[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

[thelonewolf527]

Well on my second time through Becker I feel the need to say that I am STILL absolutely lost on bonds. Some of these questions are ridiculous and weren't taught well at all in my opinion

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

DONE!

[Future Ninja]

anybody tried the aicpa sample test for FAR. I only got 3 correct answer out of 5 MCQ = 60%. ouch!

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

[Future Ninja]

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

[ron10590]

On January 1, year 2, Near acquires 100% of Far. On December 31, year 2, Near paid $91,000 to purchase $100,000 of bonds issued by Far. The bonds mature on December 31, year 6, and were originally issued at par ($100,000). The bonds pay interest annually on December 31 of each year, and the interest was paid to the prior investor immediately before Parent's purchase of the bonds.

The Journal Entries (solution) is:

DR Bonds Payable 100

DR Discount on Bonds Payable 9

CR Gain on Retirement of Bonds 9

CR Investment in bonds 100

How did they arrive at this solution?

REG (7/14): 82
FAR (11/14): 81
BEC (1/15): 83
AUD (5/15):

[Gabe]

@ron

I always do the entries I know for sure…

We need to get the Bond Payable and the investment off our books so..

DR BP 100 (remove from books)

DR Discount 9 (100-91)

CR Gain on retirment 9 (plug)

CR investment 100 (remove)

Does that help?

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

[Gabe]

Since everyone is discussing bonds…

Effective is synonymous with Market rate, correct?

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

[Gabe]

@Future what AICPA test are you referring to? The practice questions?

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

[ron10590]

@Gabe:

I tried to make the initial entries to figure out what needs to be eliminated:

Sub sells to outsider:

DR Cash 100

CR B/P 100

Parent buys bond from outsider:

DR Investment 91

CR Cash 91

elimination entry would be:

DR B/P 100

CR Investment 91

CR gain on extinguishing bonds 9

Why does that not work?

REG (7/14): 82
FAR (11/14): 81
BEC (1/15): 83
AUD (5/15):

[ron10590]

Goodwill is calculated as total Fair Value (fair value paid + fair value of NCI) – Fair Value of Net Identifiable Assets. For net identifiable assets can you look at the equity section? FV net id assets seems to be the same as Common Stock + APIC, but excluding Retained Earnings.

REG (7/14): 82
FAR (11/14): 81
BEC (1/15): 83
AUD (5/15):

[ron10590]

Also, I believe that is correct–effective rate = market rate

REG (7/14): 82
FAR (11/14): 81
BEC (1/15): 83
AUD (5/15):

[gsternberg]

Hello all,

Took my FAR last week. My first part of the CPA exam. I studied for ten weeks and for over 300 hours and feel like the SIMs kicked my butt. Do they curve at all?? I heard that they sometimes drop one of the SIMs. I hope so. Sigh… I'm so sick of this topic and want to move on to the next part but I'm fearful the SIMs did me in. 🙁

[mb0363]

@futureninja these come from the income tax section

@Ssbknyc thank you! my first attempt at these questions i never noticed any difference between income statement and balance sheet reporting… ill have to look into this more. thank you!

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

[Anonymous]

Thanks Ssbknyc, but I'm still a bit confused. You said “At the interest payment date the investor will pay the total accrued interest for the period LESS the accrued interest that was already paid when they bought the bond”. So the investor pay twice? Once for the accrued interest when they buy the bond and again on the interest payment date? Did you mean that at the interest payment date the investor will RECEIVE the interest less accrued?

[Missbots]

@ gsternberg, i hear they always have one pretest on the sims, so hopefully the one you didnt know or uncomfortable with was just a pretest,

[gsternberg]

Thanks Missbots, so scary waiting. Another71 is predicting that scores will be released this Friday. I'm praying that is true and not have to wait the whole weekend to find out on Monday.

[Author]

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