[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

[Lidis]

Period Coupon Interest Exp Disc. Amort. Bond disc CA Owe

0 4.50% 5% 30,500 469,500 500,000

1 22,500 23,475 975 29,525 470,475

[Peterman25]

Revenue – you are correct. The answer is B 470,475.

However, these types of questions kill me because of the wording. It is asking for bonds payable. The answer is carrying value. When we set these up we are taught to setup a bonds payable account and account for this account and a discount/premium account separately. To me, bonds payable does not equal carrying value. I wish they would word questions like this a bit more clearly. GRRRRRRRRRRRRRRRRRR

BEC 7/14 - PASS
FAR 10/14 - PASS
AUD 1/15 - PASS
REG 4/15 - PASS

AZ license - Official 8/20/2015

[Anonymous]

In the last week of year 2, the company recorded revenue for services rendered to some clients in year 3.

What is the adjusting entry for this?

[Anonymous]

1.) In which of the following funds should the debt service transactions of a special assessment issue for which the government is not obligated in any manner be reported?

A.

Agency fund

B.

Trust fund

C.

Internal service fund

D.

General fund

2.) The following information pertains to Grove City's interfund receivables and payables at December 31, 20X1:

Due to special revenue fund from

general fund $10,000

Due to agency fund from special

revenue fund 4,000

In Grove's special revenue fund balance sheet at December 31, 20X1, how should these interfund amounts be reported?

A.

As an asset of $6,000

B.

As a liability of $6,000

C.

As an asset of $4,000 and a liability of $10,000

D.

As an asset of $10,000 and a liability of $4,000

[Peterman25]

In the last week of year 2, the company recorded revenue for services rendered to some clients in year 3.

looks like an error? so the JE was recorded in X2:

DR A/R

CR REV

So reverse that in X2 and record the original entry in X3?

If taxes were calculated on the incorrect revenue you would have to reverse that too. Same if it was closed out to RE. You would need to adjust that too. And if any allowances were recorded on the revenue in error…reverse those.

Is that kind of what you are looking for?

BEC 7/14 - PASS
FAR 10/14 - PASS
AUD 1/15 - PASS
REG 4/15 - PASS

AZ license - Official 8/20/2015

[Peterman25]

1 A – agency fund? because the govt is acting only as a processing agent and doesn't actually ‘own' it.

2 D. asset of 10,000 and liability of 4,000? I am guessing. If it is correct I wouldn't know why. explanation?

BEC 7/14 - PASS
FAR 10/14 - PASS
AUD 1/15 - PASS
REG 4/15 - PASS

AZ license - Official 8/20/2015

[Anonymous]

Correct on both accounts!

For the second one, due from is a receivable account and due to is a payable account.

[Anonymous]

On January 2, 20X1, Smith purchased the net assets of Jones's Cleaning, a sole proprietorship, for $350,000, and commenced operations of Spiffy Cleaning, a sole proprietorship. The assets had a carrying amount of $375,000 and a market value of $360,000. In Spiffy's cash-basis financial statements for the year ending December 31, 20X1, Spiffy reported revenues in excess of expenses of $60,000. Smith's drawings during 20X1 were $20,000. In Spiffy's financial statements, what amount should be reported as Capital-Smith?

Correct

$390,000

B.

$400,000

C.

$410,000

D.

$415,000

---

Correct Answer is ‘A'.

Why is the cost of the asset used to determine the original investment of the capital account? Shouldn't it be the FV?

[rzrbkfaith]

@Peterman25 – the answer is D because “due to special revenue fund from the general fund” would be a liability on the general fund (due from) and a receivable in the special revenue fund (due to) and the “due to agency fund from the special revenue fund” would be a liability to the special revenue fund (due from) and a receivable in the agency fund (due to). They tried to trick you with the “due to special revenue fund from the general fund.”

@aspiring1accountant – From a REG perspective, its a non-taxable transaction, so you would use the cost of the asset, rather than the FMV.

AUD - 99
BEC - 97
REG - 91
FAR - 1/8/16

[Anonymous]

@rzr, you should just sit for FAR and REG already

You're literally insane. Well done.

[Anonymous]

Agreed, she could pass FAR right now and I'm being 100% serious.

[Anonymous]

@Rzr, is a she?!

[rzrbkfaith]

Ha ha ha ha ha! I got a great chuckle. Yes, @_Nick_ I am a “she.” And there is no way I could pass REG or FAR… yet. Hopefully for REG I will be up to par in a week or two and Nov 14 is my goal for FAR, but I may have to push it a week. We'll see!

AUD - 99
BEC - 97
REG - 91
FAR - 1/8/16

[Anonymous]

my mind is seriously blown…

although the profile picture and references to dance and such make sense now…

[Peterman25]

If you paid less for the assets then it would be a gain on the BPO, correct?

Your capital account would be what you paid with a gain being recognized in income. (let's keep this FAR 🙂 )

+income

-disbusements

BEC 7/14 - PASS
FAR 10/14 - PASS
AUD 1/15 - PASS
REG 4/15 - PASS

AZ license - Official 8/20/2015

[Author]

Replies