[jeff]

SO I know every test is different but does anyone have any insight on what has been heavily tested recently? I take the exam Monday and I need to narrow my focus….Thanks!

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[Anonymous]

Thanks, so it reduced liability thought so but didn't know if you credit expense.

[Anonymous]

I might be wrong.. But someone please correct me if I am wrong.

[Melans]

@Aspiringaccountant – I think because it is non-refundable, and the order was cancelled it would be come revenue. I am not 100% on that, but if the company doesn't have a liability to the client anymore, you wouldn't leave the funds there. And if it is non-refundable, you wouldn't give the funds back to the client- so I am assuming there is just no where else for them to be??

Initially, I answered it like you did, but on second look- they wouldn't stay in the account.

AUD 7/30/12 73; 12/2/13 85
BEC 7/19/13 81
REG 8/2/14 83
FAR - Jan 2015

[zkaraca2012]

@caakankshajain, yes you're absolutely correct! You need to debit expense and credit liability. Thank you for the correction!! 🙂

AUD 78 Lost Credit, retake after FAR rematch
BEC 83 (Expires 2015-02-28)
FAR 71 Failed (2014-09-09), retake in Q4'14
REG 80 (Expires 2015-11-30)

[Anonymous]

You mean debit liability and credit expense right?

For LCM, what would be the answer here:

NRV 8, NRV Less PM 6, RC 5, and OC 4.

Would it be OC?

[zkaraca2012]

@Cpahopeful, no DR: Expense CR: Liability.

Come to think of it, the entry on the amortization of gain can also be:

DR: Deferred tax expense – -OCI

CR: Deferred tax liability – Income statement.

And yes, the answer should be OC 4.

AUD 78 Lost Credit, retake after FAR rematch
BEC 83 (Expires 2015-02-28)
FAR 71 Failed (2014-09-09), retake in Q4'14
REG 80 (Expires 2015-11-30)

[Anonymous]

Zkaraca, I just studied the CIP section from the Roger book and the JEs only go as far as this:

Billings: DR Receivable CR Billings

Costs incurred: DR CIP CR Cash

Collections: DR Cash CR Receivable

Profit: DR CIP CR Income

Project Completed: DR LT Asset CR CIP

Year end: DR CIP Construction Exp CR Construction Revenue

[Anonymous]

So actual return on plan assets increases liability? Well, I didn't know that and clearly need more work on pensions

[zkaraca2012]

@CPA, we were talking over the tax journals of the pension plans, not the actual pension plan items' journals.

AUD 78 Lost Credit, retake after FAR rematch
BEC 83 (Expires 2015-02-28)
FAR 71 Failed (2014-09-09), retake in Q4'14
REG 80 (Expires 2015-11-30)

[zkaraca2012]

And I concur your j/e list for the CIP, they matched my Wiley notes. Happy Sunday!

AUD 78 Lost Credit, retake after FAR rematch
BEC 83 (Expires 2015-02-28)
FAR 71 Failed (2014-09-09), retake in Q4'14
REG 80 (Expires 2015-11-30)

[RZHANG13]

Hi,guys. Really don't understand this question from F8.

The employer net pension liability for the Golf City Fire Department increased by $200,000 from Year 1 to Year 2 as a result of a change in the formula used to compute benefits for retiring firemen. The change includes $150,000 of cost attributable to prior service. As a result of this change, Golf City will display the following on their Year 2 government-wide financial statements:

a.Deferred outflows of resources of $50,000

b.Pension Expense of $200,000

c.Deferred outflows of resources of $150,000

d.Deferred inflows of resources of $50,000

Answer is A, but I chose C. Deferred outflow of resources of 150,000 because 150,000 attributes to prior service cost. And 50,000 should be expensed because that is for the current period. So could someone tell me why i was wrong? THANKS!

[Anonymous]

Found out I failed FAR last week, but I will go at it again. Just re-applying for the exam and purchasing the ninja set cost me an arm and a leg. although my stomach is having a hard time swallowing the amount of money i just spent, it will all be worth it in the end. putting my trust in the ninjas!

[ksfc2727]

I'm on Becker chapter 2, is this stuff incredibly boring to anyone else? I've knocked out the other sections and I know none of them are “fun” to study for but in the early going, I'm not digging FAR. Material seems kind of random and difficult to apply. Probably just burnt out.

[Anonymous]

@ksfc2727, FAR is my last as well, and I'm extremely burnt out and disgusted with the difficulty of this material…

Moving on to F7 later today, will postpone my test date most likely..

[moreinfo2013]

Let's hang in there!!! I “hear” some discouragement on some of your journeys and if anybody can understand is this team here on this forum…but we need to move on…we need to conquer this beast! Hang in there!

A quote for today:

“I'm not telling you it's going to be easy, I'm telling you it's going to be worth it!” Art Williams

[Author]

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