FAR Study Group Q1 2017

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  • #1396734
    Spartans92
    Participant

    Wow Aren't I early for this Q.. haha. anyways does anyone have any good study tips with bonds? I watched the Demo video on ninja plus and Bob broke the topic down into an understandable way but then when I do becker's questions I dont even know where to begin… I dont got much time left and with 5 chaps to go Im frustrated… luckily govt and nfp won't take that long with the extended weekend/ holiday.

    I appreciate the help if anyone can give me some tips to make this topic “click.”

    Here's an example: On January 2, Year 1, West Co. issued 9% bonds in the amount of $500,000, which mature on January 2, Year 11. The bonds were issued for $469,500 to yield 10%. Interest is payable annually on December 31. West uses the effective interest method of amortizing bond discount. In its June 30, Year 1 balance sheet, what amount should West report as bonds payable?

    a.
    $500,000
    b.
    $471,025
    c.
    $470,475
    d.
    $469,500

    based on process of elimination I know A and D cannot be the answer. But I just dont know how to approach. Thanks guys!

    BEC - 76
    REG- 67, 85
    AUD-63, 74, 80!!
    FAR-65, 62, 57, 79

    3 down 1 more to go. BEC is on the Line 🙁

    BEC- PASS

    #1396761
    A1lessio
    Participant

    Spartans92- I also struggled with bonds and pretty much every other chapter. For bonds I kept re-watching the Becker lectures on my commute and writing out the section seems to really be helping me out. I went from scoring 30-40% on mcqs to 70-75%. For bonds make sure you fully understand discounts/ premium and start from there.

    The first thing I noticed is that it was issued at a discount and we are using the effective interest method. Since your interest rate (9%) is lower than the market(10%) you have to sell it for cheaper because an investor buying the bonds will want the higher market rate. Notice west co is only receiving $469,500.

    with a discount we add back the unamortized discounts to arrive at the face of the bond.

    Calculate the interest:
    Step 1: 469,500(bond issue price) x 10%(market rate) = 46,950
    Step 2: 500,000 x 9%(stated rate) = 45,000

    46,950-45,000 = 1,950. Take half since it's the June 30th B/S date. We are left with $975. Since it's a discount we add the $975 back to the 469,500 to arrive at the face.
    (c) 470,475

    AUD - 86
    BEC - 70
    FAR - 78
    REG - 84
    People who subject themselves to the strictest discipline, who give up certain pleasurable things in order to obtain a goal are the happiest of men.

    AUD (08/02/2016)

    #1396793
    Anonymous
    Inactive

    Mi amor joining the wagon!
    I'm a repeater. I hate to join this thread (but I got no choice!) because I already passed FAR in 2014, bummer!
    I must admit, when I began my repeat study in AUD in September, I kept looking back and feeling so bitter to ever repeat a section that I already passed. I scored a 75 in 2013 and I was scared that I would not have much luck this time and might fail miserably. But when I passed AUD again with a comfortable margin, I told myself, it wasn't that too bad to repeat an expired pass.

    Anyway guys, let's all do it together in this forum. We will conquer this beast!

    @Spartan, check this bond thread I created almost 3 years ago. Hope this helps. I am also going to get some refresher of this info because I totally forgot FAR after struggling so bad with REG and BEC alternately.

    FAR – Bonds, Bonds, Bonds, and Bonds

    #1396829
    mckan514w
    Participant

    Ah its like homecoming in here 🙁 good to see you Spartan, A1 and AmorD…. good luck to all of us!

    And they ask me why I drink

    BEC 71, 82
    AUD 75
    REG 75
    FAR 61, 69, 83

    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

    #1396835
    mtaylo24
    Participant

    I feel like I'm in a Q1 Summer school 😎

    CPA (2017)

    REG:  75

    BEC:  76

    FAR:  77

    AUD: 78

     

    CMA (2019)

    P1: 380

    P2: 360

    AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
    REG - 55 (2/16) 69 (5/16) Retake(8/16)
    BEC - 71(5/16) Retake (9/16)
    FAR - (8/16)

    #1396886
    A1lessio
    Participant

    mtaylo24 – how will you tackle FAR and BEC? Do you think we can get it done in Q1?

    AUD - 86
    BEC - 70
    FAR - 78
    REG - 84
    People who subject themselves to the strictest discipline, who give up certain pleasurable things in order to obtain a goal are the happiest of men.

    AUD (08/02/2016)

    #1396899
    sallybreann
    Participant

    I take FAR January 9th. Started Studying November 10th and made it through the Becker material this weekend. I have never taken FAR before so I’m not sure if my study plan will work. But I plan to do 20 Non-Profit/Governmental MCQ’s each day because I had such a hard time learning it and don’t want to forget. Then will build on that and start reviewing other material (Starting right away with leases/bonds) and will re-review material for half of my study time each day and start review on a new topic the next. If anyone else is using Becker/NINJA MCQ’s and wants to swap study tips I’d love to hear what others are doing.

    FAR - 82

    BEC - 74, 82

    AUD - 78

    REG - 80

    #1396943
    mtaylo24
    Participant

    @A1lessio, I really hope I can get them both done this window. I'm just glad that I'm only focusing on 2 this window, as I did 3 in both Q3 and Q4. I am still brainstorming on the timing, but as far as the strategy, I will primarily work with Gleim, then maybe switch to Ninja as time permits.

    Weeks 1 – 3(or 4 or 5): Using Gleim, Read a study unit in its entirety, watch audiovisual lecture in its entirety , work all of the chapter MCQs start to finish. Re-work all questions for that chapter until I score at least 80%, then move on to the next chapter. Gleim has 20 subunits (but I'm attacking them based on where I think I need improvement, so I did Ch 18 (Gov't), Ch 15 (Business Combos), Ch 10 (Pensions/Benefits), and today I am working on Ch 9 (Intangibles/Franchise/Software/Prepayments). Sundays will be a refresher, a cumulative study day. This past Saturday, I dropped all of the JEs from the audiovisual lectures into a spreadsheet and converted to pdf. I plan to review these JEs often throughout the week.

    Final 3 weeks (final review): Ninja MCQ, Gleim sims, re-reading of the text.

    I am still working on the timing and squeezing BEC in, but I think I want to do FAR first since I'm really not connecting with this one.

    CPA (2017)

    REG:  75

    BEC:  76

    FAR:  77

    AUD: 78

     

    CMA (2019)

    P1: 380

    P2: 360

    AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
    REG - 55 (2/16) 69 (5/16) Retake(8/16)
    BEC - 71(5/16) Retake (9/16)
    FAR - (8/16)

    #1396956
    Anonymous
    Inactive

    Another way to approach this bond problem is to do the necessary journal entry. For me I always start from interest payable or in this case ‘accrued interest payable:

    Accrued interest payable 6/12 x .09 x 500,000 = 22,500 (this represents the actual cash that will be paid)

    Interest expense 6/12 x 469,500 (carrying amount) x .1 = 23,475

    Discount amortization (to the balance sheet) is the difference between these two numbers – 975

    Last step is to credit the bond carrying amount 469,500 by the 975 equaling 470,475

    Also, need to remember:

    Yield > Stated rate = Discount

    Yield < Stated rate = Premium

    #1396971
    Anonymous
    Inactive

    On topic: just did simulation 17 (Bonds) and scored horribly. The problem involved an investor buying a bond rather than a debtor issuing one.

    Lesson learned (according to Ninja): if you are investing in bonds then there is not a separate bond premium or discount account, it is included in the bond investment account.

    #1397316
    Spartans92
    Participant

    So it has been a while since I last took FAR. Are the computations that long like Becker. I just did 1 question related to pension calculating the periodic pension cost and it took me 10 mins. Heres the question.. I got it right but its very time consuming.
    Big Books, Inc. has the following information related to its defined benefit pension plan:

    December 31, Year 6:

    Projected benefit obligation

    $1,500,000

    Fair value of plan assets

    1,400,000

    Unrecognized prior service cost

    200,000

    Unrecognized net transition asset

    60,000

    December 31, Year 7:

    Projected benefit obligation

    $1,740,000

    Fair value of plan assets

    1,670,000

    Service cost

    220,000

    Assumptions:

    Discount rate

    6%

    Expected return on plan assets

    8%

    Big Books makes an annual pension plan contribution of $200,000. The company's employees had an average remaining service life of 20 years on 12/31/Year 6. The company paid benefits of $70,000 in Year 7 and expects to pay benefits totaling $170,000 to retired employees in Year 8. Big Books has an effective tax rate of 30%. The actual return on plan assets was 10%. What would Big Books report as U.S. GAAP net periodic pension cost on its December 31, Year 7, income statement?

    BEC - 76
    REG- 67, 85
    AUD-63, 74, 80!!
    FAR-65, 62, 57, 79

    3 down 1 more to go. BEC is on the Line 🙁

    BEC- PASS

    #1397339
    Stilgoin
    Participant

    Heyyyy. I swear – restudying seems so much harder than the first time. I am having trouble focusing on the work. I have time- I am lacking the will to get it done. Do I need a new test bank? The highest I have gotten on NINJA trending before an exam is 74. Should I stick with it or switch? Thoughts?

    Stilgoin, CPA

    There are enough critics. Be an encourager

    B | 62, 78
    A | 73, 67, 79
    R | 82
    F | 59, 59, Waiting

    Ethics | 93

    "Success is not final, failure is not fatal: it is the courage to continue that counts."
    ~Winston Churchill

    “In a world full of critics, be an encourager."

    #1397354
    mckan514w
    Participant

    when are you sitting Stilgoin? I ended up getting a new test bank- if for no other reason then I at least feel like I am not spinning my wheels with the same old stuff- call it a mental adjustment if you will. My advice would be if you think you have time to get the benefit of a new testbank do it- but if you are sitting early January then I would stick with the same old same old so you don't “muddle the brain” if you will 🙂 GOOD LUCK!

    And they ask me why I drink

    BEC 71, 82
    AUD 75
    REG 75
    FAR 61, 69, 83

    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

    #1397366
    mtaylo24
    Participant

    @stilgoin I vote to get a new TB. FOR FAR and BEC Ninja is a good final review tool, but isn't the best to learn on imho. I do however feel that the Ninja questions are completely necessary. Wiley is 150 and Gleim is 250, I think that you may be able to demo them before you buy. I'm personally going to save Ninja for my final review after I am feeling decent w/ Gleim.

    CPA (2017)

    REG:  75

    BEC:  76

    FAR:  77

    AUD: 78

     

    CMA (2019)

    P1: 380

    P2: 360

    AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
    REG - 55 (2/16) 69 (5/16) Retake(8/16)
    BEC - 71(5/16) Retake (9/16)
    FAR - (8/16)

    #1397367
    Stilgoin
    Participant

    Jan 18- could push to Jan 30. I lose REG 31st 🙁 I think I am sticking with NINJA- I have never done MCQs to the extent of memorizing them; I always used other methods along with MCQs. I’m up from 59 to 74. I am still insecure, but I just need this one last push! Thanks- good luck to you too.

    Stilgoin, CPA

    There are enough critics. Be an encourager

    B | 62, 78
    A | 73, 67, 79
    R | 82
    F | 59, 59, Waiting

    Ethics | 93

    "Success is not final, failure is not fatal: it is the courage to continue that counts."
    ~Winston Churchill

    “In a world full of critics, be an encourager."

Viewing 15 replies - 1 through 15 (of 2,502 total)
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