[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

[Gabe]

@hud right on! it's a Ninja question. I've never not used a Spot Rate.

CPA, CFE
CISA- Experience will be completed by August 2016

[mb0363]

@gabe, yes becker provided these answers. required a direct multiplication of the percentages. maybe its in the English that makes the answers different?

BEC - PASS
AUDIT - PASS
REG - PASS
FAR - PASS

[Gabe]

I'll just keep posting all day 🙂 In ATTACK mode

CPA, CFE
CISA- Experience will be completed by August 2016

[thelonewolf527]

At June 30, Almond Co.'s cash balance was $10,012 before adjustments, while its ending bank statement balance was $10,772. Check number 101 was issued June 2 in the amount of $95, but was erroneously recorded in Almond's general ledger balance as $59. The check was correctly listed in the bank statement at $95. The bank statement also included a credit memo for interest earned in the amount of $35, and a debit memo for monthly service charges in the amount of $50. What was Almond's adjusted cash balance at June 30?

Can someone please explain to me why the 95/59 difference is supposed to be SUBTRACTED and not added? It appears to me that it's right in the bank but incorrect in the books, hence it should be added but the answer says it's supposed to be subtracted.

AUD - 08/04/14 - 83
FAR - 11/29/14 - 80
REG - 02/26/15 - 89
BEC - 05/30/15 - 86

DONE!

[Gabe]

Toigo Co. purchased merchandise from a vendor in England on November 20 for 500,000 British pounds. Payment was due in British pounds on January 20. The spot rates to purchase 1 pound were as follows:

November 20 $1.25

December 31 1.20

January 20 1.17

How should the foreign currency transaction gain be reported on Toigo's financial statements at December 31?

A.

A gain of $40,000 as a separate component of stockholders' equity

B.

A gain of $40,000 in the income statement

C.

A gain of $25,000 as a separate component of stockholders' equity

D.

A gain of $25,000 in the income statement

Answer is D.

So..transACTION gains recognized in the I/S

TransLATION gains recongized in OCI- yeah?

CPA, CFE
CISA- Experience will be completed by August 2016

[Gabe]

@lonewolf. That is odd. I would assume you would add it as well…

CPA, CFE
CISA- Experience will be completed by August 2016

[hudnetj]

@wolf.. it's subtracted because they were suppose to pay (subtract from their books) $95… hence they need to subtract that difference to make up the mistake since they only recorded $56 instead of $95

BEC - 76
REG - 76
FAR - 77
AUD - 63, 89

DONE!!

CPA 3/15

[Gabe]

So…

Books: $59

Bank: $95

So they subtracted the difference to get to a total of -0- on the books? So then, the books would have $0 and the bank would still have $95.

CPA, CFE
CISA- Experience will be completed by August 2016

[hudnetj]

No the books already have the check issued at $59.. Subtract an additional $36 so the total check on the books is $95

BEC - 76
REG - 76
FAR - 77
AUD - 63, 89

DONE!!

CPA 3/15

[Gabe]

How does subtracting $36 from $59= $95?

Am I just being really dense here? Can you word your explanation differently @hud? Explain it to me like I am a 2.5 year old.

CPA, CFE
CISA- Experience will be completed by August 2016

[hudnetj]

@Gabe yes transactions on income statement. translation in OCI

BEC - 76
REG - 76
FAR - 77
AUD - 63, 89

DONE!!

CPA 3/15

[hudnetj]

ha ok sorry.. I write you a check for $95.. You take it to the bank and cash it. The bank records a deduction of $95 in my account.. My dumbass, (but sexy), accountant records the check as $59.. Since the check was actually for $95 I need to subtract an additional $36 from my books. That way I'm subtracting the original $59, plus the additional $36 adjustment that I made to equal $95.

Make sense?

Than the $35 interest is added to my book, the $50 fee is subtracted.. My new book balance will be $9,961

BEC - 76
REG - 76
FAR - 77
AUD - 63, 89

DONE!!

CPA 3/15

[hudnetj]

Does this forum not post responses right away? I'm seeing new responses all over the place everytime i refresh

BEC - 76
REG - 76
FAR - 77
AUD - 63, 89

DONE!!

CPA 3/15

[Gabe]

@hud I think it's delayed a little.

So…I think I am thinking way too hard on this. I still don't get it lol.

“That way I'm subtracting the original $59, plus the additional $36 adjustment” <– how does this not equal zero?

Oh dear baby cheeze its…It's not you @hud, I just…can't grasp this right now lol.

full disclosure: I have always had issues with adding/subtracting errors. Give me a pension calculation and I am on it, but simple bank error and I'm all confused LOL

CPA, CFE
CISA- Experience will be completed by August 2016

[jeff]

Some posts get flagged for spam, but 97.358% go through right away.

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

[Author]

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