Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hawkeye Corporation's balance sheet at December 3 1 , 2 0 2 1 , is presented as follows. During 2 0 2 2 , the

Hawkeye Corporation's balance sheet at December 31,2021, is presented as follows.
During 2022, the following transactions occurred.
On January 1,2022, Hawkeye issued 1,200 shares of $40 par, 7% preferred stock for $49,200.
On January 1,2022, Hawkeye also issued 900 shares of the $10 par value common stock for $21,000.
Hawkeye performed services for $320,000 on account.
On April 1,2022, Hawkeye collected fees of $36,000 in advance for services to be performed from April 1,2022, to March
31,2023.
Hawkeye collected $276,000 from customers on account.
Hawkeye bought $35,100 of supplies on account.
Hawkeye paid $32,200 on accounts payable.
Hawkeye reacquired 400 shares of its common stock on June 1,2022, for $28 per share.
Paid other operating expenses of $188,200.
On December 31,2022, Hawkeye declared the annual preferred stock dividend and a $1.20 per share dividend on the
outstanding common stock, all payable on January 15,2023.
An account receivable of $1,700 which originated in 2021 is written off as uncollectible.
Adjustment data:
A count of supplies indicates that $5,900 of supplies remain unused at year-end.
Recorded revenue from item 4 above.
The allowance for doubtful accounts should have a balance of $3,500 at year end.
Depreciation is recorded on the building on a straight-line basis based on a 30-year life and a salvage value of $10,000.
The income tax rate is 30%.(Hint. Prepare the income statement up to income before income taxes and multiply by 30% to
compute the amount.)
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Impact On Decision Makers

Authors: Gary A. Porter, Curtis L. Norton

7th Edition

1111464936, 978-1111464936

More Books

Students also viewed these Accounting questions

Question

Calculate the depreciation of all the assets listed in the image

Answered: 1 week ago