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Help with A2 please Hawkeye Corporation's balance sheet at December 31, 2019, is presented below. HAWKEYE CORPORATION Balance Sheet December 31, 2019 Cash $ 22,800
Help with A2 please
Hawkeye Corporation's balance sheet at December 31, 2019, is presented below. HAWKEYE CORPORATION Balance Sheet December 31, 2019 Cash $ 22,800 Accounts payable $ 24,400 Accounts receivable 49,800 Common stock ($10 par) 83,000 Allowance for doubtful accounts (1,700) Retained earnings 138,900 Supplies 4,100 Land 42.800 Buildings 152,000 Accumulated depreciation-buildings (23,500) $ 246,300 $ 246,300 During 2020, the following transactions occurred. 1. On January 1, 2020, Hawkeye issued 1,200 shares of $ 40 par, 6% preferred stock for $ 49,200. 2. On January 1, 2020, Hawkeye also issued 900 shares of the $ 10 par value common stock for $22,100. 3. Hawkeye performed services for $ 319,000 on account. 4. On April 1, 2020, Hawkeye collected fees of $ 34,400 in advance for services to be performed from April 1, 2020, to March 31, 2021. 5. Hawkeye collected $ 292,500 from customers on account. 6. Hawkeye bought $ 35,600 of supplies on account. 7. Hawkeye paid $32,300 on accounts payable. 8. Hawkeye reacquired 400 shares of its common stock on June 1, 2020, for $29 per share. During 2020, the following transactions occurred. 1. On January 1, 2020, Hawkeye issued 1,200 shares of $ 40 par, 6% preferred stock for $ 49,200. 2. On January 1, 2020, Hawkeye also issued 900 shares of the $ 10 par value common stock for $ 22,100. 3. Hawkeye performed services for $319,000 on account. 4. On April 1, 2020, Hawkeye collected fees of $ 34,400 in advance for services to be performed from April 1, 2020, to March 31, 2021. 5. Hawkeye collected $ 292,500 from customers on account. 6. Hawkeye bought $ 35,600 of supplies on account. 7. Hawkeye paid $32,300 on accounts payable. 8. Hawkeye reacquired 400 shares of its common stock on June 1, 2020, for $ 29 per share. 9. Paid other operating expenses of $ 195,700. 10. On December 31, 2020, Hawkeye declared the annual preferred stock dividend and a $ 1.10 per share dividend on the outstanding common stock, all payable on January 15, 2021. 11. An account receivable of $ 1,500 which originated in 2019 is written off as uncollectible. Adjustment data: 1. A count of supplies indicates that $6,000 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 $3,600 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 $ 11,000. 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.) 1. Cash 49200 Preferred Stock 48000 Paid-in Capital in Excess of Par-Preferred Stock 1200 2. Cash 21000 Common Stock 9000 Paid-in Capital in Excess of Par-Common Stock 12000 3. Accounts Receivable 320000 Service Revenue 320000 4. Cash 36000 Unearned Service Revenue 36000 5. Cash 276000 Accounts Receivable 276000 6. Supplies 35100 Accounts Payable 35100 7. Accounts Payable 32200 Cash 32200 8. Treasury Stock 11200 Cash 11200 9. Operating Expenses 188200 Cash 188200 10. Dividends 12560 Dividends Payable 12560 11. Allowance for Doubtful Accounts 1500 Accounts Receivable 1500 Prepare the adjusting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.) No. Account Titles and Explanation Debit Credit 1. 2. 3. 4. 5. Save for Later Attempts: 0 of 1 used SubmitStep by Step Solution
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