[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

[NoraU]

Gabe, Let me try… You paid a check of $100 and recorded it as $70 by mistake. Lets say it is your personal check and before this record you had a balance of $1000. So you subtracted $70 and your balance now is 930. In reality and in bank it is $900 only. So when you get the statement from the bank and realize your mistake you need to subtract additional $30 from your balance to make it correct.

BEC 05/12/14 77
REG 08/25/14 82
FAR 11/25/14 80
AUD 02/25/15 72, 05/15/15 98! DONE!!!!!!!!!!!!!!!!!!!!!!

[Gabe]

@Nora THANK YOU! I am sending virtual high fives your way!

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

[Rocky123]

@Gabe

The check was recorded incorrectly in your checkbook for $59. You physically wrote the check out to me for $95. The bank cashed it and I received $95. There is a $36 difference ($95 – $59) that you need to subtract from your books. You gave me $95, not $59.

Does that make sense?

The tallest oak in the forest was once just a little nut that held its ground.

AUD-PASS
BEC-PASS
REG-PASS
FAR-PASS

Rocky123, CPA

[hudnetj]

🙁 i tried

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

DONE!!

CPA 3/15

[Gabe]

@Rocky. Yep. Thanks!! Only took me 35 posts to get it 🙂

@hud you're awesome!! and super patient haha. Thanks!

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

[Future Ninja]

How come you guys not around when I'm studying at night? :((

AUD - 79 (expired) retaking July 28,2016
FAR - 76 expiring July 31, 2016
BEC - 85
REG - 74,74,74,74,59,70,

[mb0363]

@futureninja, hi! unfortunately i can never seem to answer the questions u post! … obviously i'm not well prepared yet. as i go through my review im realizing how much information i have forgotten…so.much.material. UGH!

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

[salring]

Hi Ninja, now that you postponed what is your study plan? FAR has too much material am drowning.

[Determined CPA]

Question on treasury stock:

Original Issue:

10,000 shares or $10 par value

Common stock sold for $15/share

Cash 150,000

C/S 100,000

APIC C/S 50,000

Buy back Below:

200 shares repurchased for 12$/share under par method

Treasury stock 2,000

APIC – C/S 1,000

Cash 2,400

APIC – T/S 600

Can someone please explain where the APIC amounts are coming from? Where did 1000 and 600 come from?

Also, if you buy back treasury stock, isn't treasury stock going up?? So why do we debit it? isn't a debit to equity reduces equity?

please help!

A - 75
B - 78 God is good.
F - 77 Answered prayers.
R - 84! Done!!

Paperwork sent - waiting for license!!
Still on a cloud and in shock. Through God, all things will happen.

[mb0363]

@determinedCPA

the 1,000 comes from multiplying 200*5. The 5 comes from the ORIGINAL excess (10-5). The 600 is a plug figure and will be solved for last. You debit Treasury Stock because you bought back what you originally issued so you have to reverse out your first entry.

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

[NoraU]

@Determined CPA

Thank you for posting the question – I am learning by answering it: Par value method: purchase treated as retirement of the shares with TS treated as reduction in stockholder's equity. Paid in capital CS = Orig.price-par because TS aquired at cost = or less then original issue cost( otherwise retained earnings would be charged): ($15-$10)x200=1000. Paid in capital TS = original price-cost to aquire TS ($15-$12)x200=600.

BEC 05/12/14 77
REG 08/25/14 82
FAR 11/25/14 80
AUD 02/25/15 72, 05/15/15 98! DONE!!!!!!!!!!!!!!!!!!!!!!

[Mehwish]

TS reduces CS outstanding, hence it reduces your Equity. You are repurchasing your shares. So it makes sense to debit it.

The Par value method is being used in this question.

Everytime your repurchase price is less than your issue price, you debit APIC-TS.

Dr T/S (# of shares * Par value)

Dr APIC- CS (difference between par value and issue price times # of shares repurchased)

Cr Cash

Cr APIC-TS (Difference between repurchase price and Issue price times the number of shares repurchased)

Remember, if the repurchase price is greater than issue price, debit RE for difference between repurchase and issue instead of crediting APIC-TS.

[salring]

@Determined CPA, remember the Treasury stock is recorded @ par value. When you repurchase, the cash is credited for the full purchase price, TS @ par value and the plug is to APIC.

[Determined CPA]

wow – I would have looked at that all day and not figured that out – thank you all !!!

A - 75
B - 78 God is good.
F - 77 Answered prayers.
R - 84! Done!!

Paperwork sent - waiting for license!!
Still on a cloud and in shock. Through God, all things will happen.

[salring]

Does anyone know where I can get free Sims to practice on?

[Author]

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