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July 2, 2016 at 9:55 pm #203375
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July 4, 2016 at 4:59 pm #784868AnonymousInactive
@pracap I imagine you would use the premium-BIC to amortize since that is what you do for discount and they shouldn't be treated differently unless specifically stated somewhere. (so the amort is the difference between the 800k * coupon and the 825.5k * mkt)
Also I don't understand the solution to the following question:
Clark Co.'s advertising expense account had a balance of $146,000 at December 31, Year 1, before any necessary year-end adjustment relating to the following:
– Included in the $146,000 is the $15,000 cost of printing catalogs for a sales promotional campaign in January Year 2.
– Radio advertisements broadcast during December Year 1 were billed to Clark on January 2, Year 2. Clark paid the $9,000 invoice on January 11, Year 2.What amount should Clark report as advertising expense in its income statement for the year ended December 31, Year 1?
a.
$122,000
b.
$131,000
c.
$155,000
d.
$140,000The answer is d. I picked 131,000 because I just subtracted the 15000 and didn't add ad exp. for the radio broadcast since it was only billed in Jan of next year. Is it because I have to set up the expense and payable accounts immediately? Seems like a dumb question, but it would just help if someone could confirm.
July 4, 2016 at 6:53 pm #784869AnonymousInactiveFor the recent AICPA question, I just can't seem to get the date correctly to setup the calculation. Can any one advise on on how the answer is AT $11,666?
A company with a June 30 fiscal year end entered into a $3,000,000 construction project on April 1 to be completed on September 30. The cumulative construction-in-progress balances at April 30, May 31, and June 30 were $500,000, $800,000, and $1,500,000, respectively. The interest rate on company debt used to finance the construction project was 5% from April 1 through June 30 and 6% from July 1 through September 30. Assuming that the asset is placed into service on October 1, what amount of interest should be capitalized to the project on June 30?
$11,666 = Correct
$18,750
$75,000
$90,000Thanks
July 5, 2016 at 3:14 am #784870se7en.14ParticipantJuly 5, 2016 at 3:27 pm #784871CPYayParticipant@AdSa
You are correct.
EOY balance in Ad Expense is $146,000
$15,000 of this is related to a sales promotion for year 2. Since the associated revenues will be in year 2, the related expense will be in Year 2 – SUBTRACT
The $9,000 invoice received and paid in January is for radio broadcasts from Year 1, so that expense should be in year 1 (should've been accrued, I suppose). + ADD
Correct EOY balance should be $140,000 (146 – 15 + 9)
AUD - 92
BEC - 84
FAR - 89
REG - 84Mailed application! Hoping to be licensed by year-end!July 5, 2016 at 3:37 pm #784872CPYayParticipant@DLu
Each CIP balance has interested that applies. Thus:
Apr 30 – $500,000 * (.05/12) = 2083.33
May 31 – $800,000 * (.05/12) = 3333.33
Jun 30 – $1,500,000 * (.05/12) = 6250.00Cumulative interest through June 30 is $11,666.67.
AUD - 92
BEC - 84
FAR - 89
REG - 84Mailed application! Hoping to be licensed by year-end!July 5, 2016 at 10:17 pm #784873thebigguy1992ParticipantTown, Inc., is preparing its financial statements for the year ending December 31, 20X1. On December 1, 20X1, Town was awarded damages of $75,000 in a patent infringement suit it brought against a competitor. The defendant did not appeal the verdict, and payment was received in January 20X2, prior to the issuance of the financial statements. What is the reporting requirement?
why is the answer accrue and disclose on ninja MCQ? isn't it just disclose since it was a gain
BEC - 79
FAR - 62,73,76
AUD - 70, 88
REG - 83July 5, 2016 at 11:20 pm #784874CPYayParticipantThis isn't a matter of probability because Town was awarded the damages without uncertainty in X1 (an exact figure with no appeal/chance of change). All you're waiting for is payment, thus the requirement for accrual in X1.
AUD - 92
BEC - 84
FAR - 89
REG - 84Mailed application! Hoping to be licensed by year-end!July 6, 2016 at 1:27 am #784875mtaylo24ParticipantJuly 6, 2016 at 2:58 am #784876gigabyte2001ParticipantYou're ahead of me mtaylo24 – I'm working through cash flows.
AUD - 87
BEC - 78
FAR - 82
REG - 93.B - 11/11/16
A - 4/16/16 87!!
R - 2/17/17
F - 7/26/16 - Waiting for 8/23July 6, 2016 at 3:16 am #784877mtaylo24Participant^^^Keep at it gigabyte! I was fortunate to get a lot done at work since pretty much the whole office was empty.
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)July 6, 2016 at 3:36 am #784878TncincyParticipantI'm starting Far tonight (8/12)….I am going to be a lunatic when this whole process is over. I better make $250,000 immediately.
It begins with a 75
Been here too long as a cheerleader.....time to passIt begins with a 75
Been here too long as a cheerleader....ready to passJuly 6, 2016 at 4:53 am #784879CPA788Participant@mtaylo24 – I've been scanning signatures for folk that are in the same boat as me – as in, haven't passed an exam all year. I apologize for pointing it out, but I appreciate you posting it and I am dying for some encouragement right now. I'm taking FAR for the 3rd time later this month and I am just so bummed and demotivated. What has been keeping you productive with studies?
BEC - 74, 77 (Becker only)FAR - 72, 71, 78 (Becker+NINJA)
REG - 69, 59, 69, 72, 76 (Becker+a private tutor+NINJA+Gleim free trial+seriously anything else I could review)
AUD - 77 (Becker only)
CA candidate
BEC - 74, 77
FAR - 72, 71 (retake 7/29)
REG - 69
AUD - Q4 '16CA Candidate
July 6, 2016 at 11:03 am #784880mtaylo24Participant@CPA788, the last two added fuel to fire. I know you probably shouldn't add a 69 in the “I almost had it” category, but that last REG attempt really pissed me off, especially after receiving my score report, knowing I was comparable in sims and stronger/comparable in the tax areas. BLAW and the Fed Tax process really drug me down, and I felt robbed!
Same w/ BEC, I was worried about finance, cost and WC, was stronger in WC and cost, but COSO, IT, and Econ killed me. When I lose at something, I always thing that it's BS and a fluke (lol). I'm too stubborn to give up at this point, as I've done that before after trying in 2012/2013. I also feel like the world is against me, I've worked internal accounting for two different companies and never really felt like I had support from my upper management to finish (#i'llshowthem). I also feel like I've invested way too much of my own time and $ and I would love to reap my rewards for both.
Just keep at it!
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)July 6, 2016 at 1:48 pm #784881UghCPAzParticipantHi this is one of the 2016 AICPA released FAR questions
Park, Inc. acquired 100% of Gravel Co.'s net assets. On the acquisition date, Gravel's accounting records
reflected $50,000 of costs associated with in-process research and development activities. The fair value
of the in-process research and development activities was $400,000. Park's consolidated intangible
assets will increase by what amount, if any, as a result of the acquisition of the in-process research and
development activities?
A. $0
B. $50,000
C. $350,000
D. $400,000The answer is D. Does anyone know why it isn't C??
AUD - 99
BEC - 90
FAR - 96
REG - 90Just AUD left
July 6, 2016 at 3:23 pm #784882TncincyParticipantTo me the question is asking what will the assets increase by, not how much is research and development or the associated costs. I would have chose C as well because the records already reflect $50,000 spent on R&D so fmv 400,000 – 50,000 is 350,000.
It begins with a 75
Been here too long as a cheerleader.....time to passIt begins with a 75
Been here too long as a cheerleader....ready to pass -
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