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  • TA的每日心情
    慵懒
    2018-10-12 14:22
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    发表于 2016-10-24 10:08:46 905 浏览 7 回复

    Q4FAR-simulation

    Research                                                                                               
    1. Diluted EPS is affected by contract
    260-10-45-45
    2. Use the intrinsic value method to record stock option compensation
    718-10-30-22
    3. Translation, foreign currency average approximation
    830-10-55-10
    4. An American company wants to acquire a foreign subsidiary, when would the foreign transaction gain or loss not reported in net income
    830-30-45-12u
    5. NFP variance power
    958-605-25-26
           6.   An energy company’s internal price is heavily regulated, external price is    also relatively regulated, under what circumstances could the company eliminate profit in the transactions
    980-810-45-1
    Financial 1---
    Type: Adjusting JEs---Accounting Changes & Errors
    Information:
    a. Change of Estimate---Prospectively
    Depreciation: DDB>>> SL (Changed the policy in Y3, Life= 5 Years)
    JE to record change of depreciation life
    DR Depreciation Expense= New Depreciation Amount
    CR     AD
    b. Error---Restate
    1) Recorded an equipment bought as an expense in Y1 by error
    DR Equipment @ Historical Cost
    DR Depreciation @ New Depreciation Cost per year
    CR     AD @ Old AD + New Depreciatil8
    on Cost per year
    CR     RE @ Historical Cost – Old AD                           
    2) Depreciation: Recorded the 10 months expense as one year expense by mistake??
    DR AD @ two months depreciation
    CR     Depreciation Expense
    c. Repairs/Improve and Replace---Expense/Capitalized/Reduce AD
    1) Bought something in Y2, maintenance in Y3---Repairs???
    If ordinary expense:
    JE to record ordinary repair expense
    DR Maintenance Expense
    If Extraordinary:
    a. If increase life---Reduce AD
    JE to record improvement/replacement- increase life
    DR Accumulated Depreciation (increase NBV) @??
    CR     Cash/AP
                        b. If increase usefulness---Capitalized
    JE to record improvement/replacement-usefulness
    DR Asset @ cost to improve or replace
    CR     Cash/AP
    2) Equipment change of engine with cost of $ 65,000, extending the original life by 5 years, the original life is 12 years, cost= $120,000---Improvement/Replacement
    JE to record improvement/replacement- increase life
    DR Accumulated Depreciation (increase NBV)
    CR     Cash/AP
    Question: Make adjusting JEs in Y3
    Analysis:
    CR     Ca/sh/AP
    Financial 2---
    Type: Fill in numbers/ Make JEs---Franchise
    Information:
    Version1
    a. Obtained the franchise by cash & note
    b. The franchisor offers some service: helping with developing customers…
    c. The service lasts 2 years
    Version 2:
    a. Fill in numbers in a table
    b. Unearned revenue/earned revenue/ AR @ different time
    Question:
    Version1: Make JEs
    Version 2: Fill in numbers
    Analysis:
    Initial Franchise Fee @ substantially performed
    JE to record receiving the initial franchise fee by cash & notes
    DR Cash= Cash
    DR NR= Total initial franchise fee - cash
    CR     Discount on NR (contra asset)= NR- PV (NR)
    CR     Unearned Franchise Fee Revenue= Plug
    JE to record paying the initial franchise fee by cash & note
    DR Franchise= Plug
    DR Discount on NP (contra liability)= NP- PV (NP)
    CR     Cash= cash
    CR     NP= Total initial franchise fee – cash
    Continuing Franchise Fee (ongoing services provided by the franchisor)
    E.G. Royalty/training/promotion/legal assistance---Expensed
    JE for the Collection and Recognizing of Earned Royalties- Advanced
    DR Cash
    CR     Unearned Royalty
    DR Unearned Royalty
    CR     Earned Royalty
    JE for the Payment of Royalties
    DR Royalty Expense
    CR     Cash
    Royalty Collections (Remittance)
    + Reduction in Unearned Royalties
    - Reductions in Royalties Receivable
    Year 2 Royalty Income
    Type: Intangible Asset
    Information:
    a. Intangible assets/asset under construction/ R & D?...
    Question: When to expense/capitalize?
    Analysis:
    Intangible Assets
    a. Purchased Intangible Assets @ Cost + Legal fee + Registration fee
    Capitalized
    b. Internally Developed Intangible Asset
    GAAP: Expense
    Exception: Capitalize
    1) Legal fees to a successful defense of the asset
    2) Other costs to secure the asset
    3) Registration/consulting fee
    4) Design costs (E.G. of a trademark)
    IFRS
    Internally developed intangible asset---Research---Expense
    Internally developed intangible asset ---Development---May Capitalize:
    1) Technological feasibility has been established
    2) The entity intends to complete
    3) The entity has the ability to use/sell it
    4) Adequate resources are available to complete/use/sell it
    5) It will generate future economic benefits
    Franchise Accounting
    a. Initial franchise fee---Capitalize
    b. Continuing franchise fee--- Expense
    Start-up Costs---Expense
    Anything related to “New” + one time expense
    Goodwill--- Test at least annually
    Exception: Maintaining/developing/restoring/internal goodwill---Expense
    R & D
    GAAP: Expense
    Exception:
    1) Materials/equipment/facilities have alternate future use--- Capitalize
    2) R&D costs of any nature undertaken on behalf of others under a contractual arrangement (buyer---expense as R & D; seller--- expense as selling cost)
    IFRS:
    Research--- Expense
    Development--- MAY be Capitalize
    Not R & D:
    1) Routine periodic design changes to old products
    2) Marketing research
    3) Quality control testing
    4) Reformulation of a chemical compound
    Computer Software Development Cost
    a. Sold/leased/licensed
    GAAP:
    Until technological feasibility---Expense
    (Program design, planning/coding/testing)
    After technological feasibility---Capitalize
    (Producing product masters/additional coding/additional testing)
    Technological feasibility:
    1) A detailed program design
    2) Completion of a working model
    b. Internal Use Only
    GAAP
    Until preliminary project state/training/maintenance--- Expense
    After preliminary project state/upgrades/enhancement---Capitalize
    IFRS: As an internally generated intangibles (R-expensed; D-may be capitalize)
    Financial 3---
    Type: Fill out a table-Business Combination-Consolidation Worksheet
    Information:
    a. Two intercompany sale to be eliminated
    1) Intercompany Inventory Sale: Parent sells to the subsidiary
    Original Cost=$40, Selling Price= $60 (Unpaid, held by buyer till the end)
    Given: % of the inventory sold to the third party, ask for the value on hand
    2) Gain on Sale of Equipment: Subsidiary sells to the parent
    Original Cost=$120, Selling Price=$150, Remaining life= 3 years
    Given: Sales/Profit Margin
    b. CAR IN BIG
    A lot of useless information
    Question: Make Elimination Entry: Sales, COGS, CARINBIG, Depreciation
    Analysis:
    a. Inventory (Remember to eliminate AR and AP)     F3-47
    1) A sold inventory to B
    JE to record the sale by A
    DR AR 60
    CR     Intercompany Sales  60
    DR Intercompany COGS  40
    CR     Inventory                              40
    JE to record the purchase by B
    DR Inventory  60
    CR     AP                   60
    2) Elimination JE
          JE to eliminate intercompany sale      
                         DR Intercompany sales- A     60
                       CR     Intercompany COGS-A          40
                       CR     COGS-B= Inter profit on sale x (COGS/Sale Price)               %*20
                       CR     Inventory-B= Inter profit x (End Inventory/Sale Price)   (1-%)*20
                       DR AP= inter profit on sale= Sale Price- Cost
                       CR     AR
    COGS= Begin Inventory+ Purchase- End Inventory
          
    b. Equipment
    1) B sold equipment to A
    JE to record the sale on B’ s book
    DR Cash= sale price
    DR Accumulated depreciation
    CR     Fixed asset= Original Cost
    CR     Intercompany gain on sale of fixed asset= Sale Price- BV
                         JE to record the purchase on A’s book
    DR Fixed asset= sale price
    CR     Cash
                  2) Year-end Adjustment
    JE to record the depreciation on A’s book
    DR Depreciation expense= sale price/ remaining life
    CR     Accumulated depreciation
    JE to eliminate Gain & adjust the asset and AD to their original balance
    DR Intercompany Gain on sale of fixed asset= reverse the above
    CR     Fixed asset= Plug                                                           
    CR     Accumulated depreciation= old Depreciation
    JE to eliminate the excess depreciation
    DR Accumulated depreciation= (New depreciation- old depr)/YR
    CR     Depreciation expense
                  3) Subsequent Years
    JE to adjust fixed asset??
    DR RE= Intercompany Gain- Excess depreciation
    CR     Fixed asset=Plug
    CR     Accumulated depreciation=Original AD- Excess depreciation
    JE to adjust depreciation
    DR Accumulated depreciation= New depreciation- old depreciation
    CR     Depreciation expense
    c. CAR IN BIG
           JE to record CAR-IN-BIG
    DR CS- subsidiary = SAME ALL Year
    DR APIC- subsidiary = SAME ALL Year
    DR RE- subsidiary = Squeeze= Beg RE+NI-Div.=End RE
    CR     Investment in subsidiary = FV (sub) x CI%= Acquisition Cost
    CR     Non-controlling interest= FV (sub) x NCI%
    DR B/S adjustment to FV= FV (sub NA) – BV (sub NA)
    DR Identifiable intangible assets @FV
    DR Goodwill/Gain (CR)= FV (sub)- FV (sub’s NA)
    Type: Make JEs---Marketable--d-Cost Method---AFS
    Information:
    a. Company A bought #10,000 stocks of Company B for $200,000.
    Company B has #300,000 shares outstanding
    b. Interest rate of stock= 10%
    c. #Beginning= 10,000 shares >> Ending=11,000 shares
    d. July: Declaration of cash dividend
    August 15th: Cash dividend payable
    October: Declaration of stock dividend
    Year-end: Price goes up
    e. Implication: AFS
    Question:
    Make 4 JEs for:
    a. Stock acquired date
    b. Cash dividend payable date
    c. Stock dividend declaration date
    d. Year end adjustment
    Analysis:
    a. Stock acquired date
    JE to record all costs of acquisition (FV given + legal fees)
    DR Investment in investee= Original cost= FV given+ legal fee
    CR     Cash
    b. Cash dividend payable date
                         JE to record the cost method- Dividend Income
                         DR Cash= Cash Dividend x CI%
                         CR      Dividend Income (Cash only, NO stock dividend/NI!)
    c. Stock dividend declaration date
    NO JE!!
    d. Year end: remember to calculate the OCI according to IR
    JE to record unrealized gain and adjust to FV at year-end
    DR Investment in investee (or valuation account)
    CR     Unrealized holding gains
    JE to record unrealized loss and adjust to FV at year-end
    DR Unrealized holding losses
    CR     Investment in investee (or valuation account)
    Type: Fill out a table & Make JEs---Marketable Securities
    Information:
    Version1--Trading
    a. Trading security (FV option)- unrealized holding gains= $20,000
    b. Pension loss= $(10,000)
    Version 2---AFS & Trading
    a. AFS (the company did not choose FV option) if choose fair value option, the unrealized G/L recorded in earnings rather than OCI. If the FV option has not been used, then general rule, record in OCI. From Chp 10 and Chp3.   Cost= $10,000, #5,000 shares
    b. Given Y1 ending AOCI, including:
    Unrealized gain =$30,000
    Net pension loss= $100,000
    c. Y2 Activities
    1) Sold #2,500 shares for $10,000
    2) Remaining revalued to $7,000
    3) 06/01/Y2: Bought trading securities, cost=$XXX, year end BV>FV
    4) Pension: Actual gain – expected gain = $3,000 (Not sure +/-)
    Amortized loss= $800
    d. 12/31/Y2: FV of AFS is reduced
            FV of trading securities is given       
    Question:
    a. Calculate the changes of NI & OCI
    b. Make JEs for:
    1) Issuance of stock
    2) Purchasing stocks
    3) Selling stocks
    4) Revaluation: unrealized gains
    c. Make JE for activities in YR 2
    Analysis:
    From
    To
    Transfer Acc. For
    Unrealized G/L
    Trading
    Any Other
    FV
    No Adjustment- already in I/S
    Any Other
    Trading
    FV
    Recognized in I/S-current earnings
    HTM
    AFS
    FV
    Recognized in OCI
    AFS
    HTM
    FV
    Amortize G/L from OCI with any bond premium/discount amortization
    Trading AFS- Change in FV > Unrealized G/L
    1. JE for Unrealized G/L-Trading Securities-Trading
    DR Valuation account (FV adjustment)
    CR     Unrealized Gain on trading securities/AFS
    DR Unrealized loss on trading securities/AFS
    CR     Valuation account (FV adjustment)
    Trading and AFS-Sale of Security
    JE for Sale of Trading
    DR Cash
    CR     Trading Securities
    CR     Realized Gain on trading securities= (Original cost+ Un G/L) vs. Sale Price
    DR Cash
    DR Realized Loss on trading securities= (Original cost+ Un G/L) vs. Sale Price
    CR     Trading Securities
    JE for Sale of AFS
    DR Cash
    DR Unrealized Gain on AFS security
    CR     AFS security
    CR     Realized Gain on AFS=(Original Cost) vs. (Selling Price)
    DR Cash
    DR Realized Loss on AFS security=(Original Cost) vs. (Selling Price)
    CR     AFS security
    CR     Unrealized Loss on AFS
    Type: Fill out a table---IFRS---Marketable securities---Changes in values
    Information:
    Version 1
    a. Under IFRS + Cost Methods
    b. Several transactions
    Version 2
    a. Under IFRS + Equity Method (80% ownership)
    b. Given 3 tables (including items called “push down”)
    No FV value option
    Question:
    Version 1
    a. Expense for this year
    b. Value of assets at year end  
    Version 2
    a. What if no FV option
    Analysis:
    Version 2:
    With FV option: G/L in I/S
    Without FV option: G/L (trading-I/S, ASF-OCI)
    Type: Equity method
    Information:
    Question: Make 4 JEs (pay dividend/earnings/…)
    Analysis:
    [size=12.0000pt]
    Cost Method
    No Significant Influence
    < 20%
    [size=12.0000pt]
    Equity Method
    Significant Influence
    20% - 50%
    B/S
    Purchase Price
    DR Investment in investee
    CR     Cash= FV given+ Legal
    Purchase Price
    DR Investment in investee
    CR     Cash= FV given + Legal
    FV changes
    ONLY
    No adjustment for NI
    DR Investment in investee
    CR     Unrealized holding gains
    +Investee Income
    DR Investment in investee= NI x CI%
    CR     Equity in earnings
    DR Unrealized holding loss
    CR     Investment in investee
    -Amortize FV > NBV
    Difference%/#
    DR Equity in earnings=(FV(NA)-BV(NA))/#
    CR     Investment in investee
    [size=12.0000pt]
    -Investee Dividends
    DR Cash= Cash Dividend x CI%
    CR     Investment in investee
    I/S
    Liquidation Dividends
    DR Cash= Cash Dividend x CI%
    CR     Investment in investee= Plug
    CR     Dividend Income= RE x CI%
    +Investee Income
    DR Investment in investee
    CR     Equity in earnings
    Investee Dividends
    (Cash ONLY)
    DR Cash= Cash Dividend x CI%
    CR     Dividend Income
    -Amortize FV > NBV
    DR Equity in earnings
    CR     Investment in investee
    Goodwill
    [size=12.0000pt]
    1. Not amortized
    2. No impaired test
    Financial 4---
    Type: Land and Building JEs
    Information:
    a. The company bought a land and constructed a building on the land
    b. The company issue bonds to pay the expense
    c. Four major types of assets: land/building/equipment/fixture
    Life of the equipment and furniture is 4 years
    Life of the building is 40 years
    Each include related costs, i.e. Insurance/demolishing the old building/sell the old building/permission fees of building restructure/installation fee of the furniture/land title fee/
    d. Activities:
    1) Land improvement
    2) Cost to prepare the land
    3) Repair to building
    Question:
    JE for the half-year and the last quarter’s depreciation expense/accumulated depreciation/land/building/G/land improvement…
    Analysis:
    Put all the amounts can be capitalized into one JE since the space is not enough
    Dr.
      Land
      Building
      Equip
      Fixture
      Discount on BP
      Interest expense (on the note)
      Depreciation expense
    Cr.  
       Cash (note is note enough to cover the cost)
       BP
       Premium on BP
       Accumulated depreciation
    Topic: Land and Building
    Information:
    a. A company bought a land and a building at the same time
    FV land= 2M; FV Building= 3M; Total Purchase Price= 4.5M (% FV)
    b. Subsequent costs incurred: @ five different time
    1) Land improvement
    2) Improvement inside the building
    3) Cost to prepare the land
    4) Repair to building
    5) Parking lot
    6) Garage cost (added to the land)
    Question:
    Calculate the half-year and the Q4’s depreciation expense/AD/CV of land& build
    Analysis:
    Do not depreciate the land!
    Cost of equipment= (Invoice- Discount)+ Freight in/insurance+ Installation/testing+ Tax+ Interest
    Land cost= Purchase price+ Broker’s commission+ Title/recording fees+ Legal fees+ draining of swamps+ Cleaning of brush and trees+ Site development+ Existing obligation+ Razing- Proceeds from sale
    Land Improvement= Fence+ Water system+ Sidewalk+ Paving+ Landscaping+ Light
    Cost of buildings= Purchase+ Repairs+ Alterations/Improvement+ Architect+ Interest
    Depreciation expense
    Accumulated depreciation
    Maintenance and repair fee
    Building, Land, Land Improvement
    gain
    Loss
    land improvement一共花了35,000
    building里的Air condition system坏了。花了$28,000修,其中$2,000是filer的费用
    换了楼里的窗户,花了$40,000, cost是$25,000.这个窗户对楼有improvement
    Type: Make JEs in a Table---PPE Depreciation
    Information:
    a. All equipment over $500 used half-year convention method SL for depreciation.
    Tab1: Table equipment life=4 years. The rest information is distraction.
    Tab2: Invoice for 4/1/Y1 purchase
                Invoice for 1/1/Y3 new purchase after disposal
    4/1/Y1: Bought equipment, received on 5/1/01. In the other tab 1st invoice shows details: price $380,000. FOB-destination.
                     The equipment is disposed on 12/31/02.
    1/1/Y3: Bought a new equipment to replace. Invoice cost $360,000
    Question:
    Analysis:
    A/R
    A/P
    Depreciation
    AD
    Maintenance
    Equipment
    4/1/01
    0
    0
    0
    0
    0
    0
    12/31/01
    0
    380,000
    47,500
    47,500
    0
    380,000
    12/31/02
    0
    0
    95,000
    0
    0
    0
    1/1/03
    0
    360,000
    0
    0
    0
    360,000
    12/31/03
    0
    0
    45,000
    45,000
    0
    360,000
    Type: Fill out tables---Inventory LCM
    Information:
    a. A company has 4 kinds of inventory
    b. FIFO
    c. Using LCM to value the inventory

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  • TA的每日心情
    慵懒
    2018-10-12 14:22
  • 签到天数: 2 天

    [LV.1]初来乍到

    版主

    Rank: 7Rank: 7Rank: 7

    积分
    5146

    120

    主题

    880

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    5146

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     楼主| 发表于 2016-10-24 10:09:14
    d.Given: replacement cost/ selling price/normal profit/commission of sales is 5%
    Question: Fill out 2 tables
    Table 1: Market Unit price
    Table 2: Ending inventory
    Analysis:
    Market = Median of Replacement Cost
    Marketing Ceiling= NRV= Selling Price- Cost to complete & dispose
    Market Floor= NRV- Normal Profit Margin[不减commission of sales吗]

    Type: Straight Line Depreciation
    Information:
    Column 1: Y2 depreciation amount
    Column 2: Ending balance of Y2

    Situations:
    a.Software
    b.R & D
    c.Asset
    d.New improvement cost for an existing item
    e.Interest
    f.…
    Question:
    a.Calculate the depreciation expense for Y2 under those situations
    b.Get the CV of each asset
    Analysis:

    Type: Inventory Reconciliation
    Information:
    a.Ship to customer: FOB
    b.Suppliers ship to the company: FOB
    c.Given: Physical count of inventory and the amount on the Book
    d.Events:
    1)Directly ship from vendor to customer
    2)Goods in transit
    3)Goods at the cosigned site
    Question: Adjust the inventory
    Analysis:

    Type: Bank Reconciliation--- Don’t waste the time on this question  
    Information:
    Question:
    Analysis:


    Financial 5---
    Type: Make JEs---Sale Lease Back
    Information:
    a.A sold a cargo ship to B for $7,500,000 (FV), and leased it back from B
    b.Lease payment is made annually on 1/1 for 10 years (due!!)
    c.Annual lease payment= $1,182,162, PV (lease payment)= XX
    d.IR= 12%
    Question: Write JEs for B (buyer / lessor)
    a.01/01/Y1: JE for the sale of cargo ship
    b.01/01/Y1: JE for the lease of cargo ship
    c.01/01/Y1: Receiving rental income
    d.12/31/Y1: Receiving interest income
    Analysis:
    Sale Lease Back Accounting by Purchaser-lessor
    1.Just as a purchase
    2.Operating Lease---Operating Lease
    3.Capital Lease---Direct Financing Lease
            If Direct Financing Lease
    01/01/Y1: JE for the sale of cargo ship
            DR Asset 7,500,000
    CR     Cash             7,500,000

    01/01/Y1: JE for the lease of cargo ship
            DR Lease Payments Receivable (1)
    CR     Unearned Interest Revenue (3)
    CR     Asset
    01/01/Y1: Receiving rental income
            DR Cash/rent receivable
    CR     Rental income[為什麼不是 Lease receivable?]=Rentals+ Bonus Amortization- Depr.

    12/31/Y1: Receiving interest income
            DR Cash/Interest Receivable
    CR     Interest Income (4)
    Formulas for Direct Financing Lessor:
    1. Gross Investment= Lease Receivables= MLP + Unguaranteed Residual Value
    = (Periodic payments+ bargain purchase option+ guaranteed residual value)+ UN residual value
    2. Net Investment= Gross Investment x PV @ IR implicit in the lease
    3. Unearned Interest Revenue= Gross Investment- Net Investment
    (Contra-lease receivables)
    4. Interest Income= CV of Lease Obligation * EIR

    Type: Fill out a table---Capital Lease
    Information:
    a.Lease an equipment:
    FV (equipment)= $500,000;
    Lease term= 5 years. Useful life= 6 years>> Capital Lease
    Annual year-end payment= $112,500 (executor cost = $ 25,000),
    IR= 5%;
    Guaranteed residual value= $10,000[ADD TO THE LEASE LIABILITY?][_标为已解决_][_已重新提出_][_标为已解决_][_已重新提出_][PV of guaranteed residual value is added to the minimum lease pmt obligation]
    b.Given a table of interest:
    First row: Lease liability, asset
    Second row: Payment, interest expense, BV (asset)
    c.Given an index table: select the appropriate index to calculate interest expense/payment/CV >> Use ordinary annuity
    Question:
    a.Calculate the interest expense for Y1 and Y2
    b.Principle deduction= Periodic Payment – CV (Lease) x EIR
    c.Depreciation
    d.CV (equipment)
    Analysis:
    Notice that the executor cost should be deducted from the lease liability (asset).
    The interest expense should be based on the lease liability after the deduction.
    BV asset= depreciation base
    Capitalized Amount
    The lessee records the lease as an ASSET @ LOWER of:
    1)FV @ inception of the lease
    2)Cost PV (MLP)-Capitalized
    a)Include (all payments that the lessee is obligated)
    i)PV (Periodic payments)
    ii)PV (Required Bargain purchase option)
    iii)PV (Guaranteed residual value)
    When calculate the PV (MLP), uses the @LOWER of:
    1)Rate implicit in the lease (if known)
    2)Lessee’s incremental borrowing rate
    (Rate available in the market to the lessee, NOT prime)
    Depreciation
    1.Depreciation Method; Usually SL
    Depreciation Expense= (Capitalized asset- Salvage value)/periods of benefit
    2.Period of Benefit (Depreciable Life)-GAAP
    a)O/W: Economic life
    b)N/S: Lease Term
    Example: Periodic payment due on Jan 1
    1. JE- Jan 1, Year 1
            JE to record the lease under capital/finance lease
            DR Leased equipment under capital/finance lease= PV (MLP)/FV
            CR     Obligation under capital/finance lease

            JE to record the first payment at lease inception
            DR Obligation under capital/finance lease= periodic payment
            CR     Cash

    2. JE- Dec 31, Year 1
            JE to accrue interest expense and liability
            DR Interest Expense= CV of lease x EIR
            CR     Interest Payable             

            JE to depreciate the asset over the ten-year lease life
            DR Depreciation Expense= PV (MLP) or FV/#Periods
            CR     Accumulated Depreciation- leased asset

    3. JE- Jan 1, Year 2
            JE to record the lease payment
            DR Interest Payable= CV of lease x EIR
            DR Obligation under capital/finance lease= Reduction of lease liability
            CR     Cash= Periodic payment

    Type: Operating Lease
    Information:
    a.A company is going to rent a headquarters (operating lease, 7 years)
    b.The first 6 months is for free
    c.The monthly payment is $2,000 for the first 5 years
    d.The monthly payment becomes $3,600 for the last 2 years[SEE F5-7]
            Adjustments        Balance after adjustments
    Sales XX                XX
    …                …
    Rent XX                XX
    Question:
    Analysis:


    12. Type: Bond
    Information:
    a. Purchased 2 bonds and repurchased 1 PS

    Question:
    a.JEs to record the purchase
    b.3 separate JEs set to adjust each of the purchase at year-end [ANYONE COULD REF THIS TO RELATED PAGES?]
    Analysis:

    Financial 6---
    None

    Chapter 7---
    Type: Fill out a table--- from cash basis to accrual basis ???[是的,是这个题目][给了完整的一个财务报表,从cash转到accrual]
    Information:
    a.Beginning CA/CL
    b.Ending CA/CL
    c.CA include Y1 & Y2: inventory, AR, AP, Sales [题目里说这些信息是来自于accrual basis的]
    Question: Reconcile the cash balance
    Analysis:
    Accounts        Cash Basis        Debit        Credit        Accrual Basis
    Cash                                    
    AR                                    
    AP                               
    Unearned Revenue                               
    Inventory                                    
    Liability                                    
    RE                                    
    Sales-Revenue[这两个有要你填东西]                                    
    Beginning Inventory                                    
    Purchases                                    
    Ending Inventory                                    
    Cash Balance                                    




    14. Type: Fill out a table--- Direct method of statement of CF
    Information:
    a.Some cash payments and cash receipts
    b.Given:
    CFO/CFI/CFF/capital CFF/non-capital CFF
    Question: Calculate the CFO--- Direct Method
    Analysis:
    1)Cash received from customers (+cash)
           Revenues
    -Increase in receivables
    +    Decrease in receivables
    +    Increase in unearned revenues
    -Decrease in unearned revenues
           Cash received from customers
    2)Cash paid to suppliers and employers (-cash)
           COGS
    +    Increase in Inventory
    -Decrease in Inventory
    -Increase in A.P
    +    Decrease in A.P.
           Cash Paid to Supplies
           Salaries and wages expense
    -Increase in Wages Payable
    +    Decrease in Wages Payable
           Cash paid to Employees
    3)Interest received (+cash)
    4)Interest paid (-cash)

    5)Dividends received (+cash)
    6)Income tax paid (-cash)

    7)Other received: insurance proceeds/ lawsuit settlements (+cash)
    8)Other paid (-cash)
          Other operating expenses
    -Decrease in Prepaid Expenses
    +    Increase in Prepaid Expense
    +    Decrease in Accrued Liabilities
    -Increase in Accrued Liabilities
    Cash Paid for Other Expenses

    9)Cash received from sale of trading securities (+cash)
    10)Cash paid to acquire trading securities (-cash)

    15. Type: Fill out a table--- Indirect method of statement of CF
    Information:
    a.Unadjusted balance of each activity
    b.Activities include: proceeds from sale/purchase of own CS
    Question: Calculate the CFO--- Indirect Method
    Analysis:
                               NI per I/S-“accrued inflow” (Accrual)
                        +    Depreciation/Amortization
                        -    “Gains”
                        +   ”Losses”
    -Increase in Assets
    +    Decrease in Assets[Current assets/ Current liabilities]
    +    Increase in Liability
    -     Decrease in Liability
            CFO (Cash)

    16. Type: Calculation--- Basic and dilutive EPS for PS & bonds
    Information:
    Question: a. Calculate the weighted average b. Get the dual EPS
    Analysis:
    Basic EPS= NI –PD or NL +PD  
              Weighted-average number of C/S outstanding

    Total Shares X Period Outstanding X Adjustment for Split = Weighted Average
    Acquired/Sold  A/S-end;Split-begin        Sum Up


    Type: Make JEs---Compensation expense
    Information:
    Version A
    a.Y1: October---approved stock option plan
    b.Y2: January---Grant date, option value at grant date
    c.Y3: Estimate forfeiture for the entire vesting period
    d.Vesting period: 4 years
    e.Change the accounting estimate during the vesting period
    Before--- 0 forfeited; after--- 1,500 shared forfeited per year
    Version B
    a.Option value at grant date= $xx
    b.Vesting period= 2 years (?)
    c.Y1 option value changed to $yy
    d.Y2 option value changed to $zz
    Question:
    Version 1
    a.Make JEs for Y1 October
    b.Calculate the compensation for each year and make JEs
    Analysis:
    E.G. Compensatory; Granted on 1/1/YR1; Exercisable 12/31/YR 2
    JE to record the grated options on 1/1/ YR 1
    NO entry required
    JE to allocate compensation cost to YR 1 operations
    DR Compensation expense= #shares * Exercise Price per share[FV of option / vesting years][agree]
    CR     APIC- stock options
    JE to allocate compensation cost to YR 2 operations
    DR Compensation expense= #shares * Exercise Price per share
    CR     APIC- stock options
    JE to record the exercise of the options on 1/1/YR3
    DR Cash= #shares * Exercise Price per share
    DR APIC-stock options= % Reverse the above accumulated
    CR     CS= # shares * Par per share
    CR     APIC-CS= Plug

    Expiration Options: reclassify the “APIC- stock options”
    JE to record the reclassification
    DR APIC- stock options= % NOT exercised * accumulated above
    CR     APIC-expired stock options

    F8 + F9 GOV---
    Type: Matching Items---Classification of Governmental Funds
    Information:
    a.Some activities to be categorized in governmental funds
    E.G. $ 2M to build a city hall>> Capital Project Fund
    b.Funds: GRaSPP
    Question: Classification the activities
    Analysis:
    Governmental Funds-GRaSPP        Description
    General         Ordinary operations of a governmental unit which is financed with taxes and other general revenues
    Special Revenue        Revenues from specific taxes or other earmarked sources to finance particular activities
    Debt Service        Accumulation of resources and the payment of interest and principal on all “general obligation debt”
    Capital Project        Acquisition or construction of major capital assets by a governmental unit
    Permanent        Report resources that are legally restricted to the extend income, and not principal




    20. Type: Matching Items---(Proprietary) Enterprise Fund Statement of CF
    Information:
    a.Direct method
    a.
    b.Noncapital financing & capital financing ONLY
    c.Given a table with accounts, all in positive numbers
    Increase +, Decrease -
    d.30 Transactions:
    Buy equipment/debt…
    Grant & subsidies non-capital financing
    Operating transfer to help funding a program
    Purchases/see/proceed of fixed assets >> capital financing
    Example of excluding from CF: equipment exchange (no boot)
    Question:  Classify CFO/CFI/CFF
    Analysis: F8-p68
    Capital financing activities (get $ for capital reasons):
    1)Acquiring and disposing fixed CAPITAL assets (construction cost)
    2)Capital grants
    3)Special assessments levied for capital acquisition
    4)Borrowing money and repaying amount borrowed from capital acquisition
    5)Capital outlay expenditures
    6)Sale of asset
    Non-capital financing activities (get $ for non-capital reasons):
    1)Borrowing for NON-capital purpose
    2)Cash receipts from grants or subsidies (e.g. operating grants)
    3)Operating transfer out
    4)Transfer fund to subsidize ongoing operations
    5)Property tax receipts
    6)Cash paid to other fund
    Operating activities:
    1)Payment for service for other funds
    E.G.  Transferred funds as payment in lieu of tax
              Interfund reimbursement for services







    F10: NFP---
    21. Type: Make JEs---Art Donation
    Information:
    a.An NFP received an artwork from a donor $1.2 MTo record the donation
    b.The NFP intends to sell this artwork within 6 months
    c.The FV decreased to $1.1 M at the end of Y1
    d.Sold this artwork in Y2 for $1.8 M
    e.Use the proceed from the sale to purchase a fixture $200,000
    f.Accounts available: inventory, gift revenue- unrestricted, gift revenue- temporarily restricted
    Question: Make 4 JEs
    g.
    a.Adjust for impairment
    b.Record profit of the sale of the donation
    c.Purchased the fixture using the proceeds
    Analysis:
    Record donation
    Dr. Asset               
    Cr.        Contribution Rev-Unrestricted     
    Record revaluation (impairment)
    Dr. Impairment loss   
    Cr.         Asset                                    
    Record the sale of artwork
    Dr. Cash                  
    Cr.         Asset                                             
    Cr.         Gain on sale of asset                                
    Use proceed to purchase fixture
    Dr. Fixture              
    Cr.         Cash                                      

    22. Type: Classify---NFP Statement of CF
    Information:
    a. OCF/NCFCF/CFCF/ICF???
    Question: Fill out the CF of non-capital financing activities & capital financing
    Analysis:
    1)Operating Activities
    a.Applicable agency transactions
    b.Receipts of unrestricted resources designated by the governmental body to be used for long-lived assets
    (When using the direct method, should be reported by major class of gross receipts- contributions, program income, interest income/dividend income)
    2)Investing Activities
    a.Proceeds from the sale of works of art/purchases of works of art
    b.Proceeds from the sale of asset that were received in prior periods and whose sale proceeds were restricted to investment in equipment
    c.Investment in equipment
    3)Financing Activities (borrowing & certain restricted contributions)
    a.Proceeds from restricted contribution
    E.G. Limiting the use to long-term purposes
    ---Increases to an endowment
    ---Purchase of asset
    ---Annuity agreements is displayed as a financing activity

    CFI: Disbursement of the above examples for either temporary investment/the purpose for which they were intended
    b.Other financing activities
    Borrowing
    Disbursements associated with split-interest agreements
    Receipts of dividends/interest restricted to reinvestment

    Cash and Cash equivalents:
    EXCLUDE restricted securities that may otherwise meet the cash equivalent

    definition in commercial accounting

    Type: Make JEs--- PUT/Reclassification
    Information: Three independent cases
    Year 1: received 3 contributions,
    1)$50,000 unrestricted
    2)$100,000 permanent restricted by donor, interest use for program service
    3)$75,000 is unrestricted by donor but will receive in year 3
    Year 2: has $10,000 program expense that use year 1 interest income
    Year 3: named as Beneficiary, the principal is restricted in a program
    Year 4: donor passed away when the restriction has not yet expired.
    Question: Make JEs


    Analysis:
    Statement of Financial Position--- Net Asset--- PUT
    1)Unrestricted
    -Available to finance general operations
    -Not P/T
    E.G. Internal board-designated funds
    2)Temporarily restricted
    -Donor imposed stipulations either expire by passage of time/fulfilled and removed by activities
    -Should not be displayed as a deficit
    Over expenditure should be classified as a reduction of U
    3)Permanently Restricted
    -Limited by donor imposed stipulations that neither expire by passage of time nor can be fulfilled or otherwise removed by actions
    -Can be reclassified from/to other classes of net assets as donor imposed stipulation


    Unrestricted Contribution
    Unrestricted pledges with implied time restriction- T restricted
    DR Pledge receivable- TR
    CR     Allowance for doubtful accounts
    CR     Contribution revenue-TR
    When collected
    DR Cash-TR
    CR     Pledge receivable- TR

    DR Satisfaction of time restriction- TR
    CR     Cash- TR
    When restricted released
    DR Cash-UR
    CR     Satisfaction of time restriction- TR

    Restricted Contribution
    Restricted net asset
    DR Pledge receivable-TR
    CR     Allowance for doubtful accounts
    CR     Restricted revenue- TR net asset

    When collected and when money is spent on restricted purpose- R NA
    DR Reclassification- satisfaction of restriction
    DR     Cash/restricted net asset

    UR NA
    DR Unrestricted net asset
    CR     Reclassification- satisfaction of restriction

    DR Operating expense
    CR     Cash/ Unrestricted net asset




    FAR
    SIM:
    1.Franchise JE
    2. Consolidation: balance sheet, income statement
    3. 之前有人提过的 各种asset dep and impair, 写JE, 完全没时间看TT
    4. Consolidation (我有两个答题都是consolidation)
    5. 没时间做
    6. Research: 新题型 (失忆.... 之前J里没提过的)
    7. Capital lease


    MC: 真的是每一章 都考遍了
    印象比较深刻的是F10考不少 尤其是derivative
    运气决定你成功的速度,实力决定你成功的高度...
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    发表于 2016-11-16 16:49:05
    非常感谢你的分享
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    发表于 2016-11-17 00:13:04
    感谢分享
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    发表于 2016-11-18 10:57:05
    thanks a lot.
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    发表于 2017-1-19 23:42:17
    感謝分享~~~~
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    发表于 2017-2-2 13:34:42
    謝謝分享~~~~
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    发表于 2017-6-9 21:37:29
    谢谢分享!!!~~
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