[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]

@CPAHopeful11 — Good luck tomorrow. I have not been posting on the forum as I have been trying to nail down some of the more difficult sections. Let us know how it goes! I test two weeks from today and am SUPER nervous about it — even more than the other sections I have taken.

[Juliemiddle]

@CPAHopeful… DR – Other Financing Uses, CR – Cash. On the flip side, make sure the receiving fund credits Other Financing Sources (NOT Revenue)

General Question…how important do y'all think Debt Restructure is? I've got the general concept down, but I just took a SIM and got a solid 10% correct. I'm not sure if I really want to devote time I don't have for this topic.

AUD: 84 - Oct. 2013
BEC: 83 - Feb. 2014
REG: 91 - May, 2014
FAR: 68, 96 - Oct. 2014...DONE

CPAExcel, Ninja Audio (all sections)

[Anonymous]

Thanks 2014CPAHopeful and also Julie for the help.

Okay, as for debt restructure? I'm with you, I will go over it again right now just to get refresh my mind on the concept but I as well can't figure out the simulation. I think I'm not going to try either because it will be too time consuming.

And that is the JE I figured, but the Wiley book also adds in the transfer in and transfer out.

[Anonymous]

How exactly does the revaluation model JEs work for when the carrying amount decreases and increases?

[Anonymous]

On June 2, 20X1, Tory, Inc., issued $500,000 of 10%, 15-year bonds at par. Interest is payable semi-annually on June 1 and December 1. Bond issue costs were $6,000. On June 2, 20X6, Tory retired half of the bonds at 98. What is the net amount that Tory should use in computing the gain or loss on retirement of debt?

Select an answer:

A.

$249,000

B.

$248,500

C.

$248,000

D.

$247,000

[Anonymous]

Question for anybody..If you are doing a simulation with Journal entries and say you debit cash for $100 on the first line and debit land for $100 on the second line, but the answer has it the opposite they don't count that as wrong on real exam do they? just did a Becker final exam and that happened on a couple i did. assuming no, but just wanted to confirm

[Anonymous]

No clue, and I hope not.

Would this be a transaction gain/loss or translation gain or loss?

Logan CO markets their products internationally. The company buys and sells good in Great Britain, France, and Germany. Although Logan's functional currency is the US dollar, the transactions are denominated in the currencies for each country as shown in the table below:

(They show rates for the two countries)

The following transactions are denominated in each country'y local currency.

On March 1, year 1, Logan sells goods on account to Lexington Corporation, located in London for (Euro) $370,000;

On November 10, year 1, Logan purchases supplies from Dietmar Corporation in Germany for (Euro) 190,000.

On December 20, year 1, Logan sells good on account for Cordier Corporation in France for (Euro) 250,000.

The (EURO) is just for the rate of that particular country that I put. So would these be transaction gain or losses or translation gain or losses? My test is like tomorrow so any help would be greatly appreciated LOL

Btw, this is from module 19 in the Wiley book if anyone has it.

[Peterman25]

C. 248,000. I did this the lazy way and probably got lucky. 250*.98 = 245. 1/2 the BIC = 3000. 248,000.

Do the JEs and the math on the BIC to do this the right way. 2,000 of the BIC has been expensed.

DR BP 250000

CR CASH 245000

CR BIC 2000

CR GAIN 3000

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

AZ license - Official 8/20/2015

[Peterman25]

Arent those all transaction gain/losses?

If memory serves me correctly, translation is when you translate foreign subsidiary financial statements to the reporting currency.

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

AZ license - Official 8/20/2015

[Anonymous]

Thank you!!!

So on that question they wanted the cash figure? And don't you subtract BIC costs from cash?

[Peterman25]

They wanted the amounts that figured into the gain or loss. And I am pretty sure that BIC is subtracted from bond proceeds upon issuance.

Go to bed CPAHOPEFUL. You have a big test tomorrow. Good luck. 🙂

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

AZ license - Official 8/20/2015

[Juliemiddle]

Hey, it looks like @Peterman25 has the right JE for the Bond Retirement problem, but the answer is D…$247k, because the gain is $3k. ($250k – $247k).

@CPAHopeful – BIC is credited to close it out, b/c it's initially recorded as a Non-Current Asset.

AUD: 84 - Oct. 2013
BEC: 83 - Feb. 2014
REG: 91 - May, 2014
FAR: 68, 96 - Oct. 2014...DONE

CPAExcel, Ninja Audio (all sections)

[Anonymous]

I couldn't imagine them not giving credit for journal entries in situations where line items are just switched around, but do they have people grade certain simulations or is it all graded by a computer?

if i DR cash 500

DR Loss 100

CR Building 600

But the answer was written

DR Loss 100

DR cash 100

CR Building 600

There is no way that could be graded wrong right?

[Anonymous]

Peterman was right, the answer was indeed C.

[Anonymous]

Nevermind…I had a question about the calculation as to why we use the 248 but found another way to calculate it:

Original carrying amount $500,000

Bond issue cost ($6,000 x 10/15) (4,000)

Net carrying amount 6-2-Year 6 496,000

Portion retired x 50%

Amount used to compute gain/loss $248,000

I'm still a bit confused though…because using Peterman's JE how could you come up with the right answer. Just add the gain to the cash? Will that work in every situation?

[Author]

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