4 intermediate accounting questions 
Questions 1 Exercise 3-4 Balance sheet preparation [LO3-2, 3-3] The following is a December 31, 2013, post-closing trial balance for the Jackson Corporation. Account Title Cash Accounts receivable Inventories Prepaid rent Marketable securities (short term) Machinery Accumulated depreciation machinery Patent (net of amortization) Accounts payable Wages payable Taxes payable Bonds payable (due in 10 years) Common stock Retained earnings Totals Debits 40,000 Credits 34,000 75,000 16,000 10,000 145,000 11,000 83,000 8,000 4,000 32,000 200,000 100,000 48,000 403,000 403,000 Required: Prepare a classified balance sheet for Jackson Corporation at December 31, 2013. Questions 2 Exercise 3-12 Financial statement disclosures [LO3-4] Parkman Sporting Goods is preparing its annual report for its 2013 fiscal year. The company's controller has asked for your help in determining how best to disclose information about the following items: Required: Indicate whether the above items should be disclosed (A) in the summary of significant accounting policies note, (B) in a separate disclosure note, or (C) on the face of the balance sheet. 1. A related-party transaction 2. Depreciation method 3. Allowance for uncollectible account 4. Composition of investments 5. Composition of long-term debt 6. Inventory costing method 7. Number of share of common stock authorized, issued, and outstanding 8. Employee benefit plans Question 3 Exercise 4-3 Multiple-step continuous statement of comprehensive income [LO4-1, 4-5, 4-6, 4-7] The trial balance for Lindor Corporation, a manufacturing company, for the year ended December 31, 2013, included the following income accounts: Account Title Sales revenue Gain on litigation settlement (unusual and infrequent) Cost of goods sold Selling and administrative expenses Interest expense Unrealized holding gains on investment securities Debits Credits 2,300,000 400,000 1,400,000 420,000 40,000 80,000 The trial balance does not include the accrual for income taxes. Lindor's income tax rate is 30%. One million shares of common stock were outstanding throughout 2013. Required: Prepare a single, continuous multiple-step statement of comprehensive income for 2013, including appropriate EPS disclosures. (Amount to be deducted should be indicated with a minus sign. Round EPS answers to 2 decimal places.) Question 4 Exercise 4-18 Statement of cash flows; indirect method [LO4-9] Presented below is the 2013 income statement and comparative balance sheet information for Tiger Enterprises. TIGER ENTERPRISES Income Statement For the Year Ended December 31, 2013 ($ in thousands) Sales revenue Operating expenses: Cost of goods sold Depreci ation Insuran ce Adminis $ $ 3,360 240 100 1,800 7,000 trative and other Total operating expenses 5,500 Income before income taxes Income tax expense 1,500 600 Net income Balance Sheet Information ($ in thousands) Assets: Cash Accounts receivable Inventory Prepaid insurance Plant and equipment Less: Accumulate d depreciatio n Total assets Liabilities and Shareholde rs' Equity: Accounts payable Payables for administrati ve and other expenses Income taxes payable Note payable (due 12/31/2014) Common stock $ Dec. 31, 2013 $ 300 900 Dec. 31, 2012 $ 200 750 830 640 600 50 20 2,100 1,800 (840) (600) $ 3,000 $ 2,850 $ 300 $ 360 300 400 200 150 800 600 900 800 Retained earnings Total liabilities and shareholder s' equity 500 $ 3,000 540 $ 2,850 Required: Prepare Tiger's statement of cash flows, using the indirect method to present cash flows from operating activities. (Hint: You will have to calculate dividend payments.) (Enter your answers in thousands. Amounts to be deducted should be indicated with a minus sign.)
