[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]

Spartans,

You sold Treasury stock that you previously bought.

Previously:

Dr.T/S XXX
Cr. C/S XXX

Now when selling T/S:

Dr. Cash 10,000
Cr. T/S 8000
Cr. APIC 2000

So you are increasing (you add) the t/s to oustanding shares because when you sell T/S, it becomes oustanding once again

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

[Just3Letters]

Spartans,

You sold Treasury stock that you previously bought.

Previously:

Dr.T/S XXX
Cr. Cash XXX

Now when selling T/S:

Dr. Cash 10,000
Cr. T/S 8000
Cr. APIC 2000

So you are increasing (you add) the t/s to oustanding shares because when you sell T/S, it becomes oustanding once again

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

[Spartans92]

Thanks man! Appreciate the JE.

BEC- PASS

[Just3Letters]

You got this!

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

[mckan514w]

Well that made me want to barf– (am currently drinking a beer for you Spartan and wishing you better luck than I had)– mcq's were doable but there was one topic that I had never even heard of let alone studied and the SIMs– just OMG the SIMs… I didn't finish one of them… and without saying too much the Authoritative literature wasn't much help me on two of them. One thing I did neglect that I will be sure not to next time is the “easy questions”- that really tripped me up on the first testlett because I kept thinking “there has to be more” and over thinking…. sometimes a question really is just a question… Good luck everyone. I kinda feel like I spent a lot of time studying things that didn't even show up or there were only one question on… I will pass along to know your JE's stone cold… I know without a doubt that will be back in here 4q but I really hope that I don't see any of you back in here with me…. GOOD LUCK everyone–

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

[Just3Letters]

Mckan,

you never really know! There are SO many reports of people being 100% positive that they got destroyed on the test and ended up passing! That's because the test adjusts for how good/bad you are doing.

Don't lose hope!

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

[Just3Letters]

Roro, Inc. paid $7,200 to renew it's insurance policy for three years on March 1, the effective date of the policy. At March 31, Roro's unadjusted trial balance showed a balance of $300 for prepaid insurance and $7,200 for insurance expense. What amounts should be reported for prepaid insurance and insurance expense for Roro's financial statements for three months ended March 31?

Answer- PPI: 7,000 Expense: 500

I get that PPI is 7000 because the 7200/36 months = 200 expense for the month of March.

Why is the insurance expense total 500? Obviously the unadjusted TB amount of 300 is added to the current expense. I just don't understand what the outstanding 300 is related to?

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

[marqzho]

That $300 is probably for Feb or earlier period that should have been adjusted but was not adjusted 🙂

REG 90
FAR 95
AUD 98
BEC 84

[ABTX411]

Mckan- after AUD, I had a full blown panic attack, crumpled up in heaping pile of tears, CONVINCED that I had failed. I flagged 25 questions! I'm living proof that you can't judge your performance until the scores are released. It's not worth the stress.

BEC - 90 - 2/04/2016
AUD - 97 - 2/29/2016
FAR - 92 - 4/19/2016
REG - 88 - 5/19/2016

[Just3Letters]

Thanks Marqzho! They always have to add in something to make it tricky!

Mckan, I agree with ABTX! Next month when I take FAR you guys can remind me that I said this 🙂

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

[lolo]

@Just3Letters, its just weird! I calculated it and I thought the answer should be 600$! its just weird question because all I know that unadjusted trial balances has no meaningful value for the question!

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

[marqzho]

mckan514w

I have the same experience in FAR like ABTX411. I called my gf right after the exam and told her I was screwed 🙂 You just never know how you performed until the score released. You don't need a 99 to pass the exam, you just need a 75. and 75 doesn't mean 75% correct. maybe you just need 70%, or 60%. And for the missing SIMS, it's worth only 6.66 point toward your score or it could be a pre-test question. Who knows :)?

REG 90
FAR 95
AUD 98
BEC 84

[Just3Letters]

Just think poor Spartans is just about finishing his first testlet right now :/

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

[ABTX411]

Just3 –

Think of it as 2 completely independent insurance policies that have both been prepaid. For instance, I have health insurance and homeowners insurance. Both can be paid in advance for up to a 12 month period, but my homeowner's is due on December 1, and my Health is due on July 1. Both of the pre-payments are booked as a debit to pre-paid insurance but are not actually related to each other. When one of these pre-paids has been fully expensed, the other still has a balance. Does that make sense?

BEC - 90 - 2/04/2016
AUD - 97 - 2/29/2016
FAR - 92 - 4/19/2016
REG - 88 - 5/19/2016

[lolo]

@ABTX411, thank you! now it makes sense…

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

[Author]

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