[martimann]

I should be having a sweet enjoyable Christmas, instead Im here on my desk on CH2 of FAR making sure I understand all possible JE’s for “possible” simulations ten days away from FAR. I’ve been overwhelmed pretty much this whole year after passing AUD and REG. I can’t wait to get this CPA thing done pretty soon, cause it sure is kinda hellish, ruthless, and insane. Anyhow, I hope at some point I can look back at this post I wrote, just to remind myself that, YES, it was worth it.

[Anonymous]

It's more sour when you are repeating an expired FAR (expired 11.30.2015):(

[martimann]

@Amor D ,
Oh god, That's tough, I had all 3 passed and FAR stopped me dead on my tracks, FAR made my BEC expire. I would lose it if they were to take away an already passed FAR. We're almost there though, good luck!!

[Mike J]

Take heart, guys. You WILL do it. F-k “can.” You will.

I've failed A LOT before passing them. So I can confidently say you both WILL pass all.

As far as journal entries go, PLEASE don't try to memorize them alone.

Just think of what you're asked to do. Start with the account names themselves. Are you paying cash (credit) or receiving (debit)? For a bond, the discount accts (versus premium) are “contra” or opposite of Bond Payable or Int Expense. Expense account is often a debit balance.

You want to use the journal entries to basically solve for X.

When annuities are being used, they are usually used to setup the liability. Interest or minimum lease payments are equal over time. Bond Principal or bargain purchase option is a one shot deal (PV of $1). As time goes by, you take little bites out of the total liability. Reduce the obligation then reverse the bond payable at maturity.

Additonally For Government, become an expert in the differences among the fund accounts. Let name help. Agency only has “cash” & “due to…” and is for other govt entities versus Private Purpose which has other accts including fund balance and is for non govt purposes.

For Not For Profit, know how to categorize revenue.

…

Best of luck. You WILL do it.

[martimann]

Thanks @Mike030882,
I'm pretty good at balancing my JE's, I sometimes get stuck on small menutia, which usually they put on sims to throw you off. It's usually small details like extra issuing costs, accrued interest on bonds issued between payment dates, the different methods of recording treasury stock, and the freaken dividend payments after acquisitions and how to report them on each balance sheet.
You're right, can't memorize them cause if they throw different scenarios on test day you'll be screwed. I haven't touched GOV and NFP's for the last week, I want to leave them till the end so it's fresh haha.
Thanks for reminding me about the NFPs stuff I need to refresh on the hospital and university rules for revenue.

[Mike J]

You're welcome.

Yeah, those NFP are important too.

Bond issue costs are a separate debit AND subtract from issuance. NINJA has an excellent MCQ in the 2015(?) Difficult. Tip: write out the journal entry that you have to correct or reverse/retire.

Bond issue in between dates is very similar to on one of the int dates. You debit cash (plug) and credit note payable (face) as normal. But, you credit INTEREST payable for the face x stated rate x mm/12 for # mo from previous int date. Then on the next int date you debit int exp as normal. Debit int payable for the previous int payable amnt credited and credit cash.

Treasury Method versus Cost isn't bad. Start with the debit or credit to cash for sale or purchase at selling price x # stock–either method. Debit or credit Treasury stock at either par value or cost of price per stock depending on method. Then fill in the blanks. Use APIC up to the rate used in prior transactions. Then use Retained Earnings to balance.

I hope that helps.

[martimann]

@Mike030882
Thanks for the summary it's nice and short to the point. Specially for the in between dates on the bonds info. I'll throw some MCQ's later just to make sure I got it.

[Mike J]

No worries. I believe in spreading the wealth.

[Anonymous]

Wouldn't it be nice if FAR *did not* test at such a ridiculously and unnecessarily anal and microscopic level? 3 years from now, I am not going to remember all the entries for treasury stock purchase, repurchase, reissuance, retirement, etc. Those are all things that can be looked up online or in a textbook.

[Amortized and Energized]

Gov't and NPO ruined me the first time I took it. Don't take those two subjects lightly!

FAR - Aug 2015 (58), Feb 2016 (81)
u
BEC - May 2016 (79)
AUD - Jul 2016
REG - Aug 2016

[Nancy]

Yeah I have saved up a years worth of vacation to study FAR this week… The only bad thing is I've taken so long to get through the material I am starting to forget the early chapters :/

For I can do everything through Christ, who gives me strength.
Philippians 4:13

[Mike J]

@nancyD8

I've always said FAR is death from a 1000 papercuts.

That having been said, have faith in the work you put in. Take a deep breath. Remind yourself of that when you feel overwhelmed.

Now, just think about what they're asking and what data you're given. You'll be fine.

[Nancy]

@Mike030882 True, I think my biggest battle at this point with the exams is time and finishing the exam. So burned out, but I envision how glorious life will be once this is all over and keep pushing!

For I can do everything through Christ, who gives me strength.
Philippians 4:13

[martimann]

@crazyleon, certain things I'd be lucky if I remember them 6 months from now. 😆

@nancyd8, same here I used All my vacation days prior to all 3 previous tests and I passed them on the first try. But last time I took FAR I took 8 days off from work and still failed 🙁. Keep it up, “the sweet ain't as sweet without the sour.”

@hamms30, yeap GOV and NFPs can definitely be the downfall, too much detail. 😟

[Anonymous]

I'm taking FAR on January 7th. YES, forgetting details of earlier chapters is a real b*tch and I get so pissed off at myself for forgetting things. I don't think the other sections of the exam are like that; it's easier to remember concepts and other broader stuff but since FAR tests at the microscopic level, that makes it harder (for most of us not blessed with a perfect brain that never forgets anything.) Because this will be my first time in a Prometric and my first time taking any kind of test of this magnitude or complexity, I won't beat myself up if I don't pass.

[martimann]

@crazyleon,
I wish I would have gotten FAR out of the way first just like you're planning to do. Yeah the other sections are bad but not as bad as FAR. You should be fine,nobody goes in feeling fully prepared for FAR. Someone in the forum once said that “preparing for far is like dating a hottie WAY out of your league, it'll turn you insecure and make you cry”. Haha Good luck.

[Author]

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