November 24, 2018 at 12:00 pm #2069546Jeff Elliott, CPAKeymaster
Welcome to the FAR CPA Exam study group. 🙂
Please introduce yourself & when you're taking your exam (approximate timeframe).
FAR Study Group Links and Resources:
- NINJA CPA Review Monthly – Full FAR Course for $67/mo
- How to Study for FAR with NINJA Only
- How to Pass FAR in 20 Days
- How to Retake FAR After Failing
- I Passed the CPA Exam!
- I Passed FAR!
See Also:November 26, 2018 at 2:26 am #2071211CPA2beParticipant
Hi guys, I took REG this month and plan to test for FAR in January end. I am studying with Gleim.November 26, 2018 at 9:02 am #2071310AnonymousParticipant
Can someone please chime in and help me understand the flow and calculations behind this problem?
Pine Corp. is required to contribute, to an employee stock ownership plan (ESOP), 10% of its income after deduction for this contribution but before income tax. Pine’s income before charges for the contribution and income tax was $75,000. The income tax rate is 30%. What amount should be accrued as a contribution to the ESOP?
Correct B. $6,818
The solution per NINJA is provided below.
The contribution has to be 10% of the income after deducting the contribution amount. The income prior to the contribution is $75,000. Thus, the contribution amount, C, is:
0.1 (10%) × $75,000 – C
Solving the equation for C:
C = $7,500 – 0.1C
1.1C = $7,500
C = $7,500 ÷ 1.1 = $6,818November 26, 2018 at 9:28 am #2071370AnonymousParticipant
Can someone please help me? According to Becker's pass key, NFP organizations do not present funds. However, within the text it states, “fund accounting is not used for external financial reporting, although separate funds may be maintained for internal purposes”. How would I know which funds are allowed? This is confusing.
A not-for-profit hospital issued long-term tax-exempt bonds for the hospital’s benefit. The hospital is responsible for the liability. Which fund may the hospital use to account for this liability?
B. Specific purpose
D. General long-term debt account groupNovember 26, 2018 at 11:30 pm #2072498LiliParticipant
This is my 1st try and my 1st exam of the all 4, I'm using Ninja only, and my exam date is Feb 23rd, 2019
Good luck everyone! 🙂November 27, 2018 at 4:31 am #2072651drcpaParticipant
Lili Good luckDecember 6, 2018 at 7:00 pm #2102889
My hope is that this is a simple answer and I am overlooking the obvious. How many stocks were issued at what price?
Common stock (.10 par) $15,000
I am to understand that it is 50,000 shares at .30 per. Please help me understand how I would discern this with the info given? Much thanks and many nummy holiday cookies wished upon you.December 6, 2018 at 7:58 pm #2102940
I believe I've figured it out. The info was found in comparing last years stock issue and APIC to the following year. ;0)December 6, 2018 at 8:54 pm #2102994BunnyParticipant
Hello everyone! I just got approved and my notice to sit. Exam date is scheduled for January 3, 2019. I'm using Wiley CPAExcel and will probably use additional material on here. This is my first CPA Exam Section and I decided to go for FAR first ^_^.December 7, 2018 at 8:09 am #2103195
Hi Bunny! I am sitting Aud now but looks like we will be climbing that FAR mountain together. I hope to sit beginning of Feb as I cannot study through holidays.December 7, 2018 at 9:48 pm #2104545
Taking FAR in Jan-Q1. Last exam!!! I've used Becker for all 3 exams to date and will use for FAR.
BEC – 89
REG – 89
AUD – TBA (12/10)
FARDecember 8, 2018 at 10:26 am #2104797Jazzy87Participant
Welp, I'm here….lol I am reading the Ninja book and doing Yaeger lessons. I think someone said “climbing the FAR mountain” yup! Mm too! but it's more like Everest lol I hope to be done with FAR book by the end of December and then crank out MCQ's. Good luck everyone!December 10, 2018 at 7:39 pm #2107959MelParticipant
Sitting for FAR on Feb 2.December 11, 2018 at 12:11 am #2108430SwanParticipant
I am sitting for FAR on January 5th. This will be my 4th time! I made a 74 on all 3 tries. I am currently using Becker. I am not sure what the problem is, any suggestions on how to study and get over this hump? I watch all the lectures, read the text, do the mcq, and even make my own flash cards. I study all weekend and about 3 hours every weeknight. :/December 11, 2018 at 10:43 am #2109402
I've used Becker for all three of my exams and while I can't tell you this will work for you, I can tell you it worked for me.
1. I read every chapter 1st, making notes and highlighting major points.
2. Second, I listen to the lecture, adding additional notes.
3. For areas that are new, meaning, I've never seen it before; I will make hand written notes.
4. I take the practice exam.
When I've done this for every section, I will go back to section 1, module 1 and retake every single test and track the score for each exam in a spreadsheet. This gives me an idea of where I'm strong and where I'm weak. I'll take them all again and average the two grades. For every section that is still below 75, I run back through my notes again. If I'm really doing bad, I'll re-read the whole section again. Again, this is just what has helped for me. That being said, there have been quite a few questions on the CPA Exam that were not in my notes, lectures or practice tests. I know some questions on the exam are experimental and won't count too.
Also, I know that I am a visual learner and I have to remove all distractions from my personal space. I usually study after work, in a quiet place where the only light source is my computer and desk lamp. This removes all other distractions and allows me to focus solely on what's in front of me. It may be useful to determine what kind of learner you are and study accordingly. It helped me in College and now on the CPA. Good Luck. You're almost there.
BEC – 89
REG – 89
AUD – 87
First tries, using Becker CPA Review.December 11, 2018 at 11:36 am #2109540SwanParticipant
Thanks! I may have to start doing more MCQs and mix them up. I think my problem is having to re-study and now I feel like I am just memorizing the questions and answers instead of fully understanding the concept. I'll give your tip a try! Thanks a lot 🙂December 12, 2018 at 7:57 pm #2112165wmclafiParticipant
Hi – I’m studying for FAR using CPAexcel. I’ve passed Reg and Aud and have to retake BEC :(.
I tried to schedule FAR in Texas during Q1 2019 but surprisingly all the locations in TX have the same exact availability. Is that a coincidence where all the locations in the state have only Feb 1st available ? Or they haven’t yet opened all the slot? I’m just surprised how all the locations have the same open slots in feb (feb1) and nothing in March!December 13, 2018 at 4:58 pm #2113302Dev12Participant
Starting with FAR today, using Beckers. Would like to test on Feb 28th. Waiting for AUD results to be out on Dec 19th. I hope I passed. *Fingers crossed*December 19, 2018 at 3:30 pm #2121483April94Participant
Hey guys! Good luck to everyone studying for FAR. I found out today I failed FAR (72…UGH!) so I'll be trying again in February.December 19, 2018 at 10:28 pm #2122122sashapalekhaParticipant
Hello everyone. I’m planning to sit last week of February.December 20, 2018 at 1:46 pm #2123103JulieKParticipant
I'm using Ninja this time around because I need to study more efficiently. FAR has been the hardest section for me so I am going to tackle it first, pass it, and get it out of the way. Planning to sit at the end of January after I receive my NTS. Then I'm planning to sit for REG at the beginning of April. Not working full time, so I should have plenty of hours available – just need to buckle down.December 20, 2018 at 5:18 pm #2123505yicao74Participant
Can some one tell me why the “Note payable 30,000 increase” does not add back to the Net income? I got $377,000
Karr, Inc., reported net income of $300,000 for 20X1. Changes occurred in several balance sheet accounts as follows:
Equipment $25,000 increase
Accumulated depreciation 40,000 increase
Note payable 30,000 increase
During 20X1, Karr sold equipment costing $25,000, with accumulated depreciation of $12,000, for a gain of $5,000.
In December 20X1, Karr purchased equipment costing $50,000 with $20,000 cash and a 12% note payable of $30,000.
Depreciation expense for the year was $52,000.
In Karr's 20X1 statement of cash flows, net cash provided by operating activities should be:
D. $357,000.December 20, 2018 at 5:25 pm #2123535April94Participant
The question is asking for net cash provided by operating activities. “Note payable 30,000 increase” would increase cash inflow from financing activities. Also, you only add items from operating activities to net income. You do not add items from investing or financing activities to net income.December 20, 2018 at 5:30 pm #2123547
If I understand what you're asking correctly, then the journal entry to purchase the piece of equipment in December would have been:
Db: Equipment $50,000
Cr: Cash $20,000
Cr: Notes Payable $30,000
The lender would have paid the equipment seller directly (most likely) so it would not have touched your cash account. The Note Payable would have increased your Long-Term Liabilities (and short term for the portion due this year); but not income. If any interest expense was paid during the year, it would be applied to income. I hope I understand your question correctly. Good luck.
BEC – 89
REG – 89
AUD – 87December 20, 2018 at 5:32 pm #2123553yicao74Participant
Thank you guys. Merry ChristmasDecember 21, 2018 at 11:03 pm #2125140LLParticipant
I failed FAR in Q4 because of all the journal entries. So I really need some help with preparing journal entries. What are the journal entries you think I should know for the test? I know its better to understand them than memorize them but sometimes its just so hard to come up with the right journal entry. Is there any good ways to understand those journal entries? I am planning to take FAR again in late Jan or early Feb. Thank you!December 26, 2018 at 2:22 pm #2129428utpalParticipant
I am wondering if anyone can help me. I failed FAR twice with 37 each time. I have been out of school since 10 years. Even then, my major was MBA with Accounting Specialization. I am currently using Gleim, but I am finding the question too tough. I also feel that because I have been out of school so long, I no longer have the base understanding of the material. No matter which review course I take, they all cannot replace detailed learning of the material.
So, does anyone have recommendations on what I can do to increase my competency in FAR and ultimately my score. I have passed BEC, REG, and AUD at least once which makes me feel that I am competent to be a CPA.
Should I go back to school and attend classes for Intro, Intermediate, and Advance Financial Accounting or should I just buy the books and study them? Please let me know. Your suggestions will be greatly appreciated.
UtpalDecember 27, 2018 at 10:25 pm #2131273meantroll77Participant
I don't think you need to go back to school. If you have already passed other sections of the exam then you have the knowledge. I used Gleim also for FAR but like you said the questions are too tough. I needed something that broke down the topics so I purchased Wiley and finally passed FAR last month. I suggest studying with a different test bank.December 28, 2018 at 3:04 pm #2132230TypicalParticipant
Hey guys, just thought I would reach out with my own experience with FAR. I passed FAR December 19th on my first try! I was super happy that I passed being that now all I have left is REG. Anyway, I had quite the journey with FAR, I originally was scd. to take it at the end of October when I was hit by a car as I was crossing the street one night. Was really scary but thankfully I came out of it okay. So obviously that delayed my test and I ended up taking it on December 8th. I think the most important thing for me was to look over the mock exams ( I used Becker) and I would look at where I was weak and I would go through the lecture again and retry the multiple choice in that section. Another point to be made is that I consistently scored in the 60s on the mock exams and ended up with a 78 on the final exam so there is definitely a bump in score between the two in my opinion. If I can do it then anyone can. Just do not fool yourself and always study when you can. If you put in the time, the results will come.
Goodluck everyone!December 30, 2018 at 6:43 pm #2135230