[jeff]

Welcome to the Q4 2016 CPA Exam Study Group for FAR.

If this is your first post in the study group – please post your target exam date (just the time frame to preserve your anonymity), and your past history with this exam (optional, of course).

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

[GiniC]

@brian seelinger – That's how I felt coming out of REG, and I got an 82. Of course, I spent the whole time til the score came out thinking I must have misread a lot of the questions…

Gini

[stina71223]

Hi all! What is recommended to consider the recently released questions? I am studying to retake FAR( using Becker, Roger cram and Ninja notes )so was wonder if the released questions per topic is an indication that the more questions released per topic the more likely that topic wont be as heavily tested again? Or could it mean the opposite, the topics with lots of released questions indicate that it will be still heavily tested with a new wave of questions to replace them? Any thoughts on this?

[letsrun4it]

brian- i have a hard time telling what testlet is what. i feel almost no connection between test day and the score that comes a few weeks later!

BEC: 85
REG: 74, 78
AUD: 86
FAR: October?

[letsrun4it]

Alright I'm done studying, my test is tomorrow.

I did Roger videos + 2000 MCQ Roger Questions + 3830 Ninja MCQ 69% average, 93% trending, 58 questions I never answered correctly.

BEC: 85
REG: 74, 78
AUD: 86
FAR: October?

[mckan514w]

Good Luck letsrun4it!

I am reposting this in hopes that someone can help me out on this!!! It still confuses me… how would the origination fee be classified? Thanks!!!

Why wouldn’t you classify the 6,000 loan origination fee as income? in this question– I understand the journal entry for Dec. 31 to record accrued interest but I guess I am confused on how you would record the original Note…. I was thinking it would be
DR Note Receivable 200,000
CR Cash 194,000
CR Income from loan 6,000

On December 1, 20X1, Money Co. gave Home Co. a $200,000, 11% loan. Money paid proceeds of $194,000 after the deduction of a $6,000 nonrefundable loan origination fee. Principal and interest are due in 60 monthly installments of $4,310, beginning January 1, 20X2. The repayments yield an effective interest rate of 11% at a present value of $200,000 and 12.4% at a present value of $194,000. What amount of income from this loan should Money report in its 20X1 income statement?

A.$0

B.$1,833

CORRECT ANSWER C.$2,005

D.$7,833

Net proceeds of the loan were $194,000 and the effective interest rate was 12.4%.

and they ask me why I drink...

FAR- 61-next time I'll ask for lube instead of a calculator
REG-75- Never been so happy to see such a low grade
BEC- 8/11
AUD- 9/2

[brian seelinger]

All, thanks for the support…I come from finance so I was thinking I crushed it or bombed it…

mckan514w

[Claudia408]

This question really confuses me. Isn't Retained Earning and APIC a part of Stockholder's Equity? What am I missing here?

On May 1, year 1, Rhud Corp. declared and issued a 10% common stock dividend. Prior to this dividend, Rhud had 100,000 shares of $1 par value common stock issued and outstanding. The fair value of Rhud’s common stock was $30 per share on May 1, year 1. As a result of this stock dividend, Rhud’s total stockholders’ equity…?

Answer: Did Not Change
Retained earnings (10,000 × $30) 300,000
Common stock (10,000 × $1) 10,000
Paid-in capital 290,000

BEC - 75 (3x)
AUD - 78 (3x)
REG - 67, 66, Aug 1
FAR - 54, Sept 8

[Claudia408]

Ok NM… question is asking about TOTAL stockholder's equity so the debits and credits affect is zero. ugh, the details!!

BEC - 75 (3x)
AUD - 78 (3x)
REG - 67, 66, Aug 1
FAR - 54, Sept 8

[SONA]

HOW DO YOU KNOW WHICH METHOD TO USE?
Blau and Rubi are partners who share profits and losses in the ratio of 6:4, respectively. On May 1, their respective
capital accounts were as follows:
Blau 60,000
Rubi 50,000
On that date, Lind was admitted as a partner with a one- third interest in capital and profits for an investment of
$40,000. The new partnership began with total capital of $150,000. Immediately after Lind's admission, Blau's capital
should be:
a. $56,667
b. $54,000
c. $50,000
d. $60,000
Explanation
Choice “b” is correct. $54,000.

[GiniC]

@SONA –

You have three choices – exact, bonus, and goodwill.

-To use exact, you would be trying to come up with the investment amount, but they gave that to you – so you can't use that one.
– To use goodwill, you would have to reduce the total capital to $120,000 in order to make the $40,000 investment equal to 1/3 of the new partnership total.
Since they said the total is $150,000, you can't use goodwill. That leaves bonus.
– If you add up the three investments of $60,000, $50,000, and $40,000 they total $150,000; that means you must use bonus

Does that help?

Gini

[accountingisfun]

Was hoping someone could confirm if the two statements I wrote below are true (Cost and Par Methods (Treasury Stock)).

I can't seem to get the journal entries straight when I'm doing Becker multiple choice, so something just isn't clicking :(…

When you have a loss on a re-acquisition first reduce “Additional Paid-In-Capital Treasury Stock” and if APIC T/S does not have a large enough balance reduce retained earnings (?)

When you have a gain on re-acquisition under the cost method, credit APIC T/S. When you have a gain on re-acquisition under the par method, credit APIC C/S.

[mckan514w]

@Claudia408- If I am not on here this weekend wanted to say GOOD LUCK! on Monday! Knock it out of the ballpark!!!

and they ask me why I drink...

FAR- 61-next time I'll ask for lube instead of a calculator
REG-75- Never been so happy to see such a low grade
BEC- 8/11
AUD- 9/2

[emichelle2321]

Does anyone have a good Lease “cheat sheet” I thought I had a good grip on this, but now going back through the questions I feel like I need extra reinforcement.

Good luck everyone!

[accountingisfun]

Hey @emichelle2321 – I might have one I just have to dig it up, might have left it on my work computer.

[Claudia408]

@mckan – thank you so much! i really hope i can pass FAR and see the light at the end of this LOOOONG tunnel. my exam is at 430pm pacific so it will be an even spookier Halloweenie for me. LOL.

may the CPA Universe Gods be on my side!

BEC - 75 (3x)
AUD - 78 (3x)
REG - 67, 66, Aug 1
FAR - 54, Sept 8

[Author]

Replies