[jeff]

Free Study Planner, Notes, Audio, Flashcards: https://www.another71.com/cpa-exam-study-plan/

Free CPA Exam Survival Guide: https://www.another71.com/cpa-exam-survival-guide/

AUD - 79
BEC - 80
FAR - 76
REG - 92

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

[m1kal]

taking FAR 7/25. Very nervous.

REG - 76
BEC - 76
AUD - 93
FAR - 71, 68,69, 70, retake 7/19/16

[Wanna_B_TXCPA2014]

@EYNewHire, thanks. I will have to re-read this Q&A when I've had some more sleep.

[Anonymous]

Started my review of F9 today. Will try finishing it by tomorrow. By Friday I shld hv reviewed F8,F9 and F10 once and will spend friday going over the MCQs I got wrong during this review.

This will give me a solid month to go over F1-F7 one more time and also to do the Becker Final review. I cannot wait to finish this exam and never to hv to look at this material again.

I go through moments of mini panic attacks every once in a while.. Can I do this?

[Tootsie]

Question: If you have unused materials in an R&D project, I would think you would NOT include the unused materials in the R&D cost? I know that used materials are included in the R&D cost.

FAR - 76
AUD - 88!!! DONE!!!!!!!!
BEC - 76
REG - 77

never, never, never give up

[Anonymous]

@ – m1kal its good to be nervous. This will keep you more focused to work harder as you don't leave anything to chance.

@ – Tootsie – Not 100% sure but If you have unused material wouldn't that be in your inventory because you have not yet used it towards your R & D and you will in the future? Normally R&D is expensed as incurred so you wouldn't have unused materials per say. I know that for Capitalizing there are very specific rules but your not referring to that.

[Lidis]

Any item defined as a R&D must be expenses as incurred. However, if the item has an alternative future use it might be capitalized. If it is a building or equipment. The depreciation for these items should be expense as a R&D expense.

Lidis

[Lidis]

Any item defined as a R&D must be expenses as incurred. However, if the item has an alternative future use it might be capitalized. If it is a building or equipment. The depreciation for these items should be expense as a R&D expense.

Lidis

[Tarheelgirl]

On April 1, 20X2, Hill Corp. issued 200 of its $1,000 face value bonds at 101 plus accrued interest. The bonds were dated November 1, 20X1, and bear interest at an annual rate of 9% payable semiannually on November 1 and May 1. What amount did Hill receive from the bond issuance?

A. $194,500

B. $200,000

C. $202,000

D. $209,500

Answer D.

Sales price of bonds = 1.01 x 200 x $1,000 = $202,000

Accrued interest = (5/12) (.09 x 200 x $1,000) = 7,500

---

Total received from bond issuance $209,500

========

Where does the (5/12) come from?

FAR - 46, 79 (7/8/14)
AUD - 56, 59, 2/23/15 3rd times a charm!
BEC - 69, 74 Really??
REG - April, I hope. Fingers crossed!

[Tootsie]

I thought it'd be included in inventory as well.

FAR - 76
AUD - 88!!! DONE!!!!!!!!
BEC - 76
REG - 77

never, never, never give up

[Wanna_B_TXCPA2014]

Anyone have an idea of where WTB was going on the logic of this SIM?

Identify the section of the professional standards that provides the basis for valuing inventory when it is initially acquired.

My answer:

30-9 Cost for inventory purposes may be determined under any one of several assumptions as to the flow of cost factors, such as first-in first-out (FIFO), average, and last-in first-out (LIFO). The major objective in selecting a method should be to choose the one which, under the circumstances, most clearly reflects periodic income.

Correct answer:

30-1 Although principles for the determination of inventory costs may be easily stated, their application, particularly to such inventory items as work in process and finished goods, is difficult because of the variety of considerations in the allocation of costs and charges.

[EYNewHire]

@Tarheelgirl The bonds were issued on April 1 of 20×2 but were dated November of the previous year. The question states that the buyer would pay accrued interest so between November and April is 5 months.

[Jspann225]

@tarheelgirl the 5/12 comes from the bond having been sold 5 months after the date of the bond. So every year year the bond holder would get 9%, because the bondholder did not have the bond the full 12 months they are only entitled to 7 months of interest.

In this question the person purchasing the bond is going to pay the company the accrued interest and the company will book a payable for that same amount.

Cash 209,500

…….Bond Payable 200,000

…….Interest Payable 7,500

…….Bond Premium 1,500

FAR - 93 - 7/1/14
AUD - 94 - 7/25/14
REG - 92 - 8/30/14
BEC - 89 - 10/6/14

[EYNewHire]

@ Wanna_B_TXCPA2014 Yeah that's weird. I would have picked the same as you.

[Tarheelgirl]

Thanks JSpann and EYNewHire. I did not see that November was the year before. I was thinking it was the year of the issue date.

FAR - 46, 79 (7/8/14)
AUD - 56, 59, 2/23/15 3rd times a charm!
BEC - 69, 74 Really??
REG - April, I hope. Fingers crossed!

[Tncincy]

OK , so I got my ninja mcq's for far. Let's see if this will help me retain…….

It begins with a 75
Been here too long as a cheerleader.....time to pass

It begins with a 75
Been here too long as a cheerleader....ready to pass

[Author]

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