question 3. (CO B) Adjusting entries: On April 1, 201X, Jokers Company assigns $600,000 of its accounts receivable to the First National Bank as collateral for a $300,000 loan due July 1, 201X. The assignment agreement calls for Jokers Company to continue to collect the receivables. First National Bank assesses a finance charge of 2% of the accounts receivable, and interest on the loan is 10% (a realistic rate of interest for a note of this type). Prepare the April 1, 201X journal entry for Jokers Company. You are to prepare the missing adjusting entry. For each journal entry write DR for debit and CR for credit.

question 5

(CO C) Presented below is information related to Blue Skies Company.

Retained earnings, December 31, 20X2	$650,000
Sales	1,400,000
Selling and administrative expenses	240,000
Hurricane loss (pre-tax) on plant (extraordinary item)	290,000
Cash dividends declared on common stock	33,600
Cost of goods sold	780,000
Gain resulting from computation error on depreciation charge in 20X1 (pre-tax)	520,000
Other revenue	120,000
Other expenses	100,000

Instructions: Prepare in good form a multiple-step income statement for the year 2011. Assume a 30% tax rate and that 80,000 shares of common stock were outstanding during the year. Show EPS computations as well.

question 6

(CO D) The following balance sheet was prepared by the bookkeeper for King Company as of December 31, 201X. King Company Balance Sheet as of December 31, 201X is as follows.

Cash	$ 80,000		Accounts payable	$ 75,000
Accounts receivable (net)	52,200		Long-term liabilities	100,000
Inventories	57,000		Stockholders' equity	218,500
Investments	76,300
Equipment (net)	96,000
Patents	32,000
	$393,500			$393,500

The following additional information is provided.

Instructions: Prepare a balance sheet in good form (stockholders' equity details can be omitted).