually relates to equipment, art, etc.

[Spartans92]

Thanks Operation! should totally refer back to the book for the answer LOL.

BEC- PASS

[cultur3]

I take FAR this Saturday. I hit the review phase and have a trending of 95%, but I still don't feel ready.

My problems are sales-back leases specifically, allowance for doubtful accounts when dealing with cash to accrual, and just minor things here and there.

I'm gunna do a random 100 questions for each of the 5 sections and some cpaexcel questions today/tomorrow. Dreading Saturday.

F 83 4/09/16
A 85 6/10/16
B 81 7/19/16

[Spartans92]

Good Luck Cultur3! I think you will do well with that trending score.

BEC- PASS

[mckan514w]

Wow awesome trending score Cultur3! Good luck! you should do great!

Ha ha ha Just3Letters I just did the same thing typing out a question on intracompany liabilities- I figured it all out myself typing out the journal entries and laughing at my stupidity– hmmm maybe this is starting to click a little bit

Sorry for a nonsensical post guys thought I had a question but I worked it out- happy Friday.

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

[Spartans92]

Yay its Friday!! Anyone going to see The Boss tonight?? Wait…we have a date with FAR, right? :):)

BEC- PASS

[mckan514w]

Ha ha ha Spartan– FAR IS my Boss these days!!!!

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

[Spartans92]

Nice one mckan ^^ guess Melissa McCarthy needs to step aside. Enjoy your weekend as well!

BEC- PASS

[Spartans92]

Hey guys sorry for asking again it seems like I am confusing myself.. But there was one question where it said donations received to be used for ongoing program services is considered unrestricted net asset. But then another says donation received to be retained for ongoing operations is permanent restricted net assets. What is the difference? Is it because the word RETAINED?

BEC- PASS

[marqzho]

Spartans92
Can you post the exact question about the retain part?

Donations received to be used for ongoing program services is considered unrestricted net asset.
If the donor restricts that only the $ earned by that donation is to be used for ongoing program services, it is considered permanent restricted net assets

REG 90
FAR 95
AUD 98
BEC 84

[Incoming91]

Could anyone share their method of learning DTA and DTL? It just doesn't stick with me.

Using Becker but if someone has anything supplemental, that would be great.

REG: 80
FAR: 78 (x2)
AUD: 6/10
BEC: 7/20

[Author]

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