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CPAChess
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Joined: 09 Sep 2008
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Posts: 221

Posted: 13 Oct 2008 at 13:09 \| IP Logged

You probably can find this yourself but here are the links for your convenience.

2008 -

http://www.beckercpa.com/students/2008_Financial_Released_MC _Questions.pdf

2007 -

http://www.beckercpa.com/students/Financial_MC_Questions_wit h_Solutions.pdf

2006 -

http://www.cpa-tac.com/us/new_q/pdf/becker_kaitei_far.pdf

2005 -

http://www.beckercpa.com/students/2005%20-%20Financial%20Que stions.pdf

CPAnet ETA 8/1/09: Becker recently redesigned its site and some of the links are not working...if you have a valid link, please post it here!

Valid Links to 2009 Released Questions w/ Explanations:
http://www.cpazone.com/2009/08/aicpa-released-questions-2009 .html

All sections, all links will eventually be housed here:
http://www.cpanet.com/cpa_forum/forum_posts.asp?TID=24535

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bullpenCPA
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Joined: 09 Oct 2008
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Posts: 30

Posted: 13 Oct 2008 at 13:41 \| IP Logged

Thanks for these. Does anybody know if they use similar questions to the releases or do they kind of throw these types out of the question bank?

minicre
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Joined: 15 Jul 2008
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Posts: 504

Posted: 13 Oct 2008 at 14:36 \| IP Logged

Too bad they got rid of these, a lot of the ones from 2008 are easy... lol

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minicre
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Posted: 13 Oct 2008 at 15:18 \| IP Logged

anyone know why this is the answer... please?

36.
On July 28, Vent Corp. sold $500,000 of 4%, eight-year subordinated debentures for $450,000. The
purchasers were issued 2,000 detachable warrants, each of which was for one share of $5 par common
stock at $12 per share. Shortly after issuance, the warrants sold at a market price of $10 each. What
amount of discount on the debentures should Vent record at issuance?
a. $50,000
b. $60,000
c. $70,000
d. $74,000
Choice "c" is correct.

__________________
REG------FAR------BEC------AUD

-79-------78-------77------90->

ALL DONE on 1st TRY, w/Becker!

Retro
Major Contributor

Joined: 18 Jul 2008
Location: United States
Online Status: Offline
Posts: 491

Posted: 13 Oct 2008 at 15:41 \| IP Logged

If the fair market value of the warrants is known, you use that to determine what to record them for. In this case, $10 X 2000 = $20,000.

Upon issuance you make the following entry.

DR Cash for $450,000

CR Debentures/Bonds for $500,000

CR Paid in Capital--Warrants for $20,000

To balance you have to discount

DB $70,000

Hope this helps! And I agree with you. My first thought was MAN I want THOSE questions on the CPA Exam. They seemed easy. There is no way I could get that lucky.

Good luck on your exam!

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