Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Hawkeye Corporation's balance sheet at December 31,2021 , is presented as follows. During 2022, the following transactions occurred. 1. On January 1,2022 , Hawkeye issued
Hawkeye Corporation's balance sheet at December 31,2021 , is presented as follows. During 2022, the following transactions occurred. 1. On January 1,2022 , Hawkeye issued 1,200 shares of $40 par, 7% preferred stock for $49,200. 2. On January 1, 2022, Hawkeye also issued 900 shares of the $10 par value common stock for $21,000. 3. Hawkeye performed services for $320,000 on account. 4. 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. 5. Hawkeye collected $276,000 from customers on account. 6. Hawkeye bought $35,100 of supplies on account. 7. Hawkeye paid $32,200 on accounts payable. 8. Hawkeye reacquired 400 shares of its common stock on June 1,2022 , for $28 per share. 9. Paid other operating expenses of $188,200. 10. 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. 11. An account receivable of $1,700 which originated in 2021 is written off as uncollectible. Adjustment data: 1. A count of supplies indicates that $5,900 of supplies remain unused at year-end. 2. Recorded revenue from item 4 above. 3. The allowance for doubtful accounts should have a balance of $3,500 at year end. 4. Depreciation is recorded on the building on a straight-line basis based on a 30-year life and a salvage value of $10,000. 5. 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.) Liabilities and Stockholders' Equity Liabilities and Stockholders' Equity $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started