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Hawkins Laboratory International Corporation CHawkins) has recently asked you to design and implement an accounting system in Excel that separately maintains its stockholders' equity accounts.
Hawkins Laboratory International Corporation C"Hawkins") has recently asked you to design and implement an accounting system in Excel that separately maintains its stockholders' equity accounts. Hawkins has two classes of shares: 1) 5% preferred with a $10 par value, and 2) common with a S1 par value While this sounds like a big, complicated job, you readily accepted its offer to pay you $400,000 for your hard work To begin, you first asked Hawkins CFO, Mrs. Wheeler for electronic copies of all general ledger entries pertaining to stockholders equity to date, plus all previous Statements of Shareholders Equity to date. Mrs. Wheeler informed you that literally all of Hawkins books and records were recently destroyed in an unfortunate office fire. The only piece of information she was able to provide was a paper copy of Hawkins Statement of Shareholders Equity for 2015, and 2016 (provided on the last page of this document) Mrs. Wheeler was able to recall the following transactions that occurred during 2017 1/1/17: Issued 400,000 shares of common stock at $31 per share. The underwriter charged a 3% fee for issuing the shares. 1/1/17: Issued 500,000 shares of its preferred stock at $40 per share The shares were privately placed and Hawkins did not pay share issue costs. 3/1/17: Purchased 220,000 shares of common stock at s35 per share 6/30/17 Declared a $450,000 dividend for the first half of the year 7/1/17: Sold 105.000 of the treasury shares at $44 per share (the company uses the FIFO method when determining par value of sold treasury shares) 7/15/17: Paid the cash dividend. 9/1/17: Declared a distributed a property dividend of shares of stock in Byers Corp. Hawkins purchased 3.570.000 shars of Byers Corp in 2016 for $28.560,000. On 9/1/17, shares of Byers Corp, were trading at S1.50 per share 12/31/17 Hawkins reported net income of $5 325.691 (which includes the effects of any transactions listed above. Hawkins Laboratory International Corporation C"Hawkins") has recently asked you to design and implement an accounting system in Excel that separately maintains its stockholders' equity accounts. Hawkins has two classes of shares: 1) 5% preferred with a $10 par value, and 2) common with a S1 par value While this sounds like a big, complicated job, you readily accepted its offer to pay you $400,000 for your hard work To begin, you first asked Hawkins CFO, Mrs. Wheeler for electronic copies of all general ledger entries pertaining to stockholders equity to date, plus all previous Statements of Shareholders Equity to date. Mrs. Wheeler informed you that literally all of Hawkins books and records were recently destroyed in an unfortunate office fire. The only piece of information she was able to provide was a paper copy of Hawkins Statement of Shareholders Equity for 2015, and 2016 (provided on the last page of this document) Mrs. Wheeler was able to recall the following transactions that occurred during 2017 1/1/17: Issued 400,000 shares of common stock at $31 per share. The underwriter charged a 3% fee for issuing the shares. 1/1/17: Issued 500,000 shares of its preferred stock at $40 per share The shares were privately placed and Hawkins did not pay share issue costs. 3/1/17: Purchased 220,000 shares of common stock at s35 per share 6/30/17 Declared a $450,000 dividend for the first half of the year 7/1/17: Sold 105.000 of the treasury shares at $44 per share (the company uses the FIFO method when determining par value of sold treasury shares) 7/15/17: Paid the cash dividend. 9/1/17: Declared a distributed a property dividend of shares of stock in Byers Corp. Hawkins purchased 3.570.000 shars of Byers Corp in 2016 for $28.560,000. On 9/1/17, shares of Byers Corp, were trading at S1.50 per share 12/31/17 Hawkins reported net income of $5 325.691 (which includes the effects of any transactions listed above
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